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Buying FSBO #5574967 01/31/15 07:05 PM
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TXHOGSLAYER Offline OP
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I am going to buy a house from the owner but have never done this without an agent. How does one do this? Contact a real estate attorney to do the contract? A title company? A bored real estate agent? What is a customary charge for this service?

Any advice appreciated.

Re: Buying FSBO [Re: TXHOGSLAYER] #5575076 01/31/15 08:12 PM
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Stevarino Offline
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Print out and write up your own contract, and upon signing, contact a title company to open escrow. Fees associated with their services are typically due at time of settlement except maybe your appraisal and survey if needed.
http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp

You may need an addendum or two if you are going into contract with a contingency or need to make any changes after an inspection.. Ect.

Read through those forms and if you need clarification , just call the title company you intend on using.


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Re: Buying FSBO [Re: TXHOGSLAYER] #5575082 01/31/15 08:15 PM
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^^^^

Terrible advise, that's a good way to make mistakes if you have never done it before

Pay a broker $500 to fill out the contract and go thru every item

Can also use an attorney but always use a professional when it comes to contracts

Re: Buying FSBO [Re: TXHOGSLAYER] #5575115 01/31/15 08:33 PM
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Too funny. Just like a broker to come in and tell you this. Any one can do this with out an agent.


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Re: Buying FSBO [Re: txtrophy85] #5575175 01/31/15 09:28 PM
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Originally Posted By: txtrophy85
^^^^

Terrible advise, that's a good way to make mistakes if you have never done it before

Pay a broker $500 to fill out the contract and go thru every item

Can also use an attorney but always use a professional when it comes to contracts


Listen to him. up

Re: Buying FSBO [Re: TXHOGSLAYER] #5575221 01/31/15 09:48 PM
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To the OP, do what you want, but I can assure you, you can do without an agent.


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Re: Buying FSBO [Re: TXHOGSLAYER] #5575232 01/31/15 09:55 PM
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Stevarino, thanks for your advice. I am sure that I could do it by myself, but would hate to make a mistake and have it ending up biting me in the bag.

I have no problem paying someone for their expertise when this much money is at stake.

So I pick a broker...I assume that they will have a title company that I can use or is that something separate? The title company will handle the inspection and survey?

Re: Buying FSBO [Re: TXHOGSLAYER] #5575241 01/31/15 10:05 PM
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Most of your agents will have/ recommend a title company to use. It doesn't hurt to call a couple title companies on your own to receive quotes. Picking a title comapny is your choice, not the agents or mortgage broker.


Be sure you look over your brokers "work" so you know how to do on your own next time. cheers


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Re: Buying FSBO [Re: Stevarino] #5575440 01/31/15 11:48 PM
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Originally Posted By: Stevarino
Most of your agents will have/ recommend a title company to use. It doesn't hurt to call a couple title companies on your own to receive quotes. Picking a title comapny is your choice, not the agents or mortgage broker.


Be sure you look over your brokers "work" so you know how to do on your own next time. cheers


Question

How many real estate transactions have you done on your own?

Re: Buying FSBO [Re: TXHOGSLAYER] #5575453 01/31/15 11:52 PM
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Originally Posted By: TXHOGSLAYER
Stevarino, thanks for your advice. I am sure that I could do it by myself, but would hate to make a mistake and have it ending up biting me in the bag.

I have no problem paying someone for their expertise when this much money is at stake.

So I pick a broker...I assume that they will have a title company that I can use or is that something separate? The title company will handle the inspection and survey?


Title company does nothing but issue the title policy and commitment

It's up to you and seller to get inspections and surveys done.....title company has no responsibility arrange that

Do yourself a favor and get an agent on your side before you sign anything

In real estate, the only way you learn is by experience. Using a agent/ broker you are getting their experience gaind thru dozens of real estate transactions to help you get the best deal possible.


Re: Buying FSBO [Re: txtrophy85] #5575514 02/01/15 12:33 AM
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Originally Posted By: txtrophy85
Originally Posted By: Stevarino
Most of your agents will have/ recommend a title company to use. It doesn't hurt to call a couple title companies on your own to receive quotes. Picking a title comapny is your choice, not the agents or mortgage broker.


Be sure you look over your brokers "work" so you know how to do on your own next time. cheers


Question

How many real estate transactions have you done on your own?


Son son son, plenty and ill leave it at that. Been in the business a long time and couldn't care less for real estate agents.


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Re: Buying FSBO [Re: TXHOGSLAYER] #5575518 02/01/15 12:36 AM
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Well plenty sure sums it up



Everyone, he has plenty of experience and he is in "the business"

By all means ignore the advice of the professional broker and listen to mr. Stevarino

Point I was making is when you did your first deal you were not experienced. So why would you tell a person with no experience that he can do it on his own?

That's poor advice

Re: Buying FSBO [Re: TXHOGSLAYER] #5575534 02/01/15 12:50 AM
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I think what the OP wants to know is if there a professional, working for a flat fee, who will take care of everything once the OP has selected a property he wants to buy.


Re: Buying FSBO [Re: txtrophy85] #5575593 02/01/15 01:23 AM
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Originally Posted By: txtrophy85
Well plenty sure sums it up



Everyone, he has plenty of experience and he is in "the business"

By all means ignore the advice of the professional broker and listen to mr. Stevarino

Point I was making is when you did your first deal you were not experienced. So why would you tell a person with no experience that he can do it on his own?

That's poor advice


You have no idea of my background other than the 2 sentences above.
If you would have read his post, the OP did not state this was his first real estate transaction, just a first FSBO and was asking how to go about it.

