Help with making offer to fsbo

raya7694July 14, 2010

We really like a house that has been listed for 6 months fsbo at 299,900. We don't want to use a realtor to save money so how much should we offer and how do we make the offer? Email, fax, phone? Never negotiated without a realtor.

TIA!

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terriks

Does this mean that you sold your house? If so, congrats!

    Bookmark   July 14, 2010 at 8:54PM
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berniek

"We don't want to use a realtor to save money so how much should we offer and how do we make the offer?"

A good Realtor would know the value of the property and know how to make an offer based on that knowledge.
Do you know how much this home is worth? How much money do you think will you save by not using a Realtor and why?
If you don't use a Realtor, at least use an attorney to guide you through the technical aspects of buying.
Good luck!

    Bookmark   July 14, 2010 at 9:00PM
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raya7694

According to tax assessment they bought the house 3 years ago for 310,000. I would love to use a realtor but I know the cost will be passed to me because it is fsbo. I have an attorney.

    Bookmark   July 14, 2010 at 9:18PM
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graywings123

Don't make an offer to buy a house until you have sold the one you have been discussing here on numerous threads.

    Bookmark   July 15, 2010 at 8:36AM
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creek_side

You can do it two ways. One way is make a formal written offer to purchase at $XXXX, with YYYY conditions, offer to expire on ZZZZ, etc. It should be at least looked over by your attorney.

The other way is to sit down with the sellers and informally negotiate a deal. Once both sides are satisfied, a written contract is drawn up and signed. The contract should be written or approved by your attorney.

We sold land FSBO using the latter method. The buyer's attorney drafted the contract. That almost sank the deal, as he went nuts adding all manner of bizarrely worded terms, conditions, and ridiculous disclosures that I refused to comply with. We then started negotiating all over again.

Finally, the buyer told the attorney to get it on one page and leave out everything I was objecting to. Once that was done, we sold the property.

That will be the last time I sell anything without insisting on me or my attorney drafting the contract.

BTW, the buyers' attorney tried to get me to agree to having everything negotiated attorney to attorney, all at billable hourly rates of course. I refused.

I told the buyers that once we had a contract worked out to both our satisfactions -- and they had signed it -- I would have it looked over by my attorney. If he approved, I would sign it. And that's how we did it.

I spend less than $100 having the contract reviewed by my attorney. The buyers spent thousands, from what I could gather at the time.

The moral of the above is to remain in control in a FSBO situation, whether buyer or seller. Use an attorney to make sure you get it right, but don't let him sink the deal by adding a lot verbiage that isn't necessary.

    Bookmark   July 15, 2010 at 8:49AM
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brickeyee

"According to tax assessment they bought the house 3 years ago for 310,000."

That says nothing about the present value of the property.

Closed sales of comparable houses are used to appraise properties, not 3 year old sales.

Tax valuations are not a good indicator either.

    Bookmark   July 15, 2010 at 8:49AM
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raya7694

We are negotiating a deal on our home.
How do I know the value of the home with comps when I don't have a realtor?

    Bookmark   July 15, 2010 at 9:25AM
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graywings123

If you are still negotiating the deal on the house you are trying to sell, it's too soon to be making an offer on another house. There is so much that can go wrong with a house sale these days. Avoid getting emotionally invested in any potential new house until the old one is wrapped up.

    Bookmark   July 15, 2010 at 9:34AM
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creek_side

If your are selling your own home FSBO, have an appraisal done by a licensed appraisal firm. They aren't that expensive.

You should have determined your home's value by some reasonable method before putting it on the market. You can do your own market research on sold properties, but it takes time. Sale prices of real property are public record by law, except in Texas. In some places, you can do almost everything on line.

    Bookmark   July 15, 2010 at 10:03AM
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terriks

Whatever you offer on the new house (and I agree that it's best to wait until you have an iron clad deal on your existing home) make sure that you have a clause in your offer that the home must appraise for at least the purchase price.

    Bookmark   July 15, 2010 at 12:41PM
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lyfia

For comps I see a couple of ways to obtain this.

Contact a realtor and ask if for a fee they'd give you comps. I can't imagine it would be nearly the amount as the commission you'd have to pay to hire one. (Assuming the sellers aren't willing to pay a realtor).

If you live in an area where sales prices are public record you could go and pull your own comps. It has been mentioned here in the past, but I can't remember if it was court or somewhere else these might be located. Start with asking the county assesors office maybe. I live in an area where it is not public record so I can't help with where to find it, but would think it is an option.

Contact an appraiser and pay their fee to get comps and a drive-by appraisal.

As for the offer if you have an attorney they should know what format to use, if they don't then I would probably look for a different attorney.

    Bookmark   July 16, 2010 at 10:08AM
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raya7694

So we thought we were close to an offer and it turns out we are in the top three again and the people have not made a decision. It has been two weeks since their first showing. We dropped the price $25,000.

So my quesion is do you offer any incentives besides the price?

    Bookmark   July 21, 2010 at 2:58PM
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