Found an FSBO home for sale. How to avoid Realtor?

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sunny_socal
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Found an FSBO home for sale. How to avoid Realtor?

Post by sunny_socal » Thu Jun 07, 2018 9:16 am

Hi all,

I'm moving soon and will be shopping for a house this weekend. We have a couple days set aside with a realtor, everything has been arranged already in terms of when we'll meet. However we won't be meeting our realtor for another couple days, nothing has been signed.

But now I found a house that didn't fall into our original search but seems completely acceptable. And it's an FSBO (for sale by owner.) Presumably I could just approach the owner and buy this house without a middle man. Right?

However I don't know how to proceed. I suspect that once we start 'working' with the realtor any house we find will somehow be claimed by them. They'll want a finders fee (2-3% of sale price.)

What to do? Email the owner privately and see if we can view the house? Maybe make a deal before even looking at the others?

Beach
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Beach » Thu Jun 07, 2018 9:22 am

You can, but as a buyer you aren't paying for the realtor's services so it doesn't make a lot of sense. The seller will be paying your realtor fee.

Jack FFR1846
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Jack FFR1846 » Thu Jun 07, 2018 9:24 am

If the sellers have no agreement with a real estate agent, there's no commission on the table. We bought 2 houses from sellers selling by owner. Typically, buyers don't sign anything with an agent (I'm not talking about a contracted buyer's agent).

In negotiations, you can certainly get a better deal compared with having a seller who knows they're going to have to pony up 6% of the sale price.

Go for it. We paid the bank's lawyer to also represent us at the closing, so it ended up being really cheap (a few hundred dollars). We also went with the lawyer when he did the title search. He pointed out fun things like protective covenants drawn up in the 60's and what the land parcel fell under when granted by the king.
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sjt
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by sjt » Thu Jun 07, 2018 9:33 am

sunny_socal wrote:
Thu Jun 07, 2018 9:16 am


However I don't know how to proceed. I suspect that once we start 'working' with the realtor any house we find will somehow be claimed by them. They'll want a finders fee (2-3% of sale price.)

What to do? Email the owner privately and see if we can view the house? Maybe make a deal before even looking at the others?
Email the owner and request to view the house. We recently sold FSBO to someone without a realtor, and it went great. We also offered the standard commission to a buying realtor, but the offer without was stronger and we didn't need to shell out the commission upon the sale.

However, without a realtor, you'll need to arrange for the inspection yourself, appraisal, contract paperwork, etc. In my opinion, realtors and attorneys have purposefully made this more complicated than it needs to be in order to collectively benefit themselves. Find a lawyer that can help with the paperwork and talk with the seller about working with you without a realtor and that it may be a slightly bumpier process.
"The one who covets is the poorer man, | For he would have that which he never can; | But he who doesn't have and doesn't crave | Is rich, though you may hold him but a knave." - Wife of Bath tale

dcabler
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by dcabler » Thu Jun 07, 2018 9:39 am

We bought our current house directly from the owner. It turned out to be friends of ours, so we already knew the house and we managed to run in to them just before they contracted with a real estate agent. In our case, we assumed a VA loan that they had way back in 1990. Here in TX, no attorneys are required - closing handled by a title company. Same thing when you refinance. Seems to be an hour of signing about 100 documents each time we've done it. :D

anonsdca
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by anonsdca » Thu Jun 07, 2018 9:44 am

Beach wrote:
Thu Jun 07, 2018 9:22 am
You can, but as a buyer you aren't paying for the realtor's services so it doesn't make a lot of sense. The seller will be paying your realtor fee.
This is not true. Seller will increase the price of the house to cover those costs so the buyer is most definitely paying.

barnaclebob
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by barnaclebob » Thu Jun 07, 2018 9:44 am

If you don't use a realtor you'll be able to either offer 2-3% less for the equivalent of someone with a realtor if the seller is paying realtor commissions or you can offer the same as everyone else but not have to pay a realtor yourself if the seller isn't paying commissions.

