First Time Homebuyer buying a FSBO home, help!

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rbhgncmp
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First Time Homebuyer buying a FSBO home, help!

Post by rbhgncmp » Sun Apr 15, 2018 5:46 pm

I'm 25 and about to purchase my first home. I am an attorney so I know somewhat about the process, but should I pay for a realtor? I've found the home I wanted and we have come to an agreement on the price. I talked with a local realtor who said he would be my agent for $850. What would you all do? What would the agent do beyond draw up the purchase K?

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Pajamas
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Re: First Time Homebuyer buying a FSBO home, help!

Post by Pajamas » Sun Apr 15, 2018 5:48 pm

How do real estate closings take place in your state? What would a real estate agent do for the $850? That's something you should ask the agent!

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Mlm
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Re: First Time Homebuyer buying a FSBO home, help!

Post by Mlm » Sun Apr 15, 2018 5:57 pm

I purchased a FSBO. The seller had a standard purchase offer that I had my attorney review. The attorney also gave me a disclosure form to have the seller fill out. In hired an inspector and my attorney handled the title insurance and the closing with the sellers attorney.
I never even considered hiring a RE Agent. Why would you need one?
Reality has a way of catching up with you

retiredjg
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Re: First Time Homebuyer buying a FSBO home, help!

Post by retiredjg » Sun Apr 15, 2018 6:05 pm

I'm all for doing it yourself. I've done it using forms downloaded from the internet specific to my state and it worked fine. It was my 4th home sale (not purchase).

I'm not sure that a first time homeowner will know all there is to do - disclosure forms, appraisal, inspection, maybe a survey, what needs to be filed by when....this and that. It is possible that paying $850 to someone with experience, especially local experience since there is much variability with location, is one heck of a bargain. For a first timer, I'd lean toward using the agent. $850 is a drop in the bucket if you overlook something that could have protected you in some way.

pshonore
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Re: First Time Homebuyer buying a FSBO home, help!

Post by pshonore » Mon Apr 16, 2018 8:24 am

If attorneys handle all the details of a closing (like they do in CT) and you're familiar with those details, then you probably don't need an agent. Otherwise its not a lot of money for someone who knows all those details and local customs and can lead you down the right path.

escape goat
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Re: First Time Homebuyer buying a FSBO home, help!

Post by escape goat » Mon Apr 16, 2018 8:35 am

I’m an attorney too (though my practice is totally unrelated to residential real estate), and I’ve never hired a real estate agent or felt like I needed to. The value that an agent says they provide to justify their normal large cut is all unnecessary in the transaction you describe, obviously, which is why they’re offering to help you for $850. IMO, $850 is high but not unreasonable for the value an agent would provide in this case (but maybe not unreasonable if you pester them with questions all the time, etc.). However, as an attorney, with just a little bit of self-study, you should be able to look out for your own interests in a transaction like this at least as well as a real estate agent. Real estate agents wear many hats, but come contract time, they’re little more than non-lawyers playing lawyer, IMO.

Long story short, in your shoes, I’d trust myself more than a real estate agent. It’s not rocket science. But on the other hand, $850 isn’t that much money (depending on how big this transaction is, I suppose) if you want somebody who knows local customs, etc., to help you out.

brandy
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Re: First Time Homebuyer buying a FSBO home, help!

Post by brandy » Tue Apr 17, 2018 7:28 pm

I am a seller of two houses--FSBO. I never even sold Girl Scout Cookies before!
My title insurance company sent me the paperwork to use. As SELLER, I had a home inspection done and did some of the needed work beforehand. The inspection report was left on the kitchen counter so interested parties could check it out, and of course were able to get an inspection of their own done. The first buyer did not use an agent, the buyer for the second house had one before they found me.
Interestingly, they DID get their own home inspection, (by the same company). I was told there was a problem. I asked for a copy of their report, the agent refused. She said "They paid for it, it's theirs, you don't get a copy." I said, "I do, and I want one." She said, "NO! I read the contract, you don't get it."
I said, "I read it too, and I do. Have your broker send me a copy."
She called and I met her at the house the following day and she gave me a copy, and told me what the problem was. I had fixed it after I had my inspection done, a few months prior. They did buy the house...
You're an attorney, do your due diligence, maybe get a copy of the paperwork that will be used, and be above-board with the sellers. This may be their first time, too! :happy

Good Listener
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Re: First Time Homebuyer buying a FSBO home, help!

Post by Good Listener » Tue Apr 17, 2018 7:46 pm

I would never buy from a FSBO. By definition, they are trying to save on every possible fee. They will nickel and dime you. IF you still want to proceed beware.

retiredjg
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Re: First Time Homebuyer buying a FSBO home, help!

Post by retiredjg » Tue Apr 17, 2018 8:00 pm

Good Listener wrote:
Tue Apr 17, 2018 7:46 pm
I would never buy from a FSBO. By definition, they are trying to save on every possible fee. They will nickel and dime you. IF you still want to proceed beware.
This seems like an unfair and broad generalization. I did a FSBO (as a seller) and your description is nothing like my experience. In fact, the buyers said they got a screaming good deal. I did as well. It was mutually beneficial.

It may be true the seller is trying to save money, but remember this can also mean the buyer gets to buy the house at a lower cost.

I have no doubt that what you are saying is true about some sellers somewhere, but I don't feel it is a fair statement about FSBO in general.

Jags4186
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Re: First Time Homebuyer buying a FSBO home, help!

Post by Jags4186 » Tue Apr 17, 2018 8:05 pm

retiredjg wrote:
Tue Apr 17, 2018 8:00 pm
Good Listener wrote:
Tue Apr 17, 2018 7:46 pm
I would never buy from a FSBO. By definition, they are trying to save on every possible fee. They will nickel and dime you. IF you still want to proceed beware.
This seems like an unfair and broad generalization. I did a FSBO (as a seller) and your description is nothing like my experience. In fact, the buyers said they got a screaming good deal. I did as well. It was mutually beneficial.

It may be true the seller is trying to save money, but remember this can also mean the buyer gets to buy the house at a lower cost.

I have no doubt that what you are saying is true about some sellers somewhere, but I don't feel it is a fair statement about FSBO in general.
Agreed. It’s one thing for a seller to skimp on a $300 something or other, it’s another thing to try to save, say, $30k in commission on a $500k home...

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Mlm
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Re: First Time Homebuyer buying a FSBO home, help!

Post by Mlm » Tue Apr 17, 2018 8:13 pm

Good Listener wrote:
Tue Apr 17, 2018 7:46 pm
I would never buy from a FSBO. By definition, they are trying to save on every possible fee. They will nickel and dime you. IF you still want to proceed beware.
I can only speak for myself but I got a nice deal and was not nickel and dimed at all. I knew the market well and was working with a Realtor at the time I found the FSBO. I and had no commitment to the Realtor and negotiated a cash deal on my own with the executor of the estate. It was honestly the easiest home purchase I ever made. The only thing you really have to know is the market you are in.
Reality has a way of catching up with you

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Pajamas
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Re: First Time Homebuyer buying a FSBO home, help!

Post by Pajamas » Tue Apr 17, 2018 8:16 pm

Good Listener wrote:
Tue Apr 17, 2018 7:46 pm
I would never buy from a FSBO. By definition, they are trying to save on every possible fee. They will nickel and dime you. IF you still want to proceed beware.
I bought a FSBO. There were four lawyers and a couple of bank reps at the closing, no need for real estate agents. They did not nickel and dime me or cause any problems at all.

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