buying home w/o real estate agents questions?

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matthewmon
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Joined: Mon Nov 07, 2016 10:38 pm

buying home w/o real estate agents questions?

Post by matthewmon » Mon Sep 11, 2017 1:41 pm

I know of a house that is 3 houses down from my mother's house that is going to be put on the market fsbo in a few months. My my mom has contacted the owner twice asking to let my wife and I see the home ASAP because I am interested...but he never offers to show it. I am very interested in the home because it is our ideal location and one of the smallest/cheapest in the neighborhood which is EXACTLY what we want. I have already viewed old pics of the house online and I know it would work for us. The market has heated up a lot in the last year and houses are going for more money and don't last on the market long at all. If the seller would take a reasonable/fair offer I would be willing to pay to get it (it's an advantage to already have his home sold, wouldn't even need to clean it up and get it in tip top shape, and wouldn't have to pay any agent commissions whatsoever because I wouldn't have an agent...I know if I was the seller I would be more than happy to take this deal). My buyer agent agreement expires Sept. 31 so my thought is if I could view the house soon and we could agree to a price we could get the paperwork together but not sign it until October 1st w/ closing the last day of October and I could rent the home back to the owner for $750 per month (the owner is building his new home which should be move in ready by around January) until the owner moves out. The owner probably hasn't thought of this possibility and my mom didn't mention it yet.
Of course I have never mentioned this home to my current realtor (and I wouldn't feel bad about her not getting any commission because she already got a nice one selling my house when I contacted her out of the blue and my home practically sold itself). My thought is I would like to buy the home before it hits the market to assure I get it plus the interest rates are low now and I don't want them to go up higher by the time we might would get it in the normal process in early next year. Any advice or tips would be GREATLY appreciated, thanks!

vaught
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Re: buying home w/o real estate agents questions?

Post by vaught » Mon Sep 11, 2017 2:48 pm

Good luck with the purchase.

Only potential flaw I saw in your plan would be if you are getting a mortgage on the home. You mentioned renting the property back to the owner until his home was finished. Most lenders require you to move in within a reasonable time (60 days at most that I've seen) if you are getting a residential mortgage and indicating it will be your primary residence.

pshonore
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Re: buying home w/o real estate agents questions?

Post by pshonore » Mon Sep 11, 2017 3:46 pm

matthewmon wrote:
Mon Sep 11, 2017 1:41 pm

Of course I have never mentioned this home to my current realtor (and I wouldn't feel bad about her not getting any commission because she already got a nice one selling my house when I contacted her out of the blue and my home practically sold itself). My thought is I would like to buy the home before it hits the market to assure I get it plus the interest rates are low now and I don't want them to go up higher by the time we might would get it in the normal process in early next year. Any advice or tips would be GREATLY appreciated, thanks!
Is there any language in your "buyers agent agreement" (assume you have one) about what happens if you become "aware" of a house during the period of the agreement?. Is she supposed to represent you in all transactions? Is she due a fee?

matthewmon
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Re: buying home w/o real estate agents questions?

Post by matthewmon » Tue Sep 12, 2017 9:36 am

ok i just reviewed the buyer agent agreement... it expires on midnight September 30th.

it says ------- The compensation shall be deemed earned if, within 120 days after expiration of this agreement, buyer enters into a contract to acquire property introduced to buyer during the terms of this agreement by Firm or any third party, unless buyer has entered into a valid buyer agency agreement with another real estate firm.


So I am thinking I will wait to contact the seller to view the home until October 1st to be safe. This home is not listed yet and will not be until after that time. I only heard about it through word of mouth and have not viewed it in person inside or talked to the owner directly. We have never mentioned this home to our realtor.

thoughts?
Last edited by matthewmon on Tue Sep 12, 2017 11:15 am, edited 1 time in total.

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lthenderson
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Re: buying home w/o real estate agents questions?

Post by lthenderson » Tue Sep 12, 2017 10:54 am

Having sold a lot of things privately, including unsuccessfully a house, I can say that quite often I hear third hand that somebody is interested in what I have and rarely do they actually buy it. Because of this I usually don't go out of my way to make contact with third party people. If they are interested, they can contact me directly. So my advice to you would be to make direct contact personally with the owner. This allows you to discuss what you wrote about renting it back (if possible for loan guidelines) or perhaps negotiate a date that works best for both of you to transfer title of the house. There may be other reasons why the current owner is not ready to sell it just yet.

fishmonger
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Re: buying home w/o real estate agents questions?

Post by fishmonger » Tue Sep 12, 2017 10:55 am

The seller would pay your agent's commission (unless the owner specifically stated it will not pay co-broker fees). What am I missing?

pshonore
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Re: buying home w/o real estate agents questions?

Post by pshonore » Tue Sep 12, 2017 11:09 am

He's hoping the seller does not use an agent and he can buy the house cheaper (perhaps they'll split the difference)

matthewmon
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Re: buying home w/o real estate agents questions?

Post by matthewmon » Tue Sep 12, 2017 11:13 am

he is going to sell FSBO so no commissions for seller agent and I won't have a realtor so there will be no 3% going to a buyer's agent. $100 per square foot is a good and fair price for properties in the neighborhood to sell for recently so hopefully he would take that with no realtor's involved. One thing that concerns me is the HVAC unit is original from 2005. My mom lives in same neighborhood and her house was built in 2007 and she had to replace her HVAC a couple years ago. I had to replace our HVAC less than a year before we sold our house. It is going to suck to probably have to buy a new HVAC again not long after moving into the house! But the housing market is hot right now with low supply and a lot of demand so people are having to pay a premium.

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CAsage
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Re: buying home w/o real estate agents questions?

Post by CAsage » Tue Sep 12, 2017 8:26 pm

Fair prices are so relative. That seller firmly intends to sell, apparently without a broker, to the highest bidder he can find. He may look favorably on you if you save him trouble listing/cleaning/waiting, or he may have high hopes to snare some of that recent local appreciation. You should contact him directly. If you make an offer, he may very well hold onto it until he gets someone else, and tries to start a bidding war. There is no way to tell.... You have the same chance anyone else does, that he markets to. Good luck!
Minor note - 12 years doesn't seem old for a HVAC system, I would think the planned lifespan is more. Minor issue.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.

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