anonsdca
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by anonsdca » Thu Jun 07, 2018 9:47 am

sjt wrote:
Thu Jun 07, 2018 9:33 am
sunny_socal wrote:
Thu Jun 07, 2018 9:16 am


However, without a realtor, you'll need to arrange for the inspection yourself, appraisal, contract paperwork, etc. In my opinion, realtors and attorneys have purposefully made this more complicated than it needs to be in order to collectively benefit themselves. Find a lawyer that can help with the paperwork and talk with the seller about working with you without a realtor and that it may be a slightly bumpier process.
His loan officer will have contacts for all of these services and can help arrange. No need for a realtor for these things.

onourway
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by onourway » Thu Jun 07, 2018 9:50 am

anonsdca wrote:
Thu Jun 07, 2018 9:44 am
This is not true. Seller will increase the price of the house to cover those costs so the buyer is most definitely paying.
Agent has a great deal of influence in setting the listing price. Further, studies have shown that realtors typically price client houses a bit under market because it increases turnover rate. It's better for the realtor to sell your house in 2 weeks for $20k less than they could get if it took 6 weeks.

In our neighborhood agents routinely under-price housing by 10-15%. And houses sell within days. Because of this we will likely do FSBO when we sell. We can wait that 6 weeks to get full price and not have to pay commission on top. I doubt we'll have to wait even that long though.

retiredjg
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by retiredjg » Thu Jun 07, 2018 9:55 am

In the past when I have used a real estate agent, I have specified a house (or two) that I am still considering thatI have found on my own that would be excluded from their involvement. I think this is standard contract stuff, but they don't mention it unless you ask.

Real estate customs and laws are very local. Find out about your area. This may not exist where you live.

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sunny_socal
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by sunny_socal » Thu Jun 07, 2018 10:10 am

Updates:

1. I filled in the Zillow "I'm interested in this home" form and 5 minutes later a Realtor called me. (WTH!) Turns out various agents have paid to attach themselves to listings on Zillow regardless of how they are being sold (ie. through an agent or FSBO) This agent said he'd be expecting 3% of the sales price as his commission and was unwilling to discuss any kind of split (eg. 50/50 on his commission)
2. Called the seller directly since their phone number was actually buried within the zillow page, at the very bottom. The seller is indeed offering 3% to a buyer's agent but they don't really care where that money goes. They are open to doing a direct deal but someone would still need to take care of the paperwork.

We're coming from out of town for only one weekend and will be unable to monitor the process ourselves. We'll definitely need an agent of some kind. At this point perhaps the best I can hope for is some kind of split.

adamthesmythe
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by adamthesmythe » Thu Jun 07, 2018 11:06 am

I am not a lawyer. But my understanding is that you do not owe an agent unless he is the "procuring cause." If you have no contract with the agent, and the agent was not involved in locating or viewing the home, then I suspect you owe him nothing.

Having said that- if you don't know all the processes and pitfalls involved in buying a house in your area, it would be unwise to avoid involving people who know how to do this.

You might be able to strike a deal with your current agent to guide you through the process for less than 3% on this particular property.

Beach
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Beach » Thu Jun 07, 2018 11:11 am

anonsdca wrote:
Thu Jun 07, 2018 9:44 am
Beach wrote:
Thu Jun 07, 2018 9:22 am
You can, but as a buyer you aren't paying for the realtor's services so it doesn't make a lot of sense. The seller will be paying your realtor fee.
This is not true. Seller will increase the price of the house to cover those costs so the buyer is most definitely paying.
If they try to increase the price to cover, the appraisal may come back too low and the bank won't loan the money unless a reduction in price is agreed upon. It is true, you may "pay" for it in increased cost of the home but you might also really "pay" for it if the deal goes south.

anonsdca
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by anonsdca » Thu Jun 07, 2018 11:28 am

Beach wrote:
Thu Jun 07, 2018 11:11 am
anonsdca wrote:
Thu Jun 07, 2018 9:44 am
Beach wrote:
Thu Jun 07, 2018 9:22 am
You can, but as a buyer you aren't paying for the realtor's services so it doesn't make a lot of sense. The seller will be paying your realtor fee.
This is not true. Seller will increase the price of the house to cover those costs so the buyer is most definitely paying.
If they try to increase the price to cover, the appraisal may come back too low and the bank won't loan the money unless a reduction in price is agreed upon. It is true, you may "pay" for it in increased cost of the home but you might also really "pay" for it if the deal goes south.
This is true and since the OP said they don't live in the area, I would never try this without help of some kind. I still stand by my assertion that the buyers realtor fee is simply a pass through on the price of the house and the buyer is paying indirectly.

