Home for sale by owner...

[Indy_Guy_77]

Anyone not go through a realtor to buy a house?

Recomend this avenue for a "rookie"?

Is there a "home buying for dummies" book out there?

What advantages does going through a Realtor offer that can't be done in a private sale?

Lots of questions, huh?

-J-

 

[antdog/zook]

minus their fee for 1.

 

[jennybird]

Well, for one, a realtor can answer all of your questions. And believe me, you'll have plenty more. There is some info here: REALTOR.com: Why Use a REALTOR®?

My number one reason for using a Realtor? MARKETING. Let's face it, most buyers use Realtors to find homes. Those Realtor's are searching for homes that are listed with other Realtors. No, it's not a conspiracy, it's the computer system they all use via MIBOR. If your house isn't in the system, it won't come up on their search, and their buyer won't see it.

My number two reason for using a Realtor? LIABILITY. Realtors know all the ins and outs. They know who is supposed to pay what, when, why and how. They know all the legal ramifications and details including how to write a binding contract, title insurance, inspections (basic home, termite, radon, etc.), qualifying a buyer for you, showing your home, home warranties, surveys, and much more. They can read a HUD statement and tell you if it's correct or not (most of the time, the first one is not.) Their job is to relieve you of all the headaches you would otherwise endure as a FSBO.

Hint, if you already have a buyer that's interested, you may be able to get a Realtor to handle the paperwork at a greatly reduced fee. If you don't, it's worth the money to have the Realtor deal with finding a buyer for you.

Yes, it's true, there are quite a few Realtors who don't know their a$$ from a hole in the ground. The key is finding one that knows what they're doing. Don't just hire the first one you meet. Going with a referral is your best bet. Do you have any friends/family that has sold a home recently who was happy with their agent?

I know, I know, Realtors get paid WAAAAY too much. Right? Not really. What most people don't realize is that Realtors only get a fraction of the money you pay them. Most of it goes to office fees (which are HUGE), advertising/marketing fees (even HUGER), E&O insurance, signs for your front yard, MIBOR services, continuing education (which is required), and the list goes on. Everything comes out of their pockets. So don't freak out when you see them getting a check for 5-7% of the sale price.

And with that, I wish you good luck!

 

[Rookie]

If you are a first time buyer, do not try to save money by going around a realtor.
When I bought my first home, I used a realtor. She suggested that I should get a inspection done before I purchased. I told her that I didn't see the sense in it because it was a new house. She explained that it was better safe than sorry. So, grudgingly, I shelled out the $300 to have a brand new home inspected. Fast forward to the middle of winter, and we are in our new home using KEROSENE HEATERS TO HEAT!!! The furnace that the builder was way too small. We called the builders and they told us that it was the right size for our home. We pulled out our inspection sheet, and, in bold letters, it stated that the furnace was not adequate for our home. When we showed them the inspection report, the builder paid for a load calculation, and found out that they had put the wrong size in.

If it hadn't been for my realtor, it could have been a costly fight...

 

[jennybird]

When buying a house, you don't pay the realtor anyway... The seller does. Buyers get to use realtor's free of charge so-to-speak.

 

[Indy_Guy_77]

Yeah... The situation that my wife and I find ourselves in:

We literally stumbled across a 1920sq, 4BR, 2.5BA tri-level with a .5 acre lot (with mini-barn) in a desireable Greenwood neighborhood (Center Grove schools) that's being sold by the owner...for a lot less than they can get for it.

My wife and I are good friends with another couple in that same neighborhood. Our friend is "best friends" with the wife of the couple selling their home... she confirms that they're undervauling their home in order to maximize THEIR returns (not having to pay two realtors...theirs and ours) out of the sale price.

My wife and I aren't exactly 100% ready, but literally, this deal is almost too good to pass up.

And no, I won't tell any of you where this place is.

-J-

 

[Rookie]

Yeah... The situation that my wife and I find ourselves in:

We literally stumbled across a 1920sq, 4BR, 2.5BA tri-level with a .5 acre lot (with mini-barn) in a desireable Greenwood neighborhood (Center Grove schools) that's being sold by the owner...for a lot less than they can get for it.

My wife and I are good friends with another couple in that same neighborhood. Our friend is "best friends" with the wife of the couple selling their home... she confirms that they're undervauling their home in order to maximize THEIR returns (not having to pay two realtors...theirs and ours) out of the sale price.

My wife and I aren't exactly 100% ready, but literally, this deal is almost too good to pass up.

And no, I won't tell any of you where this place is.

-J-

I would still suggest at least talking to a realtor. Also, home inspection.

