For Sale By Owner HOUSE- Advice Please

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jbird11
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For Sale By Owner HOUSE- Advice Please

Postby jbird11 » Mon Jun 19, 2017 12:52 pm

The market in our town is insanely hot. They can't keep houses on the market. A realtor friend told me that there's less than a 7 day supply of homes in a couple price categories... I trust him, he sold both my previous 2 houses for our full asking price in 4 days and 10 days.

The people that just moved in next to us, purchased the day it was listed & before they even listed theirs, then the next day they listed theirs and sold for full price in 12 hours.

So, hearing how hot the market was, I put our house on Zillow for a 'make me move' price for $90K more than we paid 2 years ago. I had 5 people request viewings in the first 2 weeks. Last night, we received a full price offer with no inspections, no contingencies, etc.

My question is... how hard is it to complete this deal? Do I hire a Realtor and offer them a fixed price to complete the deal (far below the 3%), do I try and find a lawyer to do the deal? Or can I just set this up thru a closing/title company?

Lindrobe
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Re: For Sale By Owner HOUSE- Advice Please

Postby Lindrobe » Mon Jun 19, 2017 12:54 pm

Just hire a real estate attorney to write up a contract for you. I bought a piece of lakefront land by owner a few months ago and paid $300 to a real estate attorney to have the deal wrote up. Our realtor wanted 1% of the sales price to write up the offer, which would have been about $3,000. So, it was much cheaper to have deal wrote up by attorney.

Lindrobe
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Re: For Sale By Owner HOUSE- Advice Please

Postby Lindrobe » Mon Jun 19, 2017 12:56 pm

Just saw your last question...after you have a signed contract, take the contract to a local title company to process. They will do all the title work and closing for you.

Carefreeap
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Re: For Sale By Owner HOUSE- Advice Please

Postby Carefreeap » Mon Jun 19, 2017 3:23 pm

Is the buyer getting a loan? If so, be prepared for the closing to take a while. You are going to want some assurances that the people can actually qualify for a loan and not tie up your property.

Do you understand what disclosures your state requires for a sale?

I'm in the process of selling my mother's condo to people I know. They are well qualified with great credit. We've had a couple of hiccups in the transaction including having to switch lenders and a long delay due to an issue with the obtaining IRS transcripts given the hacking of SS numbers for employees of Office of Personnel Management and Department of Defense. What should have been a 30 day transaction is stretching into 45 days.

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jfn111
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Re: For Sale By Owner HOUSE- Advice Please

Postby jfn111 » Mon Jun 19, 2017 3:46 pm

For a full price offer, with no contingencies, I agree with hiring a RE Attorney.

retiredjg
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Re: For Sale By Owner HOUSE- Advice Please

Postby retiredjg » Mon Jun 19, 2017 3:47 pm

Different states require different things. For example some require an attorney for every closing. Become familiar with what your state requires.

I did a FSBO without even listing my house a few years ago. There were generic forms on the internet for my state (contract, disclosures, etc.) I believe it was a title company that handled all the paperwork. I got some guidance a dummies book from Amazon but mostly we just used common sense. The buyers and I had several friends in common so we each knew the other was trustworthy.

The closing still costs about the same. What you are saving is the real estate agent's fees and that can be several thousand dollars.

My sale went without a hitch. The buyers got a screaming deal because of the many thousands of dollars I did't have to pay to an agent. They knew they were getting a deal so didn't ask for anything on the few small items found on the inspection.

One thing to expect, you may be contacted by a buyer's agent who will want some payment for bringing you a client. Don't let this surprise you and have some idea of what you want to do if that happens. I didn't have this - my prospective buyers contacted me directly so there was no agent involved at all.

Copper John
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Re: For Sale By Owner HOUSE- Advice Please

Postby Copper John » Mon Jun 19, 2017 5:38 pm

retiredjg wrote:Different states require different things. For example some require an attorney for every closing. Become familiar with what your state requires.

I did a FSBO without even listing my house a few years ago. There were generic forms on the internet for my state (contract, disclosures, etc.) I believe it was a title company that handled all the paperwork. I got some guidance a dummies book from Amazon but mostly we just used common sense. The buyers and I had several friends in common so we each knew the other was trustworthy.

The closing still costs about the same. What you are saving is the real estate agent's fees and that can be several thousand dollars.

My sale went without a hitch. The buyers got a screaming deal because of the many thousands of dollars I did't have to pay to an agent. They knew they were getting a deal so didn't ask for anything on the few small items found on the inspection.