BogleMelon
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by BogleMelon » Thu Jun 07, 2018 11:42 am

+1 to a lawyer
-1 to a salesman (AKA realtor)
The first earned a 4 years degree in a complicated field, and will add value. The second is only as good as finding the right home. If the OP already found it or can find it himself then no need to have a realtor. realtors don't get any complicated studies and most of what they do can be DIY'ed.

Disclaimer: Haven't bought a home, but that is probably what I will do if I bought one day.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

pshonore
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by pshonore » Thu Jun 07, 2018 12:40 pm

Another typical RE thread with lots of opinions by people who have never been Realtors and don't understand the game. Enough of that. One BIG problem of buying from a FSBO is you have no idea how they priced the house. It could be 10% high (or 10% low). I'd seriously consider paying for an appraisal before I made an offer unless you have detailed knowledge of the local market with comps, etc.

anonsdca
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by anonsdca » Thu Jun 07, 2018 1:14 pm

pshonore wrote:
Thu Jun 07, 2018 12:40 pm
Another typical RE thread with lots of opinions by people who have never been Realtors and don't understand the game. Enough of that. One BIG problem of buying from a FSBO is you have no idea how they priced the house. It could be 10% high (or 10% low). I'd seriously consider paying for an appraisal before I made an offer unless you have detailed knowledge of the local market with comps, etc.
You do not need to be a realtor to know they are just about useless. All you have had to do is deal with them on several purchases of properties. Your lender (if he is good) can supply the comps just as easily as an agent. Your lender is the most important person in a real estate transaction. If they are good and willing to help, they can point you to the proper resources.

Jack FFR1846
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Jack FFR1846 » Thu Jun 07, 2018 1:34 pm

sunny_socal wrote:
Thu Jun 07, 2018 10:10 am

We're coming from out of town for only one weekend and will be unable to monitor the process ourselves. We'll definitely need an agent of some kind.
Why?

If you have a FSBO lead, contact them directly. Go see the house. If you decide to buy it, get a standard purchase and sale agreement, fill it out with the seller. Get your mortgage set up. Look for inspector reviews, find a good one and hire them. Follow them as if you're an apprentice all around the house. Depending on the state, use the bank's lawyer or no lawyer or title company or whatever and close the deal.

Next: If you're coming in from out of town for a house hunting trip, then by all means use a real estate agent to go look at other houses. If this one is brought up, just say you're not interested...what else is there.

I've talked about the house hunting trip my wife and I had some years ago. We flew in on Sunday, went through everything 3 agents in a row had and by Tuesday morning, we had found the house, put in the offer and it was accepted. We saw at least 75 houses. We then literally drove out to Williamsburg, VA and spent the rest of our house hunting week at Busch Gardens and Colonial Williansburg.

(we've purchased 2 houses from owner with no agent involved)
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by barnaclebob » Thu Jun 07, 2018 2:06 pm

pshonore wrote:
Thu Jun 07, 2018 12:40 pm
Another typical RE thread with lots of opinions by people who have never been Realtors and don't understand the game. Enough of that. One BIG problem of buying from a FSBO is you have no idea how they priced the house. It could be 10% high (or 10% low). I'd seriously consider paying for an appraisal before I made an offer unless you have detailed knowledge of the local market with comps, etc.
Nonsense. Finding comps is as easy as clicking the "recently sold" button on zillow or redfin.

Miakis
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Miakis » Thu Jun 07, 2018 3:27 pm

A title company can generally give you a lot of guidance on a FSBO. They're not going to advise you on how to make an offer or pricing, but they can walk you through how to execute the actual sale and what is commonly done with a FSBO.

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steve50
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by steve50 » Thu Jun 07, 2018 3:43 pm

Check what your contract with Realtor says. Ask them to add a a clause that if you find, on your own, you are not responsible for paying them any commission.