 

[Hoosier Gun Coat]

Recommendation for 1st time home buyer: GET AN INSPECTION by a qualified inspector. The inspector can tell you more about the house than a realtor. A realtor can tell you how wonderful everything is, while an inspector can tell you what is wrong. An inspection can come in handy when negotiating final price as well.

 

[Indy_Guy_77]

Silly me... But I thought that a home inspection was one of those "duh?" things?

Thanks for the replies thus far. I 'perciate it.

 

[BIG TIM]

The operative phrase in Hoosier Gun Coats post is QUALIFIED INSPECTOR. Not all inspectors are alike. This is because until recently, there were no common standards for home inspectors so any Yahoo could call themselves an inspector. They did not have to be truly qualified. The way they dodged liability was by using vague and ambiguous language in their disclosure forms which were unique to each inspector.

 

[VanillaThunder]

as someone who has purchased two houses in the last five years, as well as currently taking classes to become a realtor, i have to say, do not buy or sell without a realtor.

matter of fact, i became so impressed with my realtor, i have changed careers midway through my 30's to join his firm.

and don't think about buying without an inspection. my .

Well, for one, a realtor can answer all of your questions. And believe me, you'll have plenty more. There is some info here: REALTOR.com: Why Use a REALTOR®?

My number one reason for using a Realtor? MARKETING. Let's face it, most buyers use Realtors to find homes. Those Realtor's are searching for homes that are listed with other Realtors. No, it's not a conspiracy, it's the computer system they all use via MIBOR. If your house isn't in the system, it won't come up on their search, and their buyer won't see it.

My number two reason for using a Realtor? LIABILITY. Realtors know all the ins and outs. They know who is supposed to pay what, when, why and how. They know all the legal ramifications and details including how to write a binding contract, title insurance, inspections (basic home, termite, radon, etc.), qualifying a buyer for you, showing your home, home warranties, surveys, and much more. They can read a HUD statement and tell you if it's correct or not (most of the time, the first one is not.) Their job is to relieve you of all the headaches you would otherwise endure as a FSBO.

Hint, if you already have a buyer that's interested, you may be able to get a Realtor to handle the paperwork at a greatly reduced fee. If you don't, it's worth the money to have the Realtor deal with finding a buyer for you.

Yes, it's true, there are quite a few Realtors who don't know their a$$ from a hole in the ground. The key is finding one that knows what they're doing. Don't just hire the first one you meet. Going with a referral is your best bet. Do you have any friends/family that has sold a home recently who was happy with their agent?

I know, I know, Realtors get paid WAAAAY too much. Right? Not really. What most people don't realize is that Realtors only get a fraction of the money you pay them. Most of it goes to office fees (which are HUGE), advertising/marketing fees (even HUGER), E&O insurance, signs for your front yard, MIBOR services, continuing education (which is required), and the list goes on. Everything comes out of their pockets. So don't freak out when you see them getting a check for 5-7% of the sale price.

And with that, I wish you good luck!

repped.

 

[mtk469]

My wife and I purchased our first house from a private party without a realtor. As everyody else has mentioned we used a Qualified Inspector. We also used our Lawyer to write and offer / contract. The thing that was a pain was getting all the title work etc. together so we could close the deal. It all worked out in the end but there was a fair amount of leg work involved that a realtor would typically take care of. After we had finalized the deal and moved in, I ran into a friend that was a realtor. He told me that some reality firms with help with the process of a By Owner purchase. For either a flat fee or a much smaller % than the typical 6-7% for the normal process. Could be something to look at.
My $.02
Matt

 

[squarepeg]

I typed this up last night, but guess I forgot to hit the send button:

I bought my first home a year and a half ago without any Realtors. The couple selling had arranged through a local realty agency for them to do the closing paperwork for a small fee. I think it was around $300 to $400 if I remember right. There person who did the closing wasn't a Realtor, just some kind of closing agent or accountant type person. Saved money on both sides as I was able to offer a lower number and they got more for the sale. My house is in good condition, although I have had a few first year nightmares due to the whole town flooding, nothing could be done about it.
Having said all that, I would not recommend doing this your first time buying or selling. There are way too many questions that I had and didn't get enough answers. Its kinda like when you learn to ride a bike, you want someone holding on just in case you tip over. I was lucky that the sellers were for the most part honest about the condition of everything. They didn't embellish the truth too much. I had a very poorly written contract to buy the house, which caused me to be very nervous on the day of closing. Hindsight is always 20/20, so good luck with whatever way you choose.

 

[jennybird]

Ok, coupla things.

Recommendation for 1st time home buyer: GET AN INSPECTION by a qualified inspector.

This goes for ANY buyer no matter how many homes they've bought/sold.

