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Old 08-02-2012, 12:52 PM
 
108 posts, read 325,671 times
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I am looking at buying a home that is for sale by owner.

When you buy a house that is for sale by owner is it possible to go through a title company instead of going through a realtor ?

Would it be cheaper (monetary) to go through a realtor or go through a title company when buying a house that is for sale by owner.

I do not feel comfortable buying a home without a realtor or someone helping me with the legalities of the sale.

Can anyone give me some advice on the matter of buying a home that is for sale by owner ?
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Old 08-02-2012, 01:08 PM
 
Location: The Triad (NC)
26,947 posts, read 58,291,429 times
Reputation: 29508
Quote:
Originally Posted by Demps View Post
When you buy a house that is for sale by owner...
is it possible to go through a title company instead of going through a realtor ?
Absolutely... but the FIRST step is to find a lawyer to represent you.
They might be/have the title process as well... but FIRST step is to have YOUR attorney.

They'll review the sellers prepared contract and then mark it up so much that it's useless..
then prepare your offer contract (based on a standard form usually) on their own.
This process is instructive and worth every penny of the modest fee involved.

And in general... they'll be sure that all the usual ducks are in their usual rows
before allowing you to make any commitments you'll later regret.

There is a TON of things that you need to know in order to buy (and finance) wisely...
rely on your lawyer to get you through this but do understand that they WILL have fees
and that your offer price should reflect some of these.
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Old 08-02-2012, 01:21 PM
 
Location: Columbia, SC
8,870 posts, read 17,507,475 times
Reputation: 6260
You will need a title company regardless (assuming you're a tc state).
You may be able to save money or not w/o an agent but it's really hard to say. It depends on your ability to do research, get a fair price, and handle contract to close issues.
If you are uncomfortable, you may be better served hiring representation where you have the agent negotiate the fee to be paid by the seller, by yourself, or possibly pay them a flat or hourly rate out of pocket.
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Old 08-02-2012, 02:33 PM
 
1,731 posts, read 2,291,840 times
Reputation: 3428
Quote:
Originally Posted by Demps View Post
I am looking at buying a home that is for sale by owner.

When you buy a house that is for sale by owner is it possible to go through a title company instead of going through a realtor ?

Would it be cheaper (monetary) to go through a realtor or go through a title company when buying a house that is for sale by owner.

I do not feel comfortable buying a home without a realtor or someone helping me with the legalities of the sale.

Can anyone give me some advice on the matter of buying a home that is for sale by owner ?

Realtors go through Title Companies to get Title Insurance, they are not title insurers and you do not want to buy a property without Title Insurance. FSBO means the seller most likely will not pay your realtor's fees if you decide to get one so you would have to just add them onto the price of the property.

I would highly recommend not getting a realtor and doing as the previous poster said and just getting an attorney to do all of your paperwork. In this case an attorney will do a better job for an hourly fee much lower than a percentage of the property.

If you don't have an attorney you already use call whatever big name title company is in your area, ask for a reference for an attorney to review your documents. They will provide you with several affordable options...should not cost much for an attorney to review your documents.
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Old 08-02-2012, 02:59 PM
 
Location: Columbia, SC
8,870 posts, read 17,507,475 times
Reputation: 6260
Quote:
Originally Posted by marksmu View Post
Realtors go through Title Companies to get Title Insurance, they are not title insurers and you do not want to buy a property without Title Insurance. FSBO means the seller most likely will not pay your realtor's fees if you decide to get one so you would have to just add them onto the price of the property.

I would highly recommend not getting a realtor and doing as the previous poster said and just getting an attorney to do all of your paperwork. In this case an attorney will do a better job for an hourly fee much lower than a percentage of the property.

If you don't have an attorney you already use call whatever big name title company is in your area, ask for a reference for an attorney to review your documents. They will provide you with several affordable options...should not cost much for an attorney to review your documents.
A valid post but since the buyer said they uncomfortable with the process, they may want to consider just hiring an agent to help with the inspections/repair addendums and such thay the tc won't help. Some independent agents may be willing to work on a flat fee or hourly basis.
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Old 08-02-2012, 03:04 PM
 
Location: Florida -
8,287 posts, read 10,077,589 times
Reputation: 15232
Quote:
Originally Posted by Demps View Post
I am looking at buying a home that is for sale by owner.

When you buy a house that is for sale by owner is it possible to go through a title company instead of going through a realtor ?

Would it be cheaper (monetary) to go through a realtor or go through a title company when buying a house that is for sale by owner.

I do not feel comfortable buying a home without a realtor or someone helping me with the legalities of the sale.

Can anyone give me some advice on the matter of buying a home that is for sale by owner ?

An assumption that you can save the 5% realtor fee by buying a 'for sale by owner' home begs the 'less than what?' question. Is the owner's motive really an altruistic effort to save you money ... or a realization that they probably can't get the higher price they have in mind? If the latter, is the new 'non-realtor' price really a bargain? More important, how are you specifically going to comfortably assure yourself that you are paying the right price.

Also, since the seller typically pays the entire realtor fee (which also covers your realtor's share of the fee, if you have your own realtor) ... Not involving a realtor deprives both the seller and buyer of transaction, comp, inspection, etc-advice. Yes, between a lawyer and the title company, you can protect your own interests, but, then, you are paying for that service (which still does not deal with the RE market issues).

I've sold homes on my own, but, when buying, would rather have someone involved on my side that understands the local market dynamics ... and can advise me about things I might otherwise miss. In this market, I would be more concerned that I was paying the best possible price, than with possibly saving 5% on a RE commission. Perhaps the question you should be asking, is "How can I best ensure that I've got the most competent realtor working for me?"
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Old 08-02-2012, 03:05 PM
 
Location: Barrington
42,186 posts, read 31,969,050 times
Reputation: 14145
Quote:
Originally Posted by marksmu View Post

Realtors go through Title Companies to get Title Insurance, they are not title insurers and you do not want to buy a property without Title Insurance.
Another regional thing....Agents do not have anything to do with title companies in my area. The sell or more likely, the seller's attorney will chose the title company.
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Old 08-02-2012, 03:10 PM
 
Location: Barrington
42,186 posts, read 31,969,050 times
Reputation: 14145
Quote:
Originally Posted by Demps View Post

I am looking at buying a home that is for sale by owner.
Is this a specific property or you just want to buy something without the involvement of an agent, on either side?

Given your ignorance of the risks and process, minimally hire a real estate attorney to cover your bases.
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Old 08-02-2012, 03:18 PM
 
Location: Lexington, SC
4,281 posts, read 10,336,950 times
Reputation: 3700
Quote:
Originally Posted by middle-aged mom View Post
Is this a specific property or you just want to buy something without the involvement of an agent, on either side?

Given your ignorance of the risks and process, minimally hire a real estate attorney to cover your bases.
This I agree with. Hire a real estate attorney before you sign anything, anything, anything.....need I repeat.....LOL
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Old 08-02-2012, 03:22 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 18,603,839 times
Reputation: 6361
I would like to remind several of the posters here that not all states (especially the western US) have attorneys handle real estate closings. If one needs legal advice about real estate by all means hire an attorney.
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