Comments on: Pitfalls of Buying “For Sale By Owner”

By: Mike

Mike — Fri, 14 Aug 2009 20:40:20 +0000

Whether an FSBO or agent assisted sale, always have a real estate lawyer review your contracts. Real estate agents are not lawyers and few truly understand their boilerplate contracts. I have never paid over $300 in legal fees for reviewing contracts and it is money well spent. If you run into a legal problem after the sale, an agent has no liability for problems with the contract.

If your a considering an FSBO, call several real estate lawyers and find out how much it will cost for them to coordinate the entire transaction. You will likely be surprised how much cheaper and more efficient the who process is.

By: Illusion-of-the-Mind

Illusion-of-the-Mind — Sun, 25 Sep 2005 15:41:12 +0000

Jim,

I’ve never bought a FSBO, but if you find a great home, priced right, why not !! Protect yourself by getting a certified home inspector to inspect and bring a (3) general contractors to look at any repairs that need to be completed after receiving your home inspection.

Use the inspectors report to shave off thousands of dollars of legitamite, proven deficiencies. Have a Real Estate atty review the contract, and proceed.

I like the idea of getting the Owner to split the difference with you as-if-a-comission was being paid.
It’s a win-win ( and no middle man)!

By: jim

jim — Wed, 14 Sep 2005 12:44:50 +0000

You do save a considerable amount of money going with a FSBO but if you didn’t have a good friend who was a (good) broker, it’s incredibly daunting (especially to a first time home buyer). The money saved is in the reduction of the commissions and how much the seller is willing to pass along to you. In your case, I don’t know how much $20K is, as a percentage of the value; but I do know anytime you can save $20K you’re coming out a winner.

I’m glad the first comment is a positive FSBO because it’s definitely an option, just a stressful one without the proper guidance.

By: Hazzard

Hazzard — Wed, 14 Sep 2005 03:15:17 +0000

I purchased my home from someone without an agent on either side. I did have the luxury of a good friend who was a broker. He gave me all the electronic forms to fill out and gave me a few tips. When it was all said and done, I wrote up an offer that was fair, but I also:

-Negotiated a lower price than current market value by agreeing to split the commission the buyer would have paid. My rationale with the buyer was that I was taking a risk, and so was he. The buyer agreed to split the potential commission.

After buying the house, I realized what a great deal I had gotten. I bought the house for 20K below market, in fact the appraisal came in significantly higher when I got my loan. All this being said, I would say that it was still stressful. Once we agreed on the sales contract, it got a lot easier. We both took the documents to escrow and it was fairly smooth sailing from there.

Hazzard