FSBO Home Selling

[Clock4869]

Okay---has anyone sold their house FSBO (for sale by owner)? If so did you get any help at all? Here's my situation I know someone that wants to buy my house. So i can sell it on my own and he will work with me on selling. I'd like to hire someone to help me sell it (like a flat fee type so not a commissioned realtor---maybe an closing attorney or a realtor that will only do the paperwork). Do you have any recommendations or advice on what to do to make sure that I as the seller do everything I'm legally required to do/etc?

Thanks!

[BBatesokc]

I just sold a condo FSBO. It was a cash deal, but that just made it a bit easier.

I just called Stewart Abstract Title and told them I wanted to sell a condo and had a buyer. They had me download a contract for myself and the buyer to fill out. They did the title search while the buyer had the condo inspected. We all simply met, signed some papers and it was a done deal and saved a ton of cash over using a realtor or getting a real-estate lawyer involved. They will break down for you what expenses the buyer pays and what expenses the seller pays.

Very painless.

[boscorama]

Ten years ago I found my current house and agreed to a price with the seller, who had not yet put the property on the market. Seller brought in a realtor to oversee the formalities. Realtor got some fee for services rendered.

Certainly, someone who knows about such things will reply soon.

[Teo9969]

It's really not that difficult if you can find the buyer. You draft up a contract with your buyer, then go to your title company and make it happen. Contact your title company for a blank contract template. Follow through with that contract and then you and the buyer can do all the peripheral processes you want: Earnest money, Termite Inspection, Flood Certificate, Appraisal, Home Inspection.

The Title company will be able to tell you what the fees are for closing (I think they end up being around $1700) and there are traditional obligations to the seller or buyer, though I can't remember who pays what.

Great way to save money if you can find a buyer and do it yourself.

[ljbab728]

I'll think I'll try to save some money the next time I need a filling in a tooth. It's sounds fairly easy so I should be able to handle it.

[Teo9969]

I'll think I'll try to save some money the next time I need a filling in a tooth. It's sounds fairly easy so I should be able to handle it.

That's not an equitable comparison...

[kevinpate]

I'll think I'll try to save some money the next time I need a filling in a tooth. It's sounds fairly easy so I should be able to handle it.

a lil' superglue, a lil' epoxy, some fine grit sandpaper, two fifths of rum, and a baseball bat to whack your toe with to take your mind off the tooth pain. easy peasy.

but not as easy as FSBO

[ljbab728]

That's not an equitable comparison...

I didn't say it was but you get the idea anyway.

[Questor]

This is an interesting discussion. Other than marketing your house and hopefully finding you a buyer, what does the realtor do that you could not simply call up an abstract company and have them do for you? What legal risks might one be assuming if they decide to forgo a realtor and do this?

[ljbab728]

I'm not a realtor and it would be interesting to get input from one. But I think that having potentially years of experience would give one insight that a novice wouldn't have in dealing with what can be somewhat complex matters. It's not unusual in my business to have someone who tried to do something for themselves call me for advice after encountering problems.

[BBatesokc]

I'm not a realtor and it would be interesting to get input from one. But I think that having potentially years of experience would give one insight that a novice wouldn't have in dealing with what can be somewhat complex matters. It's not unusual in my business to have someone who tried to do something for themselves call me for advice after encountering problems.

I guess you missed the part (or as usual chose to ignore it) where myself and others said you need to get a title company involved. The realtor and real estate lawyer count on people with your mindset - to scared to do for themselves.

Do you ever change your own oil or brake pads, fix your own plumbing or AC or install your own gutters? Professionals get paid a lot of money to do those things, but doesn't mean you can't learn to do them yourself. There are lots of things people can do on their own when they grow a pair.

I'm not guessing on how to do it - I've done it - 3 times now. Its not a big deal. Two of my FSBO were cash deals and went very quickly (the only delay was the title search). The other had a bank involved. Still not a big deal, but took longer and had more paperwork (for the buyer mostly).