You do not need a Realtor or a lawyer to buy FSBO house. The title company is all you need and they will handle all the paper work for you. I have made purchases and sold property without Realtor/Lawyers so from both side, the process is very easy.

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midareff
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by midareff » Thu Jun 07, 2018 3:50 pm

sunny_socal wrote:
Thu Jun 07, 2018 9:16 am
Hi all,

I'm moving soon and will be shopping for a house this weekend. We have a couple days set aside with a realtor, everything has been arranged already in terms of when we'll meet. However we won't be meeting our realtor for another couple days, nothing has been signed.

But now I found a house that didn't fall into our original search but seems completely acceptable. And it's an FSBO (for sale by owner.) Presumably I could just approach the owner and buy this house without a middle man. Right?

However I don't know how to proceed. I suspect that once we start 'working' with the realtor any house we find will somehow be claimed by them. They'll want a finders fee (2-3% of sale price.)

What to do? Email the owner privately and see if we can view the house? Maybe make a deal before even looking at the others?

You need a alwyer for title search, title insurance and such not to mention a sales contract, need for an escrow account and so forth. Should be easy to find.

bberris
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by bberris » Thu Jun 07, 2018 7:49 pm

Beach wrote:
Thu Jun 07, 2018 9:22 am
You can, but as a buyer you aren't paying for the realtor's services so it doesn't make a lot of sense. The seller will be paying your realtor fee.
And yet the money must come from somewhere. The seller is a charitable person. The seller could sell without paying the buyer's commish, but he would rather donate some of it to another buyer who has an agent.

audioaxes
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by audioaxes » Thu Jun 07, 2018 8:08 pm

thats how I bought my current primary residence. Contacted seller-owner directly (who was a real estate agent) for a showing, did an informal offer via where I detailed how I arrived to it: my perceived value of the property (which was less than the listing price) - 2.5% in the form of both closing cost credit and additional lower purchase price.

criticalmass
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by criticalmass » Thu Jun 07, 2018 11:56 pm

midareff wrote:
Thu Jun 07, 2018 3:50 pm
sunny_socal wrote:
Thu Jun 07, 2018 9:16 am
Hi all,

I'm moving soon and will be shopping for a house this weekend. We have a couple days set aside with a realtor, everything has been arranged already in terms of when we'll meet. However we won't be meeting our realtor for another couple days, nothing has been signed.

But now I found a house that didn't fall into our original search but seems completely acceptable. And it's an FSBO (for sale by owner.) Presumably I could just approach the owner and buy this house without a middle man. Right?

However I don't know how to proceed. I suspect that once we start 'working' with the realtor any house we find will somehow be claimed by them. They'll want a finders fee (2-3% of sale price.)

What to do? Email the owner privately and see if we can view the house? Maybe make a deal before even looking at the others?

You need a alwyer for title search, title insurance and such not to mention a sales contract, need for an escrow account and so forth. Should be easy to find.
A title company can handle these. Many states do not require an attorney. However, separately from title company, I recommend hiring an attorney to review contracts. Also beware the title insurance scam and consider alternatives like Entitle Direct and Redfin’s Title Forward.

pshonore
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by pshonore » Fri Jun 08, 2018 8:00 am

barnaclebob wrote:
Thu Jun 07, 2018 2:06 pm
pshonore wrote:
Thu Jun 07, 2018 12:40 pm
Another typical RE thread with lots of opinions by people who have never been Realtors and don't understand the game. Enough of that. One BIG problem of buying from a FSBO is you have no idea how they priced the house. It could be 10% high (or 10% low). I'd seriously consider paying for an appraisal before I made an offer unless you have detailed knowledge of the local market with comps, etc.
Nonsense. Finding comps is as easy as clicking the "recently sold" button on zillow or redfin.
I take it you haven't done many appraisals if you think Zillow is a good source of data other than for sale price.

onourway
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by onourway » Fri Jun 08, 2018 8:15 am

pshonore wrote:
Fri Jun 08, 2018 8:00 am
I take it you haven't done many appraisals if you think Zillow is a good source of data other than for sale price.
Which is exactly what you'd use it for in this case...

