For Sale By Owner (Austin: real estate, sex offenders, loan) - Texas (TX) - City-Data Forum

CaryCathleen · 01-15-2007, 08:29 PM

We just came to Austin to buy a house because ours is sold and we have to be out in a month. We spent 2.5 days with a very helpful and hard-working real estate agent, but didn't find a home that we wanted to make an offer on. While driving around, we accidentally found a For Sale By Owner that is the perfect home. The sellers don't want to pay a commission and said that we have to pay it. So, in order to get this house, the most we can pay is $2,000 and the house is selling for $220,000. Is this fair to just pay the agent the cash and tell her that we'll buy the home without her? Help, I'm feeling so uncomfortable, but if we pay the full commission, we can't afford the home.
Al

The beave · 01-15-2007, 11:56 PM

If you found the home without the assistance of the agent, and the agent was not involved in any of the sales documents they have not earned a commission and you are under no obligation to pay a commission. The agent did not find a home that met your requirements. Commissions are not based on effort; they are based on a successful sale. In any case the seller pays the commission. If you fee an obligation to the agent perhaps a gift certificate would be appreciated.

kawgpz550 · 01-15-2007, 11:58 PM

The best way I could suggest handling your situation would be to be totally honest with your real estate lady. Make sure you let her know that you would like to repay her some time for her time etc. Maybe perhaps invite her out to dinner and let her know that she will be the one you refer everyone to that crosses your path, intrested in buying or selling a home. Apologize to her for the inconvenience and and thank her for her time. You have to remember, realtors realize that sometimes they must spend countless hours with a "potential" client in the hopes of making a sale, however not ALL sales work out accordingly.
On another note: If you are unfamiliar with real estate in ANY sense, you would be MUCH BETTER OFF trying to negotiate with the sellers and try to talk them down in price or??? And do anything and everything possible to make sure you are represented by a licensed real estate agent. I understand about avoiding fees and wanting to save money, however, there are so many legal issues with real estate in general, not to mention with buying a house form the unknown. Just make sure you have the home inspected VERY well and have a good reputable Title company handling your acct etc. BE CAREFUL! Whatever you do DO NOT let them talk you into vuying the house WITHOUT a title company, then you really need to beware.

The beave · 01-16-2007, 11:33 AM

It would be in your best interest to contact a Real Estate attorney and have them execute the contract for you. The fee should be very modest compare to a real estate commision.

kawgpz550 · 01-16-2007, 01:31 PM

Quote:

Originally Posted by The beave

It would be in your best interest to contact a Real Estate attorney and have them execute the contract for you. The fee should be very modest compare to a real estate commision.

That's true, I really didn't think of that. Just better to be safe than sorry. Should have someone involved that can watch you back. Every state is different, thus real estate laws are different etc.
Maybe not as much to worry about in Texas as there is here where I live in Arizona...you can't trust anyone!
Good advice Beave!

Ellen K · 01-17-2007, 08:17 AM

I think buying a house without any representation would be a very bad idea unless you have bought and sold real estate in Texas before. How do you know what the home is worth and what closing expenses are expected to be paid by the seller? Even with the best intentions things can go very wrong. I would stongly suggest you be represented and it is unusual for a seller to refuse to negotiate the closing costs and real estate expenses. Perhaps they have something to hide?

jabuff · 07-10-2009, 11:35 AM

I agree w/The Beave. In Texas, a real estate attorney could be your best friend. They can help with paperwork. Another ally in a real estate deal is a Title company. For a few hundred dollars (normally), they can conduct a Title search for you. You want to be CERTAIN that the Title is clear, or the hurdles to get there are identified. As far as RE agents, normally a seller's realtor and a buyer's realtor may split a 5%-6% commission, but if you found the house you certainly should not have to pay at least 1/2 the commission. Hope that helps!

inthecut · 07-10-2009, 11:42 AM

Happened to me as an agent when I first started selling....after I felt bad for a day, I moved on and quickly forgot about it.....I'm sure agents are aware of that happening sometimes...
Again, a certificate would be nice, especially if it would make YOU feel better.

kittymama · 07-10-2009, 11:59 AM

I don't know about Texas yet, but in Alaska, the Title companies have the Earnest Money Agreement forms. If you buy a FSBO, you can walk into the title company you want to use and get the appropriate form and the contract pretty much lays out the deadlines for home inspections, Megan's law (checking the area for registered sex offenders), closing costs usually paid by seller and usually paid by buyer, and title company fees and how you get your earnest money back (if the home inspector turns up something nasty or it didn't appraise for the contract price, for instance). If you are satisfied with the house and the price, you probably don't need a real estate agent. I would be up front and honest with your agent, thank her for her time, give her a gift of appreciation and a handwritten note and let her know that you found a house and won't be taking up more of her time, but that if you need a realtor in the future, you would be happy to go with her. If you didn't sign a contract that said you would be obligated to pay her a commission in any deal if the seller didn't (and since she didn't find the house, that might be dubious, though I understand if you walked into another realtor's open house and wanted to buy, she would still be your realtor), I wouldn't feel obligated to pay her one.

But I would start by walking into the title company and seeing if they have such a form. The only real difference between the title company earnest money form and a realtor earnest money form in Alaska is the added 4 pages that describe who the realtor is working for in the deal and how commission will be be paid to the realtor. The rest of the form is the same. They are pre-printed at the title company. You can take them to your bank and give them to your loan officer. And even if you're paying cash, getting an appraisal, home inspection, and doing the appropriate title searches is worth the money.

I'm not saying that realtors are useless, but at the same time, if you find the perfect house FSBO, don't walk away.

Pfhtex · 07-10-2009, 12:18 PM

You don't owe anybody anything.

You owe YOURSELF and YOUR FAMILY the opportunity to own the home you want. So, if the realtor had been riding in the car, and YOU saw the FSBO house that YOU want, you think it's somehow fair to have to pay the realtor 3%???

No. It's not. This is business, it's not personal. The realtor deserves nothing.

Just get a Licensed Inspector to inspect the house, use that inspection to make your decision and to drive down the price.

Chances are the seller is in a tight situation if they are FSBO-ing and don't want to pay a buyer's agent. They are probably looking to short-sell the home, or sell it for the payoff + title policy cost.

You have SO MUCH more room to negotiate seller paid closing costs, etc., without a realtor sticking both fists into the pie.

You can do this!!