Buying a FSBO

[evcalyptos]

What is the name of your state? OREGON

There seems to be a lot of info around for Sellers in a For Sale By Owner (FSBO), but much less for Buyers, particularly those buying without an agent.

I'm posting for a girlfriend of mine. She has been working with a Realtor(tm) but on her own has found a FSBO that she would like to pursue. The Realtor(tm) did not find/bring/show this property to my friend. My friend asked me to find her a form for making a purchase offer. I did find a couple of generic forms, but see that there is no standardized national (or indeed State) form for this purpose.

My advise to her is to find a Real Estate attorney, or to cut some kind of deal w/her agent to shepherd her through the offer/purchase. I feel there is too much to learn in too short a time, tho I do see her point that this work may not be "worth" the +/- $5000 of a 'normal' commission.

My question to the forum is: do you agree with my advice to her or have anything else to add? And/Or, do you know of a website with info specific to buying a FSBO without an agent?

Thanks in advance!
ev

 

[Souix]

What is the name of your state? OREGON

There seems to be a lot of info around for Sellers in a For Sale By Owner (FSBO), but much less for Buyers, particularly those buying without an agent.

I'm posting for a girlfriend of mine. She has been working with a Realtor(tm) but on her own has found a FSBO that she would like to pursue. The Realtor(tm) did not find/bring/show this property to my friend. My friend asked me to find her a form for making a purchase offer. I did find a couple of generic forms, but see that there is no standardized national (or indeed State) form for this purpose.

My advise to her is to find a Real Estate attorney, or to cut some kind of deal w/her agent to shepherd her through the offer/purchase. I feel there is too much to learn in too short a time, tho I do see her point that this work may not be "worth" the +/- $5000 of a 'normal' commission.

My question to the forum is: do you agree with my advice to her or have anything else to add? And/Or, do you know of a website with info specific to buying a FSBO without an agent?

Thanks in advance!
ev

***If you do a search on this site, you will see all the nightmares that can happen with a real estate transaction gone bad, especially with no Realtor or Attorney. The chances of getting into some sort of dispute or lawsuit is very very great without some sort of representation. I somewhat agree with your advice. You can ask the GF's Realtor to step in and handle the transaction for her. We have one party documents that can be drawn up between the seller and a specific buyer that specifies who pays the brokerage fee. Sometime the seller refuses to pay though, and your GF might be asked to pay the fee based on what the Realtor's principal broker's rules are. The part I disagree with you is the $5,000 more or less fee.....its worth every cent of it....even though $5,000 is pretty low. Think of it as the money well spent to avoid thousands and thousands of potential problems in the future. Good Luck***

 

[JETX]

Simply, if the seller does NOT have a listing agent (as in FSBO), then the seller is not obligated to pay commissions to anyone..... including your friends agent. That is why agents don't like to show an FSBO property.... no money in it for them.

However, your friend should NOT go into this transaction without the benefit of a qualified real estate attorney. The cost for an attorney to review the documents should be a few hundred dollars..... and well worth it (and probably cheaper than an agent at buyers commission of 3 to 4% of the sales price).

BTW, there are sources for Oregon Real Estate forms:
http://www.uslegalforms.com/realestatecontracts/oregon-real-estate-contracts-forms.htm
http://www.ilrg.com/forms/realestate-purchase.html

 

[Souix]

Simply, if the seller does NOT have a listing agent (as in FSBO), then the seller is not obligated to pay commissions to anyone..... including your friends agent. That is why agents don't like to show an FSBO property.... no money in it for them.

However, your friend should NOT go into this transaction without the benefit of a qualified real estate attorney. The cost for an attorney to review the documents should be a few hundred dollars..... and well worth it (and probably cheaper than an agent at buyers commission of 3 to 4% of the sales price).

BTW, there are sources for Oregon Real Estate forms:
http://www.uslegalforms.com/realestatecontracts/oregon-real-estate-contracts-forms.htm
http://www.ilrg.com/forms/realestate-purchase.html

***Thank you JETX by posting those links you have just shown how involved a real estate transaction can be. OP, don't forget to have the seller complete and sign a full disclosure, make sure your GF undertands it and have a full house inspection. I have yet to hear of a real estate attorney in Oregon that charges just a few hundred dollars, but I have no need to shop around. ***

 

[JETX]

I agree..... and never suggested that the writer go forward without the benefit of counsel. And to add or clarify my previous statements:
1) Before you start looking at FSBO sales (actually, before you start looking at ANY home purchase, agent or not), call a few attorneys and get prices for them to review a residential purchase agreement 'package' that you will bring them. It should be a few hundred dollars as the attorney is only going to read the already existing contracts and give you advice.
2) As an FSBO sale, ask the seller to produce the contract form. Go ahead and fill in all the blanks. Do NOT sign it.... in fact, don't sign ANYTHING.
3) Take the completed 'contract package' to your attorney. Sign ONLY after he/she has reviewed and approved the contents.
4) If the seller has ANY adjustments to the contract before he/she/they sign it, call your attorney first and discuss them.

Again, the total bill for these relatively simple legal services should be less than $500. Which will be far less than a 'buyers agent' commission fee.

 

[evcalyptos]

Thank you both for your prompt comments!
As she's been looking for a long time, I hope this transaction works out to the mutual benefit of all involved, with appropriate professional guidance.

Thank you again!
ev

 

[HomeGuru]

Good thread.