Buying a FSBO house. How to proceed?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
rgs92
Posts: 2805
Joined: Mon Mar 02, 2009 8:00 pm

Buying a FSBO house. How to proceed?

Post by rgs92 »

We are looking at a FSBO house and are curious how to proceed if we decide to buy.
How should we proceed if we come to a price agreement with the seller informally?
So far it's just us and the seller. As soon as we retain a lawyer and get an inspector, does our lawyer generate the contract?

(Is there such a thing as a realtor who will just handle the transaction for a flat fee that we pay, not the usual commission? Do I need anything like this if I just use my own lawyer and inspector?)

I did a search on FSBO here on Bogleheads, but I did not find any threads with a plain how-to-proceed list. Thanks for any info.
z91
Posts: 522
Joined: Fri Mar 07, 2014 1:19 pm

Re: Buying a FSBO house. How to proceed?

Post by z91 »

Assuming you have agreed on a price, get a lawyer. Ideally one that works in real estate. They should be able to handle the rest of it for a flat fee.
Topic Author
rgs92
Posts: 2805
Joined: Mon Mar 02, 2009 8:00 pm

Re: Buying a FSBO house. How to proceed?

Post by rgs92 »

Thanks z91. Yep, when I sold my house, the buyers' realtor seemed completely out of the picture and all issues were handled by the 2 lawyers negotiating with each other.
cowbman
Posts: 228
Joined: Sat Jan 14, 2017 2:10 pm

Re: Buying a FSBO house. How to proceed?

Post by cowbman »

I've been wondering about this. Real Estate Agents frequently take 2-3% on each side. Wouldn't it be cheaper for both sides to list on a FSBO/MLS aggregation site and just use attorneys? It obviously depends on the property price, but in VHCOL markets, it seems it'd be cheaper to pay an attorney rather than $20k+ to the agent.
User avatar
Mlm
Posts: 496
Joined: Sat Apr 09, 2016 6:00 pm

Re: Buying a FSBO house. How to proceed?

Post by Mlm »

I purchased from FSBO about 20 years ago. Once we verbally agreed upon price I went to a to a Real Estate Lawyer and he handled everything from there. I arranged for the inspection and the Lawyers handled the closing. There was no mortgage involved so it was very fast and cheap to close.
retiredjg
Posts: 42214
Joined: Thu Jan 10, 2008 12:56 pm

Re: Buying a FSBO house. How to proceed?

Post by retiredjg »

Real estate is very state specific. In many states, a lawyer is not required at all. There should be a lot of information available to you on the internet about the requirements of your state.

When I did this, we simply downloaded a contract that was approved by the state and filled it out. Buyer hired an inspector, we found a title insurance company and I think it was the title coompany did the closing (not sure).

The Dummies guide was helpful, but mostly I just did a lot of internet research and called different services and picked what looked best.

It went very smoothly.
Finnegan
Posts: 7
Joined: Sun May 10, 2020 2:10 pm

Re: Buying a FSBO house. How to proceed?

Post by Finnegan »

I just bought and sold FSBO. Plagiarized state approved contract, and used a title company. No lawyer needed. Don't forget to get the EPA lead paint disclosure form fro the seller if you are financing.
Post Reply