Share your opinion like you always do. Good for you, but what I absolutely hate about this forum is the select few like you that like to try and prove everyone wrong.
Stay classy bud.


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Re: Buying FSBO [Re: TXHOGSLAYER] #5575613 02/01/15 01:33 AM
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TXHOGSLAYER, I'm just curious - how do you know what you're paying for the house is fair market value?

Re: Buying FSBO [Re: TXHOGSLAYER] #5575631 02/01/15 01:41 AM
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Is the seller willing to pay a buyer’s agent commission, which is typically 3%? If you hire a broker to represent you when buying a home, it does not cost you anything to utilize their expertise. That comes from the seller’s side of the deal and something the majority of sellers understand is necessary to pay to have a smooth transaction.

Everyone has access to comparable sales so determining the right price to offer has been made easier, but making an offer and writing a contract is the “easy” part….its all the things that go on behind the scene that most buyers and seller don’t know how to handle correctly and within the time allowed, per the contract (appraisals, inspections, earnest money / option fee deposits, HOA and Third Party Financing Addendums, etc, etc.). Do yourself a favor and hire a broker to represent you.

Re: Buying FSBO [Re: TexasLandAgent] #5575641 02/01/15 01:45 AM
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Originally Posted By: TexasLandAgent
TXHOGSLAYER, I'm just curious - how do you know what you're paying for the house is fair market value?


The short answer is: I don't. We have been looking in the area for almost 3 years and studying new listings as they come up. I thought that there was an addendum for 3rd party financing that stipulated the terms I would need for the contract to move forward.

To be clear, I have purchased half a dozen homes, sold all but one of those and always used an agent. I believe myself to be above average intelligence which is why I know what I don't know. If my lawn sprinkler system breaks or a drain is plugged I can handle it. If it is a broken pipe under the house, I am calling an expert. up

So I guess the question is: Is the real estate contract a clogged drain or a busted pipe? grin

Re: Buying FSBO [Re: postoak] #5575650 02/01/15 01:48 AM
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Originally Posted By: postoak
I think what the OP wants to know is if there a professional, working for a flat fee, who will take care of everything once the OP has selected a property he wants to buy.


Bingo! I guess the answer is no.

Re: Buying FSBO [Re: TXHOGSLAYER] #5575662 02/01/15 01:52 AM
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It’s a busted pipe under the house that was caused by major foundation damage due to incorrect drainage, and that could potentially get you sued, if not done correctly.

Re: Buying FSBO [Re: TXHOGSLAYER] #5575663 02/01/15 01:53 AM
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Is the seller give you an option period for inspection? For how long?

I'm pretty sure a licensed agent/broker that has 1/2 a brain isn't going to expose themselves to legal liability by writing a contract for you without a buyers representation agreement in place; which leaves an attorney. Most bad real estate attorneys I know charge $150 an hr.

The title company will do your policy and your commitment but they're not going to do anything with your purchase contract. Title search, policy, fees, etc will cost someone a couple grand. Seller usually pays for that...did you get that in your contract?

Re: Buying FSBO [Re: TXHOGSLAYER] #5575698 02/01/15 02:07 AM
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Floydada, well said, with one exception: everyone does not have access to comparable sales data. Listing prices aren't accurate reflections of final contract sales prices and syndicated sites like Zillow, Trulia, Redfin, etc etc lag terribly in their updates of market inventory. Market values shift, literally, from month to month and those sites are on average 5 months old. Only someone with access to an MLS for your area will have true sold comp data. Just $0.02 worth there.

Re: Buying FSBO [Re: TXHOGSLAYER] #5575727 02/01/15 02:29 AM
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Sounds pretty easy. Ask the seller if he is willing to pay 3% to a buyer's agent and if he says "yes" then say "there won't be one so that money comes off our agreed purchase price".



Buying a FSBO


Re: Buying FSBO [Re: TXHOGSLAYER] #5575773 02/01/15 02:49 AM
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If you need to ensure yourself you are getting a good deal....even though following the market, homes for sale of similar square footage in the same area, their initial asking price, and changes to said price, and time on the market is a good indicator and readily available.....then find an agent to show you comparables in the neighborhood for a fee. Although I know many who will do it for free.

I've bought and sold numerous properties both with and without an agent. The only time I utilize an agent is for marketing on a property in a slow market as a seller, or as a buyer if I just don't have the time to deal with it OR if there are some circumstance where I think having an agent represent me (at a higher price if FSBO) does makes sense...and oftentimes it does for various reasons. But VERY doable on your own. It's not that an agent has no value, it's just that sometimes that value doesn't come close to the cost of commission, at least for me.

EDIT....and also a FSBO seller generally takes into account the fact that there is no sales commission when agreeing on price. I've sold them that way before and my acceptable price is 4-6% lower when selling without an agent. If a buyer brings an agent, great. I have no problem with it. BUT the sales price will increase exactly the amount of the buyer's agent's commission, whatever that is, unless the buyer pays the agent directly. And just because they are a licensed agent, don't assume that they know more about the market than you do. Some are fantastic, but some may know substantially less.....or that has been my experience.

Last edited by HillbillyDeluxe; 02/01/15 03:45 AM.
Re: Buying FSBO [Re: postoak] #5576644 02/01/15 08:13 PM
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Originally Posted By: postoak
I think what the OP wants to know is if there a professional, working for a flat fee, who will take care of everything once the OP has selected a property he wants to buy.


Yes, many will write contracts for a flat fee. So will real estate attorneys

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