We also used our Lawyer to write and offer / contract.

I do not recommend this. In some states it is normal and customary (and occasionally required) that an attorney writes up real estate deals. Here in Indiana (and many other states as well), attorneys aren't nearly as qualified as you might think. Attorneys here are not experts in matters of real estate... Realtors are. As mentioned earlier, they also won't do any leg work for you either as Realtors do. So I strongly suggest that you use a Realtor over an attorney in this state.

There person who did the closing wasn't a Realtor, just some kind of closing agent or accountant type person.

Realtor's don't "do" closings. Title Insurance companies do. If you heed any of the suggestions on this thread at all, heed this one... always always ALWAYS use a title company. ALWAYS! Here, lemme say that again... ALWAYS!

Ok, back to your specific situation. Get a realtor to handle the contract and details. (If you're on the West side I can give you a name and number of someone to call.) You won't be charged the normal fees, but probably something like a $500 flat rate. Of course, don't quote me on that figure... that's ultimately between you and the Realtor to decide. Also remember that the fee should be worked into the final closing costs so it's not like you have to pay that out of pocket or anything.

There, two more cents.

I'll send you a bill for my consulting fee.

 

[mtk469]

Ok, coupla things.

This goes for ANY buyer no matter how many homes they've bought/sold.

I do not recommend this. In some states it is normal and customary (and occasionally required) that an attorney writes up real estate deals. Here in Indiana (and many other states as well), attorneys aren't nearly as qualified as you might think. Attorneys here are not experts in matters of real estate... Realtors are. As mentioned earlier, they also won't do any leg work for you either as Realtors do. So I strongly suggest that you use a Realtor over an attorney in this state.

Realtor's don't "do" closings. Title Insurance companies do. If you heed any of the suggestions on this thread at all, heed this one... always always ALWAYS use a title company. ALWAYS! Here, lemme say that again... ALWAYS!

Ok, back to your specific situation. Get a realtor to handle the contract and details. (If you're on the West side I can give you a name and number of someone to call.) You won't be charged the normal fees, but probably something like a $500 flat rate. Of course, don't quote me on that figure... that's ultimately between you and the Realtor to decide. Also remember that the fee should be worked into the final closing costs so it's not like you have to pay that out of pocket or anything.

There, two more cents.

I'll send you a bill for my consulting fee.

You are correct about most attorneys we actualy a real estate attorney at the recomendation of a realtor that didn't want to get involved in our purchase even for a fee.

 

[jennybird]

realtor that didn't want to get involved in our purchase even for a fee.

Seriously? What kind of shady deal were you into man?

 

[mtk469]

Seriously? What kind of shady deal were you into man?

Nothing shady. To this day I am not sure why he wasn't interested? Probably should have looked for a different realtor to use but it all worked out in the end. We have since sold that home and purchased a different one with the use of a realtor (My father-in-law)

 

[jennybird]

Nothing shady. To this day I am not sure why he wasn't interested? Probably should have looked for a different realtor to use but it all worked out in the end. We have since sold that home and purchased a different one with the use of a realtor (My father-in-law)

I can understand that. There are some realtors who don't like to mess with those kinds of deals. Something else to consider... locating a "new" Realtor. They can use the experience, always need the money, and their broker that can help them through the process too to make sure nothing goes wrong.

 

[smokingman]

I am in fact a Real estate broker.I became an agent shortly after buying my first house,and realizing the Realtor I had put there interest well in front of mine.I paid nearly 4% in closing costs,almost 8% in other fees,and had a horrible mortgage. I did not understand the laws or any of the things I had signed. So I took classes and received my license in 2005.In 2006 I repeated this and took Broker classes,and state exams ect...and became a Licensed broker.There is no way for someone who does not understand the laws governing real estate to protect themselves. That said not all agents are what I would consider honest,or educated enough to help watch out for your interest.I would not recommend a first time buyer to go it alone.The seller may be honest and it may be a great deal,but what about your bank? They are there to make money...off of you. I have made clients get up and leave a closing(2 times...and neither time where they happy). In the end both saved thousands of dollars,and where very happy I made them leave the table. It can mean the difference between paying 10% in fees and 1%(I am talking about fees from the Bank,that does not include Realtor fees which vary from 3-9 %).Take those fees over the life of your loan,they add up to you saving thousands of dollars. As a Realtor I have never charged more than a 5% fee for selling a home,and have never charged a buyer premium of more than 2.5%.In short a qualified buyers agent could save you money and protect your interest.

 

[bigcraig]

I bought my home without the services of a real estate agent.

Sure, I had to do some leg work but it wasn't a big deal.

Just do your research and you will be fine.