Depending on the property however, a realtor is a good (though more expensive) option when you don't have a buyer. I've known several people who did FSBO only to sit on a property forever making payments and upkeep. When they broke down and got a realtor, more often then not, they sold the property much quicker. But, if you've got a place in a desirable location, then sell it yourself.

We've been looking in Heritage Hills and Mesta Park and several of the homes we've looked at were FSBO because they know they can move them very quickly if the price is decent.

Just an FYI, when I do FSBO I require a letter from a potential buyer's bank prior to showing a property so you don't waste your time with 'lookers.'

[ljbab728]

I guess you missed the part (or as usual chose to ignore it) where myself and others said you need to get a title company involved. The realtor and real estate lawyer count on people with your mindset - to scared to do for themselves.

Do you ever change your own oil or brake pads, fix your own plumbing or AC or install your own gutters? Professionals get paid a lot of money to do those things, but doesn't mean you can't learn to do them yourself. There are lots of things people can do on their own when they grow a pair.

I'm not guessing on how to do it - I've done it - 3 times now. Its not a big deal. Two of my FSBO were cash deals and went very quickly (the only delay was the title search). The other had a bank involved. Still not a big deal, but took longer and had more paperwork (for the buyer mostly).

Depending on the property however, a realtor is a good (though more expensive) option when you don't have a buyer. I've known several people who did FSBO only to sit on a property forever making payments and upkeep. When they broke down and got a realtor, more often then not, they sold the property much quicker. But, if you've got a place in a desirable location, then sell it yourself.

We've been looking in Heritage Hills and Mesta Park and several of the homes we've looked at were FSBO because they know they can move them very quickly if the price is decent.

Just an FYI, when I do FSBO I require a letter from a potential buyer's bank prior to showing a property so you don't waste your time with 'lookers.'

I didn't miss or ignore anything. You're certainly free to "do it yourself" all you want to, as is anyone. That doesn't change my point in the least. The odds of having problems when you're doing something that you're not a professional at certainly go up even if you "think" you've learned how. Of course the realtors and real estate lawyers probably like for novices to try it themselves so they can get paid to pull their cookies out of the fire later.

Maybe you need to quit eating so many meals out and learn to fix all of those dishes you like at home instead. There's absolutely no need for paying all of those professionals to do something you can do for yourself.

[blangtang]

Okay---has anyone sold their house FSBO (for sale by owner)? If so did you get any help at all? Here's my situation I know someone that wants to buy my house. So i can sell it on my own and he will work with me on selling. I'd like to hire someone to help me sell it (like a flat fee type so not a commissioned realtor---maybe an closing attorney or a realtor that will only do the paperwork). Do you have any recommendations or advice on what to do to make sure that I as the seller do everything I'm legally required to do/etc?

Thanks!

Is the buyer paying cash or getting a bank involved with the financing? Cash is easier of course.

You've done the hard work of finding a buyer!

My experience is when there is buyer with no real estate agent and a seller with no real estate agent. In that case, get a simple contract to purchase real estate from any office supply store, or a template online, have both parties fill out the purchase price, etc. Then get ahold of a title/abstract company, let them know you have a transaction ready to go, and they will schedule a date for the closing. The title/abstract company will make sure there are no liens outstanding, will set up any paperwork, bank wire info, etc. Your closing date might change if anything comes up.

The basic contract will likely give the buyer a window of like 10 to 30 days to perform any and all inspections, surveys, etc that are in their interest. With a bank involved with financing, they may require a more intense (and costly to the buyer) investigation. A renegotiation of the standing contract may ensue should the inspections/engineer reports/termite inspections,etc show up anything out of the ordinary.

I know there are real estate agents who will guide you though the process for a flat fee, once you have a buyer and a seller, but they might just give you a standard real estate contract and take it down to the title company and charge you 1500 or so. thats what i remember.

