Fsbo (for sale by owner, real estate, loan)

[luvmyguys]

We might be making an offer on a FSBO house. Can anyone educate me on this process? Do we just write up the offer on the form "contract to purchase" or do we need to have an Attorney write up some other sort of paperwork? We have never done FSBO before so we want to make sure we dont do the wrong thing,.

[autumngal]

Originally Posted by luvmyguys

We might be making an offer on a FSBO house. Can anyone educate me on this process? Do we just write up the offer on the form "contract to purchase" or do we need to have an Attorney write up some other sort of paperwork? We have never done FSBO before so we want to make sure we dont do the wrong thing,.

It would be wisest on your part to have a real estate attorney on your side looking over everything and preparing everything for you, and of course protecting your best interests,

[102294]

I've done for sale by owner myself and actually my buyer just called me told me what they wanted to offer and we agreed to everything on the phone, then we had an attorney draw up the papers the next day with everything we had agreed to and split the cost. Everything went perfectly. I'm only suggesting this because you don't want to go spend 500 - 1000 dollars on an attorney only to find out the buyer won't accept your price or conditions or maybe already has an offer.

[toot68]

We bought our home through a FSBO. Ask the seller to fill out a disclosure. Write up a contract (I'd strongly suggest using the NC standard offer to purchase). You can find forms for both online (the disclosure is easy to find, the contract is tougher).

If the contract is accepted, you'll need to determine where the earnest money will be held. Line up the inspections, financing, appraisal, survey if needed. You'll also need to get an attorney for the closing, who will do the title search etc. Our loan guy recommended several to us.


Once you've agreed on a contract, then you can

[VickiR]

If you've been working with a Realtor, allow her to contact the sellers.

In most cases, FSBOs will pay 2.4% to the selling agent. Yes, its more work for the agent but most are willing to do that to help their buyers buy the home they want AND at least the agent gets something for all the hours of driving you around and showing you homes.

The advantage of having your agent is that she will still make sure the transaction gets to closing.

Vicki

[Wanna Leave Penciltucky]

For every happy happy joy joy FSBO or with a realtor story I hear, I also hear a "OMG WE GOT RIPPED OFF" story. Hire your own attorney and make sure you get an independent inspection aside of the bank from a certified home inspector and make the contract contigent on the outcome by your approval. An attorney cannot represent both of you without your permission, which means you spread the loyalty of the attorney out. Focus on your interests and not that of someone trying to save a grand. It burns my bacon when someone in order to save a grand will throw your interests to the wind and act like a selfish @$&%. Your house is a big investment do not go cheap. Cheap can be EXPENSIVE!

Originally Posted by 102294

I've done for sale by owner myself and actually my buyer just called me told me what they wanted to offer and we agreed to everything on the phone, then we had an attorney draw up the papers the next day with everything we had agreed to and split the cost. Everything went perfectly. I'm only suggesting this because you don't want to go spend 500 - 1000 dollars on an attorney only to find out the buyer won't accept your price or conditions or maybe already has an offer.

[MikeJaquish]

1. You can write a binding contract on an old shopping bag, the deed on the back of an envelope, and settle it all in court, if you want to go cheap up front. Gets costly and time-consuming later.


2. The North Carolina Association of REALTOR's "Offer to Purchase and Contract" is a proprietary form, the result of a joint effort of the NCAR and the NC Bar Association to expedite real estate transactions. The fact that it can be stolen off the internet does not qualify one to complete it.
Agents, well, GOOD agents, spend a LOT of time in licensing class, continuing education, and ongoing training to understand what Standard Form 2-T does to promote and protect both sides of the transation.

3. An attorney can put together the sales agreement, so it is explained to you. This attorney can represent you and your interests as your fiduciary. The Seller can seek independent counsel to inform them of the ramifications of the proposed contract.
Every transaction is different, and should be approached that way.
That is different from a Closing Attorney, who often is not really offering legal representation.


Good Luck!

[autumngal]

I do know of "some" FSBO sales that have hired a Realtor with their brokers agreement to be a fascilatator in doing the paperwork. And in these cases the charge was a couple hundred dollars. But in the end they also each had an attorney.
You can't go wrong having an attorney on your side with a huge investment like this,

[beckycat]

I know someone who is a realtor and she offered to do all the paperwork for $500. That way they can guide you what to do and all the paperwork gets done correctly. At the end we had a title company do the rest. Good luck!

[MAtoNC!]

In NC or MA? If you post on the MA forum maybe you could get specifics of the real estate laws in MA. I bought a FSBO house. But my agent found the house and brought us to it. So I can't really give you any specifics.