Pricing a home is not that difficult a proposition if you've lived in the home a bit and paid even a bit of attention to the local market. It's not like agents have some complex proprietary formula they use.

tim1999
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by tim1999 » Fri Jun 08, 2018 8:29 am

As others have said, the title company can handle the title search, escrow process, and settlement. You may wish to have a real estate attorney handle drafting the sale contract and review the title report, but this shouldn't cost you more than a few hundred bucks unless it's a HCOL.

In my experience, the appraiser picks the comps that he/she uses in the appraisal, not the realtor, so I don't see how it matters what data a realtor would have access to.

Unless the buyer is completely clueless or a first time buyer, a realtor adds zero value if the buyer has some business sense.

Also, so long as it appraises appropriately for the lender, it's not the end of the world if you end up paying slightly over the appraised value. I don't understand why people get so hung up on that. A house is not a pound of bananas at the grocery store. People buy houses, paper appraisal reports don't buy houses. If the house is what you want, and you can negotiate a price in reasonable range for the neighborhood, pull the trigger. Who cares if the one on the next block sold for $5,000 less. You aren't buying that one.

pshonore
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by pshonore » Fri Jun 08, 2018 8:34 am

onourway wrote:
Fri Jun 08, 2018 8:15 am
pshonore wrote:
Fri Jun 08, 2018 8:00 am
I take it you haven't done many appraisals if you think Zillow is a good source of data other than for sale price.
Which is exactly what you'd use it for in this case...

Pricing a home is not that difficult a proposition if you've lived in the home a bit and paid even a bit of attention to the local market. It's not like agents have some complex proprietary formula they use.
That's probably true but I thought we were talking about the buyer coming up with a price for the FSBO. I've looked at a lot of Zillow listings and there are just too many errors. Here's an example - Zillow thinks the house I live in sold for $40K in 2004. The problem is I built the house in the 1980s and the "sale price" even back then was much higher

onourway
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by onourway » Fri Jun 08, 2018 8:39 am

pshonore wrote:
Fri Jun 08, 2018 8:34 am
That's probably true but I thought we were talking about the buyer coming up with a price for the FSBO. I've looked at a lot of Zillow listings and there are just too many errors. Here's an example - Zillow thinks the house I live in sold for $40K in 2004. The problem is I built the house in the 1980s and the "sale price" even back then was much higher
As a buyer it's your job to educate yourself well enough on what homes cost in the area you are looking. I don't think past sales prices beyond the past few months are too helpful to a buyer because markets change too quickly. I don't know that I see an issue with a buyer 'not knowing' if a FSBO home is priced right. The buyer will know what other similar homes in the area are being sold for, or have sold for recently (it's a matter of public record - Zillow is not the only place to look this up - just the most convenient). They'll know if the house is in the right ball-park, and from there it's on them to do the legwork. Obviously FSBO is not right for everyone - just like some investors feel like they need an advisor - whether that advisor is of good value in the end or not.

stan1
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by stan1 » Fri Jun 08, 2018 8:41 am

pshonore wrote:
Thu Jun 07, 2018 12:40 pm
Another typical RE thread with lots of opinions by people who have never been Realtors and don't understand the game. Enough of that. One BIG problem of buying from a FSBO is you have no idea how they priced the house. It could be 10% high (or 10% low). I'd seriously consider paying for an appraisal before I made an offer unless you have detailed knowledge of the local market with comps, etc.
Successful FSBO's are not common where I live (large metro area with mostly subdivision houses built between 1920s and now where there is little uncertainty in pricing). They are typically over priced and in the bottom quartile in terms of location, upkeep, construction, and layout. There is often a large gap between what the owner/seller thinks the house is worth and what someone is willing to pay. These sellers blame realtors for showing other houses and buyers for being tools not themselves for over pricing their undesirable house. There seems to be an attitude that if the house is on the market long enough eventually a fool will come along and pay a lot more than comps. When they do sell after a long time on the market my observation is that the seller doesn't get a premium and in fact often I've seen them sold to value/discount buyers (such as investors/flippers). Sure there are exceptions. So much of real estate is local.

