Buying a house FSBO? Pros and Cons? Advice Needed

[mickeysgal]

We are seriously considering a for sale by owner house. We've either always bought directly from a builder or through a RE agent. Can anyone provide guidance for how we should proceed? Of course we need a good RE lawyer, but what else should we be doing?

 

[pearlieq]

Check the price carefully against other comparable houses. I know this isn't true in all cases, but the majority of FSBO homes I've seen have been overpriced.

Otherwise, I don't see much of a difference. Your lawyer will negotiate the sales contract, and can guide you through the rest of the process.

 

[FlyingBelle]

We've got our home up FSBO, interested in something in Chicago? JK

The attorney is a must - make sure they're good.

The approach we're taking is that if someone is coming in with an offer and no agent (thus, no commissions) we're willing to be more flexible in our price.

Make sure they know you're not represented by anyone with interest in commissions. Have your attorney draft your offer contract - and make sure they review it once accepted. You still have all the rights (provided it's allowed in your contract) to have an inspection, etc.

I hear it's a buyer's market right now... good luck!

 

[Aidensmom]

I've sold FSBO before. I was obligated to follow all the same laws as someone represented by an agent, I just didn't have to pay the commission. I am not sure what the big difference is, and what you are questioning? While there are some people that may be inflexible in their asking price, there are just as many people that aren't, the same as if they have an agent.

 

[mickeysgal]

Check the price carefully against other comparable houses. I know this isn't true in all cases, but the majority of FSBO homes I've seen have been overpriced.

Otherwise, I don't see much of a difference. Your lawyer will negotiate the sales contract, and can guide you through the rest of the process.

We absolutely know the comps for this particular subdivision, and the town. We know that the price is being asked is not overpriced, but actually very fair. We've already seen the inside of the house and will be returning this weekend for another look. The owner says he's committed to selling, (he wants to downsize - house is too big for him) so I can't see how this situation is different than if he signed with an agency.

 

[ashjohnson80]

make sure you get a home inspection.

 

[mickeysgal]

make sure you get a home inspection.

Absolutely! A home inspection and a termite inspection is a MUST. Now radon, I'm not sure about since the area/region is new to us. Its in the Atlanta region...anyone know about whether a radon inspection is needed? I'm sure a local lawyer would know this.

 

[pearlieq]

We absolutely know the comps for this particular subdivision, and the town. We know that the price is being asked is not overpriced, but actually very fair. We've already seen the inside of the house and will be returning this weekend for another look. The owner says he's committed to selling, (he wants to downsize - house is too big for him) so I can't see how this situation is different than if he signed with an agency.

Neither can I. I was just suggesting you check...

It sounds like you've done your homework, so best of luck with the rest of the transaction.

 

[Southern4sure]

We sold our house as FSBO. We didnt have to do anything. The buyer was already approved and his bank took care of everything from the appraisal to closing.

We agreed on a price and sat back until it was time to sign the papers.

 

[FlyingBelle]

Now radon, I'm not sure about since the area/region is new to us. Its in the Atlanta region...anyone know about whether a radon inspection is needed?

IMO, radon is one of those iffy tests. When I sold my condo a couple years ago, the buyer wanted a radon test. I was away on my honeymoon when my agent agreed to it. Being that the condo was closed up for a couple of weeks, it came back positive. Lost the sale.

Brought in an expensive radon abatement specialist, who suggested, since I didn't have a basement, to seal around the vents, windows, etc and air the place out for a while. Had another test done - no traces whatsoever.

I'm sure many will disagree with me. Basically, it should be in the standard real estate contract whether or not you can do it. Just be prepared for the outcome. It can be very costly to have it taken care of... or it can be a simple fix. Also, we were told that since it's a naturally-occurring gas, levels of it can vary greatly from one neighbor to another.