Does this sound right?

louislinusMarch 14, 2014

We want to make an offer on a house but it has to be contingent on us selling our house. We have to sell our house FSBO or we won't have enough equity for the down payment on the new house. My realtor said that her firm doesn't allow them to submit offers with contingencies if the house is FSBO. They require the house be listed with a realtor. What say ye?

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jewelisfabulous

I say your realtor has a fiduciary obligation to present ALL offers to the seller. If she says she won't, find a new realtor that will.

Here's a slightly different take (see link). The difference with your situation, though, is that the seller hasn't set the perimeters not to receive FSBO contingent offers. Rather, the realtor is saying her firm has made that decision.

http://www.realtor.com/advice/what-can-we-do-if-our-offer-was-not-presented-to-the-seller/

    Bookmark   March 14, 2014 at 10:36PM
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redcurls

You never asked THIS question, but I don't think you're ready to buy. If I was a seller, I would not accept your contingency offer.

    Bookmark   March 14, 2014 at 10:45PM
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rrah

I also would never accept an offer contingent upon a FSBO selling their house. The only exception would be if that house was under contract, and then I would demand to see the contract, know the buyers info, etc.

I do find it strange that the agent is saying this. I wonder if the seller's are aware of this firm's policy and have signed off on it.

    Bookmark   March 15, 2014 at 6:57AM
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juliekcmo

IMHO if you feel strongly that your current home will sell super quick and that you are qualified to sell it yourselves at an equal amount as if it were listed, then just sell it first, and then buy.

If that is not the case and you feel you have to sell FSBO because financially the deal falls apart if your current home doesn't sell for full price of the amount you have set, then you are not really a qualified buyer at this point for the house you want to buy.

From a seller's point of view, they need a offer that allows them to close on the sale and move. If you would not have the resources and/or be willing to carry 2 mortgages if your current home takes longer to sell, then your offer really is of no value to the seller, as it does not allow them to buy something else.

    Bookmark   March 15, 2014 at 9:24AM
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LOTO

The bottom line is that it is going to be the sellers decision if they will even accept an offer contingent on FSBO...might save yourself a lot of grief if you just have your Realtor call the sellers Realtor and just ask if the sellers will consider it.
In the instances where I have a listing and an offer is presented with a FSBO contingency I advise my sellers to give the buyers a short time period (2 weeks or so) to get the FSBO home under contract otherwise the buyers must list with a Realtor, remove the contingency, or cancel the contract.

    Bookmark   March 15, 2014 at 9:59AM
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PRO
Sophie Wheeler

You're not a buyer. And, listing FSBO because you ''have'' to get a certain dollar figure from the sale means that you won't BE a qualified buyer any time soon. There are just about .00001% of sellers that would accept your offer. And the ones that would have probably been on the market for years at an inflated price for their own house because they ''have'' to get a certain $$ for it.

Sell your house FIRST if you want to buy another. And stop dreaming of this house. You're in to position to buy it. Look ahead to getting things done so that ou can turn yorself from looky lou status to a position of strength with a cash offer because you have the sold proceeds in the bank.

    Bookmark   March 15, 2014 at 10:11AM
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SaltiDawg

I am a retired US Navy Submariner. During the course of my 24 years Naval Service, I had occasion to buy and sell in many different states - CA, MD, MA, CT, VA, WA, SC and MD again. One sale was FSBO and one purchase was FSBO. No issues.

Indeed, I did buy in Charleston with a FSBO Contingency on my home sale in the Seattle area.

EDIT: To clarify. When I made that offer in Charleston I already had a signed and accepted FSBO contract in hand. The contingency was on the deal going thru and closing.

However, I do have to agree that it is likely the rare seller that would accept that contingency.

This post was edited by saltidawg on Sun, Mar 16, 14 at 10:48

    Bookmark   March 15, 2014 at 8:08PM
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linda117117

I'm not sure what state you are in, but an office policy to "not submit ANY offer" doesnt sound ethical and in some states, probably not legal. As far as I know, ALL OFFERS MUST BE SUBMITTED to the seller. Ask to see something signed by the seller that your offer was presented. That being said, no good agent would recommend to their seller that they take the offer you are describing. Get your house under contract before you start submitting offers on another one.

    Bookmark   March 16, 2014 at 10:40AM
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louislinus

Like most things the story is more complex than that. The house we are interested in has been on and off the market for 2 years. It is overpriced. Our house should sell FSBO pretty quickly. We live in a small town with a large university. Our house is 2 blocks from campus and 4 blocks from downtown and we have an acre lot that is flat and all usable. It is the original farmhouse for the area and a unique and well known property. This is also the time of year that professors get their contracts for the upcoming year so there will be new people looking who will be at the university in the fall. It kills me to move but we have too many kids and this house has no closets and I can't go through a 6 month remodel and addition with 3 kids 2 dogs and 2 cats. It makes me twitchy just talking about it.

We have a prequal letter for the house from our mortgage broker and I had a photographer come out today to take pics for the listing. It sure feels serious! :)

I agree that in a regular subdivision FSBO can take a whole but I hopeful that the uniqueness of the property combined with current low inventory and spring selling season we will be in a good position. Time will tell!

    Bookmark   March 16, 2014 at 8:42PM
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louislinus

So many typos!

    Bookmark   March 16, 2014 at 8:45PM
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