CleveBucks;896486; said:
I've been looking at houses, and one I came across is FSBO. I'm thinking I can knock the customary 3% buyer's agent commission off the top of the list price since the seller won't have to pay it, and negotiate the price down from there. I would have the contract reviewed by a real estate attorney, make it contingent on home inspection, etc. Anything else I should look out for? Anybody have any good or bad experiences going this route?
I know everything on the market in the neighborhoods I'm interested in, don't need someone to line up my financing, and don't really need an agent to give me negotiating tips. Is there any reason I should get an agent and effectively raise my price by 3%? That seems like a steep price to pay for someone to do the paperwork, especially when that person isn't a lwayer.
If you don't have a real estate attorney in mind I'd be happy to send you two of the best in the buisness.. with FSBOs, going without an agent isn't a bad thing at all, so long as you know what you're doing. One thing that others havn't mentioned, most people over-pay for there house, and remember it's an insane buyers market. As a buyers agent, my main job is to get people who know what they are doing around my client (wheter it be inspectors, vendors, loan officers), to get them the best possible buy, and to make sure everything is right and there back is being watched. I cant stress do not overpay enough. Is it worth 3%? Well keep in mind when everyone is done dipping there hands in it's 1-1.5% and that most people i deal with are listed with a sellers agent.. and the buyer dosen't pay me then. If the buyers were unrepresented, the listing agent then makes 6% instead of co-opping with me. So for FSBOs, since they dont have the 6% or 3% built in, theortically you should be able to get a better deal.
scooter1369;896548; said:
When you list your house with an agent, they have a form you have to fill out sign called a
Residential Property Disclosure Form.
This is used as a safety net for the buyer, showing that the seller has no previous knowledge of any of the issues listed on the form. If the new owner then has issues, and they can prove that the previous owner intentionally deceived them by selling the house without disclosing the problem, the contract can be voided and buyer returned all monies and could potentially sue for fraud.
Make sure you get one.
Since they weren't listed with an agent I'm not sure if they need to have one or not, they may.. I forgot the laws specifics. But I disagree with that being a saftey net.. first rule is they only have to disclose known defects, and I'll be the first to tell you they don't. What I tell buyers when we review that form is: hey, you hope they are honest but anything they are trying to hide we will find in the home inspection. I make sure I am there and my clients are there for the inspection, that way we can both be asking questions as they go.
You are correct in that if you can prove the last owner had actual knowledge of the problem, you can have your money returned.. but proving that may be a little tricky. The disclosure is a good idea, but the inspection is the saftey net, at least IMO.
AKAKBUCK;897481; said:
Anyway... the realtor I used was a Remax agent... so.. almost wonder if she did it sort of "under the table" since the never listed the property... but... my guess is that you'd almost be better off looking for someone for a small independent realtor... if not the owner of one. I'll confess the relationship/fee structure between agents and realty firms is one I don't know much about... so I'm just guessing.
Not to knock the competition but I cant say Im surprised. In terms of looking for a smaller independent realtor or even the broker of one of those.. ohh becareful. Now I'm a "REMAX" agent, but each office is independently owned and operated and ours would be one of the smaller offices around and is a family buisness. Grandpa does the phones, the old man does listings, uncle does listings and buyers, and i'm doing buyers. Dad and uncle are both in the top 1/2 of 1% of agents nationwide and as such, using one of us is much better because of the realtionships we have built, the experience we provide, and the expertise. As opposed to a small company.. they help keep me in line, but the point is just because we're REMAX we aren't a huge corporate office..
but most agents come off to me as shady.. again not knocking the competition and good number of my clients are people that had agents who didnt do their job.