One thing to expect, you may be contacted by a buyer's agent who will want some payment for bringing you a client. Don't let this surprise you and have some idea of what you want to do if that happens. I didn't have this - my prospective buyers contacted me directly so there was no agent involved at all.


+1

I sold my condo without an agent in Massachusetts and lawyers are required to be involved with real estate closings there. My lawyer provided me with the state required forms and did the closing. The buyer did not have an agent and therefore no realtor fees were incurred.

When I bought my new place in Colorado no lawyers were involved in the closing. Lawyers are not required in real estate transactions there and generally are not involved in residential closings. My buyers agent and the title company handled the closing.

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boomer
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Re: For Sale By Owner HOUSE- Advice Please

Postby boomer » Mon Jun 19, 2017 6:10 pm

Lindrobe wrote:Just saw your last question...after you have a signed contract, take the contract to a local title company to process. They will do all the title work and closing for you.

This works in Utah.

texasdiver
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Re: For Sale By Owner HOUSE- Advice Please

Postby texasdiver » Mon Jun 19, 2017 9:14 pm

My experience having bought and sold 4 houses over the past decade is that the title companies do 90% of the transactional work, not the real estate agents. This was in Alaska, Texas, and Washington.

We used an agent to sell our last house because we had a very narrow window of time to get it sold as we were moving and needed the equity for purchase of the new home across the country. I didn't want anything to go crosswise. And as I was working full time up until the day before we moved I didn't have time to mess with marketing.

In other circumstances I'd have done a FSBO.

friareye
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Re: For Sale By Owner HOUSE- Advice Please

Postby friareye » Mon Jun 19, 2017 9:31 pm

I sold a house FSBO in NH, all we needed was a title company.
Agree above, no point in giving away money to a realtor if they did no work.
You listed, have an offer. Move forward.
Just make sure the buyer can prove assets (or proof of lending) before getting under contract, otherwise you lose out on potential buyers as they slow things down waiting for approvals/coming up with the cash.

pshonore
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Re: For Sale By Owner HOUSE- Advice Please

Postby pshonore » Tue Jun 20, 2017 8:20 am

friareye wrote:I sold a house FSBO in NH, all we needed was a title company.
Agree above, no point in giving away money to a realtor if they did no work.
You listed, have an offer. Move forward.
Just make sure the buyer can prove assets (or proof of lending) before getting under contract, otherwise you lose out on potential buyers as they slow things down waiting for approvals/coming up with the cash.

That's not quite how it works - most real estate contracts (unless its a cash deal) contain a financing contingency.

Now in CT, there is no such thing as a title company. Most real estate closings are handled by a local attorney under contract to the mortgage lender.The attorney prepares the required paperwork, records the deed, and disburses the funds, etc. It can be a lucrative sideline.

I don't believe an attorney is technically required in a cash deal (although any buyer or seller who tries that on their own without an attorney or an agent is just being foolish.)

bsteiner
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Re: For Sale By Owner HOUSE- Advice Please

Postby bsteiner » Tue Jun 20, 2017 8:38 am

The broker's job is to find a buyer. Since you've already found a buyer, you shouldn't need a broker.

The procedures for real estate transactions vary considerably from state to state, and sometimes within a state.

LarryAllen
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Re: For Sale By Owner HOUSE- Advice Please

Postby LarryAllen » Tue Jun 20, 2017 8:47 am

I would hire a lawyer who has done residential real estate transactions. I would ask for a flat fee quote.

Gropes & Ray
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Re: For Sale By Owner HOUSE- Advice Please

Postby Gropes & Ray » Tue Jun 20, 2017 8:59 am

Sometimes you can find an attorney who has a closing company as part of his business. That would be your best bet. But you do need a closing company to get the title insurance, which the buyer's lender will require. It should not be hard to find an attorney to look over everything for a flat fee.

bogglizer
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Re: For Sale By Owner HOUSE- Advice Please

Postby bogglizer » Tue Jun 20, 2017 9:11 am

I just did FSBO in California (closed Friday). I only used an escrow company.

miles monroe
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Re: For Sale By Owner HOUSE- Advice Please

Postby miles monroe » Tue Jun 20, 2017 9:17 am

friareye wrote:Just make sure the buyer can prove assets (or proof of lending) before getting under contract, otherwise you lose out on potential buyers as they slow things down waiting for approvals/coming up with the cash.


i made a cash offer on a house (which ultimately failed inspection but that's a whole nother story) and i was asked to provide proof that i had the funds. a copy of a couple vanguard statements (with account numbers blacked out) was satisfactory.