As far as comps go yes you can use recent sales and do it yourself. Key is being realistic. Some people are able to do that, others bring emotion to the value of their home and aren't able to objectively evaluate data. Yes you have to be able to filter erroneous data.

barnaclebob
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by barnaclebob » Fri Jun 08, 2018 8:42 am

pshonore wrote:
Fri Jun 08, 2018 8:00 am
barnaclebob wrote:
Thu Jun 07, 2018 2:06 pm
pshonore wrote:
Thu Jun 07, 2018 12:40 pm
Another typical RE thread with lots of opinions by people who have never been Realtors and don't understand the game. Enough of that. One BIG problem of buying from a FSBO is you have no idea how they priced the house. It could be 10% high (or 10% low). I'd seriously consider paying for an appraisal before I made an offer unless you have detailed knowledge of the local market with comps, etc.
Nonsense. Finding comps is as easy as clicking the "recently sold" button on zillow or redfin.
I take it you haven't done many appraisals if you think Zillow is a good source of data other than for sale price.
Appraisals aren't rocket science and they don't factor into pricing a house anyway. Realtors just get a list of recently sold houses with similar specs, sometimes make sure they are of similar condition and then depending on the strategy of the seller they pick a price. The market takes it from there. Anyone who pays $500-$1000 for an appraisal before selling or even making an offer when there are good comps is just lighting money on fire.
pshonore wrote:
Fri Jun 08, 2018 8:34 am
I've looked at a lot of Zillow listings and there are just too many errors. Here's an example - Zillow thinks the house I live in sold for $40K in 2004. The problem is I built the house in the 1980s and the "sale price" even back then was much higher
That would make your house an incredibly poor comp. Zillow and redfin are usually correct for recent sales prices.

criticalmass
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by criticalmass » Fri Jun 08, 2018 9:22 am

Many county or municipal tax assessor websites show comparable sales for a given address. If not, contact them directly for the info. It’s usually fairly accurate. It won’t be perfect, but likely at least as accurate as a commissioned real estate agent expecting a hefty sales commission.

pshonore
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by pshonore » Fri Jun 08, 2018 9:51 am

criticalmass wrote:
Fri Jun 08, 2018 9:22 am
Many county or municipal tax assessor websites show comparable sales for a given address. If not, contact them directly for the info. It’s usually fairly accurate. It won’t be perfect, but likely at least as accurate as a commissioned real estate agent expecting a hefty sales commission.
Actually, I think the actual MLS listing (assuming it sold thru MLS for a comp) is about as accurate as you're going to get; local appraisers would have access to their past appraisals. Tax assessor websites vary greatly in their amount of detail. If you have a unique house, it gets tough

bsteiner
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by bsteiner » Fri Jun 08, 2018 9:53 am

It's up to the seller whether he/she hires a broker. In the original poster's case, the seller is selling the house without a broker. So there's no broker.

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celia
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by celia » Fri Jun 08, 2018 10:13 am

You might want to talk to a local RE agent to find out what the local/state laws require when a house is sold. In California, for example, the seller is required to tell you how close you are to an earthquake fault, nearby environment factors, and noises (some of which you will not hear on a weekend (eg, factories, commuter trains), if anyone died on the property, etc. Although you can buy directly from the owner, if he/she doesn't know about all the required information releases, you may lose out on learning something that might impact your decision.

You are also jumping the gun as you appear to think the seller will sell to you when you haven't even seen the house. He/she may be close to selling to someone else, so you don't want to antagonize the good realtors you may need as you go about purchasing a home.

Carefreeap
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Carefreeap » Sat Jun 09, 2018 6:33 pm

celia wrote:
Fri Jun 08, 2018 10:13 am
You might want to talk to a local RE agent to find out what the local/state laws require when a house is sold. In California, for example, the seller is required to tell you how close you are to an earthquake fault, nearby environment factors, and noises (some of which you will not hear on a weekend (eg, factories, commuter trains), if anyone died on the property, etc. Although you can buy directly from the owner, if he/she doesn't know about all the required information releases, you may lose out on learning something that might impact your decision.