I don't know why people are fighting about travel agents and realtors becoming outmoded by the internet, that has no place in this thread

------
(edit:save yourself a trip to the office supply store)

here's the paperwork link:

http://www.ok.gov/OREC/Publications/...d_Addenda.html

you need 2 to print off 2 things:

the 'Residential Sales' contract, thats what you take to any abstract/title co. once signed by both parties.

you also want to include the 'disclosure' form at the bottom of that page to protect you in the future.
-----

Someone else may chime in and tell some other tales, I'm sure there are nuances involved in every situation.

[ljbab728]

I don't remember anything being said about anything being outmoded by the internet anywhere in this thread. We're just talking about people trying to do things for themselves instead of using professionals who do things every day that know what they're doing. I'm not saying it can't work on individual circumstances. The odds are that many people will run into problems, however.

[blangtang]

I don't remember anything being said about anything being outmoded by the internet anywhere in this thread. We're just talking about people trying to do things for themselves instead of using professionals who do things every day that know what they're doing. I'm not saying it can't work on individual circumstances. The odds are that many people will run into problems, however.

true that, i guess you hold travel agents and relitters in higher regard that I, but you all were resorting to personal attacks, imho. But whatevs, we're trying to help the OP.

[ljbab728]

true that, i guess you hold travel agents and relitters in higher regard that I, but you all were resorting to personal attacks, imho. But whatevs, we're trying to help the OP.

I guess you and I have a radically different idea about what a personal attack is. My advice was also trying to help the OP by pointing out that DIY isn't always the best route.

[Clock4869]

great info---especially blangtang---thanks a bunch! I was wondering if a realtor willing to do flat fee would comment or send me a PM letting me know their fees---hmm no luck there!

[OKCTalker]

Clock - Be very careful with this. I've worked a variety of roles in both residential and commercial real estate my entire career, and you're taking a lot of risk for saving not much money. Beginning with this - "I'd like to hire someone to help me sell it" - you need to be very clear what you're asking someone to do. Briefly, here are a half-dozen things you've got going against you:

1) You've never done this before so you don't know what you don't know. Lacking qualifications or experience, no-one else would hire you to do this for them, so why should YOU hire YOU to do this for yourself?
2) Time. What is yours worth? This will take far more time than you think, and in the end you'll likely realize that it wasn't worth it. You - not a realtor - will be meeting the buyer, his inspector, appraiser, and anyone else who needs to get into the house before closing.
3) Comps. It sounds like you've already got a buyer lined up, but if not - or if they fall through - what do you know about comparable properties if talking to prospective buyers? You're not working in the industry, you're not watching other transactions, you're not seeing houses come and go, or deals fall apart or close. Every house is unique, and that translates to monetary value - how much does your new roof add to the value, or your dated kitchen take away? If somebody disagrees with you on price, how do you convince them that you know what you're talking about? When the inspector comes back and knocks the value of something due to age or condition, how will you argue that?
4) Marketing. If your buyer falls out, how will you market your house? You don't put a sign in the yard and wait for the phone to ring. In addition to Web sites, how about newspaper, flyers, open houses, broker's opens? How will you get it in the MLS so other brokers find it (most buyers are using realtors to broaden their search, not doing it themselves).
5) Legal. If you make one mistake - even with an estimate of the square footage - you've left yourself open to a lawsuit. Mess up on a form or verbally mis-state a fact ("this furnace was installed in 19__") and you've exposed yourself legally and financially. You have E&O coverage, right? Wrong. Do you even know what that is? Lawsuits happen all of the time, most without merit. In your case, you're being sued personally.
6) Working with realtors. If you get this closed with the buyer you know, that's great, but if not then no realtor wants to work with you. They'll make half the commission, they'll do all of the work, they know you won't be able to answer many of their buyer's questions, they fear you'll be asking THEM a bunch of questions, and they don't even represent you. In many cases, they can't help you because of a contractual conflict of interest.

If you end up selling to a buyer represented by a realtor, then you've still paid half the commission - is it worth all of this simply to save a little bit of money?

I know what I'm doing and I've bought & sold a bunch of personal residences, but I've never done it without an agent, and won't.