WhyNotUs
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Re: For Sale By Owner HOUSE- Advice Please

Postby WhyNotUs » Tue Jun 20, 2017 10:42 am

Typically the buyer prepares a contract with an offer, you can hire a RE attorney to help you review and accept or counter. After acceptance it goes to a title company for closing prep. Have attorney look at title commitment and closing docs before closing.
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wfrobinette
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Re: For Sale By Owner HOUSE- Advice Please

Postby wfrobinette » Tue Jun 20, 2017 10:47 am

jbird11 wrote:The market in our town is insanely hot. They can't keep houses on the market. A realtor friend told me that there's less than a 7 day supply of homes in a couple price categories... I trust him, he sold both my previous 2 houses for our full asking price in 4 days and 10 days.

The people that just moved in next to us, purchased the day it was listed & before they even listed theirs, then the next day they listed theirs and sold for full price in 12 hours.

So, hearing how hot the market was, I put our house on Zillow for a 'make me move' price for $90K more than we paid 2 years ago. I had 5 people request viewings in the first 2 weeks. Last night, we received a full price offer with no inspections, no contingencies, etc.

My question is... how hard is it to complete this deal? Do I hire a Realtor and offer them a fixed price to complete the deal (far below the 3%), do I try and find a lawyer to do the deal? Or can I just set this up thru a closing/title company?


Not to be nosy, but where are you going to live after the house is sold? You also have to worry about appraisal coming in at the 90k more.

nova1968
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Re: For Sale By Owner HOUSE- Advice Please

Postby nova1968 » Tue Jun 20, 2017 11:00 am

Just beware once the house is advertised you will have plenty of Real Estate Agents calling and wanting you to list the house with them.
As previously stated make sure you have an Attorney review the terms of the sale.

Ruger
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Re: For Sale By Owner HOUSE- Advice Please

Postby Ruger » Tue Jun 20, 2017 12:20 pm

When we sold our home FSBO, we purchased the contract from a place that sold legal forms and took it to a title company.
No problems what so ever.
However, are you sure you have your home priced appropriately? How did you come up with a valuation? And is it possible
you have listed it for less than it's truly worth?

mayday23
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Re: For Sale By Owner HOUSE- Advice Please

Postby mayday23 » Tue Jun 20, 2017 12:36 pm

jbird11 wrote:So, hearing how hot the market was, I put our house on Zillow for a 'make me move' price for $90K more than we paid 2 years ago. I had 5 people request viewings in the first 2 weeks. Last night, we received a full price offer with no inspections, no contingencies, etc.


Sounds like you underpriced. I'd get out of the deal and price it for more.

michaeljc70
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Re: For Sale By Owner HOUSE- Advice Please

Postby michaeljc70 » Wed Jun 21, 2017 4:04 pm

I've sold homes 3 times myself. The person buying the home should give you a signed contract. Typically it is a standardized contract for your state. You just have to give it to your attorney (who should specialize in real estate closings) and let them handle it. You'll have to be there or have someone give access if they need to do an appraisal, the final walk-through, etc. The attorney should handle just about everything else. Attorneys that do this kind of work typically charge a flat rate for the deal. I think around $500-$700 in Chicago where I Live.

jbird11
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Re: For Sale By Owner HOUSE- Advice Please

Postby jbird11 » Thu Jun 22, 2017 2:22 pm

Thanks for all the replies--- very interesting thoughts.

If it helps, this deal is happening in South Dakota.

I've consulted a Real Estate Lawyer (referral from friend). He said, " yeah, I could do this for you for around $500, or you could just go to the SD website, print the form, have the buyers fill it out to your satisfaction and then have a closing company finish up the transaction."

As far as it being underpriced as someone mentioned, it's 2 years old, upstairs only finished for $242.50 sq ft. I would say that's top of market.

They don't have a buyers realtor, the offer states no buyer or sellers commissions paid.

I've asked them to pay 100% of closing costs, plus the survey & inspections & appraisal at their choice...but none of them can affect the closing. (ie- if the appraisal comes in $20K under, they would need to pay that difference to satisfy the bank.)

Here's the link to the PA if anyone wanted to take a look
http://dlr.sd.gov/realestate/forms/purc ... eement.pdf


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