Actually the escrow/title company is required to give out the mandatory environmental/site disclosures. I think it's a CA state law requirement. What the seller might not know is about the Transfer Disclosure Statement (TDS) which is required to be given to the buyer regardless of whether a real estate agent is used. I think that sucker is up to 10 pages now and goes through every repair and past defect with a fine toothed comb.

I sold my La Jolla Shores condo last summer to friends who owned the condo across the hall. Even though our contract was only three pages long, the total amount of disclosure paperwork must have been about 100 pages.

To the OP, I would look at the house and decide if you need professional help with the transaction. I'd be extra cautious about dealing with a FSBO who might be uninformed or less than forthcoming about the property's defects.

Good luck with your hunt!

tmcc
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by tmcc » Sat Jun 09, 2018 8:21 pm

Beach wrote:
Thu Jun 07, 2018 9:22 am
You can, but as a buyer you aren't paying for the realtor's services so it doesn't make a lot of sense. The seller will be paying your realtor fee.
this is a misconception and outright wrong. seller's pricing factors in 6% of their gross for realtor costs. if they know that they won't be incurring 6%, you have much more room to work and negotiate. you're paying realtors out of your purchase price

J295
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by J295 » Sat Jun 09, 2018 8:39 pm

1. To directly answer OP question, which is how to avoid a realtor in this — Simply don’t use one. As a courtesy, call your realtor and tell them you are going to proceed on your own.

2. For those that believe a realtor does not add value, my experience is to the contrary.

3. For those that believe a bank or title company or lawyer can fulfill the same function, my experience is to the contrary.

4. It’s somewhat predictable when someone asks about a service provider on this forum for many posters to indicate that they prefer DIY and the service provider generates no real value. Somethings we are DIY, others we are not. It just depends on your time and skill set.

5. If you are going to buy or sell a home, which could be a transaction in the hundreds of thousands of dollars, or perhaps 1 million or more, it’s a good idea to have a pretty good understanding as to how the local market works and how things are done.

Disclosure: I am a retired lawyer and my wife is a realtor. We can buy and sell houses easily. We can general contract a home renovation. I have no interest in learning how to build a deck, so we are hiring someone to do that for us. You get the idea.

tmcc
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by tmcc » Sat Jun 09, 2018 8:54 pm

realtors are useless middlemen

of all professional services, it is the one I respect the least

Loik098
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Loik098 » Sat Jun 09, 2018 10:00 pm

onourway wrote:
Thu Jun 07, 2018 9:50 am

Agent has a great deal of influence in setting the listing price. Further, studies have shown that realtors typically price client houses a bit under market because it increases turnover rate. It's better for the realtor to sell your house in 2 weeks for $20k less than they could get if it took 6 weeks.

In our neighborhood agents routinely under-price housing by 10-15%. And houses sell within days. Because of this we will likely do FSBO when we sell. We can wait that 6 weeks to get full price and not have to pay commission on top. I doubt we'll have to wait even that long though.
This is fascinating. But, if the agents in your neighborhood are "routinely under-pricing" housing, and they are selling, are they really under-priced? How do you know that the real value is 10-15% higher if there are few/no comps matching your expectations?

Nutmeg
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Nutmeg » Sun Jun 10, 2018 8:55 pm

I have used a buyer‘s agent for each of the houses I have purchased, and I believe that they added value. I particularly think it is important to use a buyer‘s agent when moving to a new area.

Buyers‘ agents have informed me about the new area, helped me assess the value of the house, referred me to inspectors with whom they had had good experience, helped me assess the inspection report, helped with negotiations, referred me to reliable lenders who could meet the closing timetable, and found reliable repairmen when the seller wanted to give me money instead of making repairs discovered by the inspection report. At one closing 30 years ago, the buyer‘s agent found a mistake on the closing documents and informed the seller‘s attorney of the mistake; the attorney agreed, pulled $75 out of his wallet and handed it to me.
Last edited by Nutmeg on Sun Jun 10, 2018 8:57 pm, edited 1 time in total.

Nutmeg
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Re: Found an FSBO home for sale. How to avoid Realtor?

Post by Nutmeg » Sun Jun 10, 2018 8:55 pm

deleted duplicate post

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