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Thanks to those who pointed out the inaccuracies of that long post.
I will be looking around again at some point and was unsure of the process from start to finish. I thought that lengthy explanation was great and taught me a lot. Now I come to find out from the professionals here that a lot of it is not accurate.
The OP should take a hard lesson away from this thread and that is, if you are planning to do something that you are not 100 percent sure of, pay a professional to take you through the process. It looks to me like a recipe for disaster if you don't.
Real Estate professionals believe in the service they provide. Much like other professionals, lender, inspectors, appraisers, dentists, etc...
If you do not know, then it is best to interview and hire the best local Realtor you can find. If you hire someone that is not motivated, or incompetent - admit your fault in hiring that person, and get someone who will get the job done.
Beside telling my sellers what buyers are looking for (cause buyers say lots of things during showings) I know how to "frame" issues to other Realtors in a transaction. For example, one seller agreed to pay all closing costs, 5% of the purchase price, so when the inspection objection came back to us, it said the seller was to replace the 2 GFI in the kitchen and bath with a licensed electrician. The seller not so politely refused to me. There was a lot of we cam down, and we are paying for their... When I talked to the selling agent, I pointed out that 5% was more than "average" in our area, and two GFI's would cost less than $200 - the buyer could hire an electrician of their choice after closing. There would be a greater satisfaction level for the buyer for the $200 spent. We closed, a day early without issue.
Sometimes you need a buffer, an investigator, an ear, more options....you don't know what you don't know. With two opposing parties, you never know what could come up next. But Realtors have a plan, and their plans have contingency plans.
I purchased and sold houses for 30 years in several states. I purchased directly from sellers where no realtor was involved. I also sold directly to buyers where no realtor was involved.
In the past, I had realtors ask for ONE TIME listing to show the house to their client. I had a realtor ask for a SHORT LISTING, as she had several clients who wanted to see the house. So, yes, realtors can show a FSBO property, but you can bet the realtor has an signed agreement to show it. No REALTOR in any state ever agreed TO SHOW my house without A signed contract called a LISTING Agreement.
According to FEDERAL law, no real property may be sold without a contract. You can buy with Hope Diamond with a check. You can buy a baseball team with cash and stock. But you cannot buy the stadium without a contract.
The National Association of Realtors is a Washington, DC lobby group. As and entity it has zero legal standing in any court in the United States, although their lawyers may. The NAR Code of Ethics is a general guideline as to how realtors ought to conduct business. It keeps realtors up to date on legal issues and changes in the law that directly affect realtors, and they sell various contracts to Broker/owners so they may conduct the business of "real estate" from their office.
A bank appraisal and an Home Inspection are not the same. The are written opinions used for two entirely different purposes. The appraisal assures the lender the property has value equal to or exceeding the loan amount. The home inspection reveals all problem areas from the curled, flaking roof shingles and twisted rafters, to the hidden "triple taps", the 100 year old "knob and tube" wiring that is still 'hot', and the area around the house that needs to be re-graded to prevent potential water problems. The lawyer is hired to find "defects" that prevent a clear title passing from the current owner to new owner.
The Mold inspection is conducted inside and outside of the home. The instruments used determine [A] IF mold is present and if so, [b] where it is located. If is not uncommon to find mold hiding behind basement paneling, in bathrooms behind toilets, in ceilings, or in houses that have not been occupied for more than 90 days.
BTW. I looked at several houses for investments. Each was empty for 180 days or longer. Each house had utilities interrupted for several months. Each house was infected with mold. Regardless of popular opinion, not all mold infections can be cured with a grocery store bleach removal product. It does NOT apply to mold you cannot see or smell. Mold re-mitigation (removal) can add up to thousands of dollars in a hurry.
What most do not understand is mold attacks the lungs. The only place everyone can escape mold, is inside a mold free building. It is impossible to look at any buildings and determine if it is mold free or not.
I do not buy any house that does not pass a mold inspection. One house I had tested revealed hidden mold in the wood siding, mold in the basement, mold in the ceiling, mold on the porch and steps, mold in the bathroom, and inside the kitchen cabinets.
With all due respect, that is one of the most overused and worthless real estate phrases. A seller who has to pay less commission (6% down to 3% or even 0% FSBO) is going to be far more willing to negotiate price and share that savings with the buyer if necessary to make the sale.
Ultimately both buyer and seller are hit with that 6% commission as it plays a major role in determining the agreed upon price.
In the past, I had realtors ask for ONE TIME listing to show the house to their client. I had a realtor ask for a SHORT LISTING, as she had several clients who wanted to see the house. So, yes, realtors can show a FSBO property, but you can bet the realtor has an signed agreement to show it. No REALTOR in any state ever agreed TO SHOW my house without A signed contract called a LISTING Agreement.
Actually, in Texas, it's a form where you register those specific buyers with that specific seller. Our buyer's rep agreement states that the buyer will pay us a specific percentage of the sales price, but that we will look first to the seller's agent or the seller for that (as it is customary here for the seller's agent to offer the co-broke to the buyer's agent). That paragraph is mostly because of FSBO's, some of whom will not be willing to pay a buyer's agent. The form in question is NOT a listing agreement and it specifies on it who we're representing, and one of the choices is buyer only.
I'm sorry, but the things you are stating are often inaccurate, at least in the state that I (and apparently the states that several other people here) practice in. Even a real estate professional with many, many deals under their belt (more experience than the average buyer) knows, and will acknowledge, that they do not know exactly how things work or what real estate law is in states that they are not licensed to practice in, because it does vary from state to state.
In that case, it's written into the contract or figured into the offer in some way so that we are paid.
With all due respect, that is one of the most overused and worthless real estate phrases. A seller who has to pay less commission (6% down to 3% or even 0% FSBO) is going to be far more willing to negotiate price and share that savings with the buyer if necessary to make the sale.
Ultimately both buyer and seller are hit with that 6% commission as it plays a major role in determining the agreed upon price.
I disagree.
Most FSBOs do it to avoid paying ANY commission. Therefore, they overprice their house to begin with and if they ever get a buyer, the FSBO doesn't negotiate very much at all.
Most FSBOs do it to avoid paying ANY commission. Therefore, they overprice their house to begin with and if they ever get a buyer, the FSBO doesn't negotiate very much at all.
Vicki
If I had to plot where most FSBOs set their price point I would say that the "bell curve" for them tends to be somewhere between "crazy high" and "from another planet".
Now I also do think there is a TINY percentage of FSBO sellers that really do set a fair price / are open to fair offers. Personally my aunt, now deceased, sold at least two homes that way quickly and profitably. I can also fully sympathize with the folks that are literally soclose to not breaking even on a sale that if they do no go FSBO they will have to bring money to the table. I think such folks are a so small in number as to be a non-issue, though they are QUITE SAAVY and probably WAY overrepresented on-line here and in other places...
For probably 95%+ of sellers FSBO is NOT the way to go...
I actually found the long post most helpful. I am in a different state so a few minor things are not the same but this is very close to all the things my realtor just taught me. I loved the concrete examples... made the gist of the process much easier.
That being said.... Seriously find a Realtor/buyers agent. They are on YOUR side and can help you navigate this crazy process. I also agree with the advice to check with the lender MUCH earlier in the process. My realtor, while not being a home inspector, has enough experience that she has been able to point out potential issues and notices many more things about a house than I would ever have thought about on my own!
Good luck from a fellow "clueless" home buyer who is learning something new every single day. (Today was all about the types of water and sewage options on various properties -- never thought I'd need to know that, lol )
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Too true!