[BBatesokc]

Don't let all this "the sky is falling, the sky is falling" dribble scare you. The biggest advantage to hiring a realtor for a residential sell is if you don't have a buyer already or you don't live in a neighborhood highly sought after. When I go to sell my house next year I'll use a realtor, not because I fear FSBO, but simply because I don't live in a sought after neighborhood, my asking price will be relatively low (meaning more of my time to deal with deadbeats) and I want it to sell quickly as the house is already worth twice what we paid for it, so any selling price will be a profit.

If I can find my own buyer (neighbor referral most likely) then I will absolutely sell it myself and not only save the commission, but the latest study I read shows FSBO homes get closer to their asking price than non-FSBO (but, they also take longer to sell and most FSBO sellers give up and hire a realtor because they cannot find a buyer on their own or get tired of dealing with people who either are not serious or have no $$$$).

Remove the 'find a buyer' part of the equation and there is no big scary monster in selling FSBO (unless you're not an honest seller). Like I said, I completed my 3rd FSBO about a month ago and it was a condo (making it a bit more technical) and it went smooth like all the others. Stewart Abstract dealt directly with the buyer and seller (me) and a lawyer with them looked over everything. I'm guessing it cost me $800 to sell it. Every realtor or atty. I've called would have charged me that (plus a percentage) and a fee of $1,000-$2,500+. And that's with me providing the buyer! With a realtor representing the entire process I would have been out their commission..... $12,000!!!!!!

Is FSBO for everyone?00 Nope. Should it be a consideration? Yes.

If you have a buyer already - highly consider FSBO.

However, if you want 'piece of mind' (even if its not necessary) you're only out another $2,000 or so in most cases if you use a 'professional.'

The biggest savings in FSBO is finding a buyer on your own and saving the commission - which is often not easy and will usually take a lot longer.

[OKCTalker]

Don't let all this "the sky is falling, the sky is falling" dribble scare you.

C'mon Brian. Dribble?

[Questor]

You have some good points OKCTalker, but I think you and others are dismissing Brian's post too easily. I have to admit when you said, "is it worth all of this simply to save a little bit of money?" I literally laughed out loud. Mostly because I can't think of a real transaction I've done or one of my friends/family has done that hasn't cost them at least $10k. I'd say that is considerable. Now realtors may be worth it, all I am saying is that there is a significant cost/benefit to consider there. For example sure you might get sued if you screw something up. But if that happens it's almost surely going to be for straight damages. Well, to use your example what's a new furnace cost? What would the legal bills be for buying the other guy a new furnace and settling out of court? Probably the same or less than the $12k that Brian just mentioned. And more often than not that would never happen, or would only occur in small claims and the costs wouldn't be that great. So might it be worth it? Yeah, maybe.

I'm not knocking realtors or real estate transactions, I think most do a fine job, I'm just saying I don't see why everything always has to be a yes/no answer. Don't use a realtor? Sure, maybe sometimes. The more I think about Brian's post, the more I realize I could easily spend very little cash to get comps, an MLS listing, a lawyer, and an abstract company involved. That seems fairly low-risk to me. So maybe it is worth forgoing the realtor if his property is in a prime location and he's a decent negotiator.

[Stew]

Excellent points OKCTAlker.

In June I agreed to buy a FSBO and the owner was absolutely clueless. I hooked her up with a realtor friend who handled the deal for a flat fee of $960. I'd wager in the end the seller thought it was money well spent.

[stick47]

We did FSBO on our previous home. Arranged w/a title company to handle the paperwork and everything went as smooth as any previous sale I'd done with a real estate company. You really don't need a lot of knowledge to do a FSBO.
Also, where in the past you could buy a home and flip it 3 years later for a profit, these days you'll need to keep it 10+ years just to to break even. For that reason I think the 1 in 5 homes sold FSBO today will be double that before long.

[RealEstateCop1]

Good Luck!

[JayhawkTransplant]

I will be selling my house without a realtor next spring (similar situation--an attorney wants to buy it), so please come back here and tell us how it went!