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missfabulous
#mommyneedswine
Member since 6/09 10031 total posts
Name:
Colleen
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For sale by owner?
My parents bought their house directly from the owner (no real estate companies involved) and claimed they saved alot of money this way.
Does this save alot of money? What are the pros and cons of buying from the owner directly?
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Posted 1/31/11 3:07 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
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Re: For sale by owner?
Yes, it saves you money because closing costs can be slightly less (no real estate brokers involved) and you deal directly with the owner so your closing date may be faster ...
HOWEVER - there are more risks. You will need a good appraisal and a thorough inspection (foundation, plus a separate termite inspection). You'd also have to be the ball as to finding out things about the property that the Owner may not want you to know or have no idea they are supposed to tell you...In that sense, the seller is really the one facing more risk than the buyer.
As long as these bases are covered, the FSBO (For Sale By Owner) deals can be pretty sweet!
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| Posted 1/31/11 4:41 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: For sale by owner?
Posted by BatGirl9910
Yes, it saves you money because closing costs can be slightly less (no real estate brokers involved) and you deal directly with the owner so your closing date may be faster ...
!
the closing date is determined by the mortgage company and how fast they get the loan done and lawyers- so I am not sure how it would be faster
the closing costs for a buyer do not include a broker fee
the seller is the only one that saves money - not the buyer
the major risk with a FSBO is the house not appraising- the main reason people do not use a broker is b/c they can not afford to pay one and pay off the mortgage right now- pretty risky for a buyer
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| Posted 1/31/11 4:50 PM |
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Re: For sale by owner?
Posted by Beth
Posted by BatGirl9910
Yes, it saves you money because closing costs can be slightly less (no real estate brokers involved) and you deal directly with the owner so your closing date may be faster ...
!
the closing date is determined by the mortgage company and how fast they get the loan done and lawyers- so I am not sure how it would be faster...
Right, but wouldn't negotiation time be reduced somewhat? I had this experience when I was looking at FSBO homes a few years back - I remember telling a broker X price and then hearing back whether the Seller accepted/rejected my offer w/in a week or 2, and then I'd have another few days to consider the seller's counter-offer. For the FSBO properties, sometimes the seller would respond that very same day whether they would even entertain my bid.
I'm not sure how often this happens now, but my friends bought a FSBO and I was shocked at how quickly they closed on the house from the minute they made the initial offer.
Message edited 1/31/2011 4:54:13 PM.
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| Posted 1/31/11 4:53 PM |
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PrettyPeonies
GAW my baby boy <3
Member since 8/10 3874 total posts
Name:
Pino
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Re: For sale by owner?
I just bought my house, 4 months ago, from the sellers. I think you are getting some good advice. The process was a PIA b/c of the mortgage company. The sellers were awesome...a little weird....but very easy to work w/. The only thing they did that upset me was the husband kinda harassed me via e-mail to let him know how much we were putting down. Eventually my attorney had to call his attorney and tell them to stop asking. I would say that if you get a good feeling from the sellers, give it a go BUT make sure that you have a great team behind you (mortgage broker & attorney)
Please feel free to FM me if you have an specific ques.
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| Posted 1/31/11 5:21 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: For sale by owner?
Posted by BatGirl9910
Right, but wouldn't negotiation time be reduced somewhat? I had this experience when I was looking at FSBO homes a few years back - I remember telling a broker X price and then hearing back whether the Seller accepted/rejected my offer w/in a week or 2, and then I'd have another few days to consider the seller's counter-offer. For the FSBO properties, sometimes the seller would respond that very same day whether they would even entertain my bid.
I'm not sure how often this happens now, but my friends bought a FSBO and I was shocked at how quickly they closed on the house from the minute they made the initial offer.
I don't think you can assume negotiation time can be quicker b/c there are no agents involved
I get paid to get my client the best deal
I negotiate for a living- I ask things that you would never think to ask- I have access to information you would never have access to
who cares how long it takes if you get the best deal? what's a day or 2 to save thousands?
the #1 reason a house is FSBO today is b/c they didn't agree with the price a Professional told them it was worth
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| Posted 1/31/11 6:00 PM |
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RubyWoo
Complete.
Member since 1/11 1357 total posts
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Re: For sale by owner?
Posted by Beth
the #1 reason a house is FSBO today is b/c they didn't agree with the price a Professional told them it was worth
This was our experience. Every house that we saw that was for sale by owner was waaaaay overpriced. You would've thought we were looking at mansions. But, that was a few years back when the market was still very high. Don't know if it's changed at all.
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| Posted 1/31/11 6:04 PM |
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FirstMate
My lil cowboy
Member since 10/10 7790 total posts
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Re: For sale by owner?
We are selling our house FSBO. We had 3 realtors come in and tell us what they would market it for - two had the same number, one had slightly higher.
We are marketing it as the lower of the 2 numbers. If my house doesn't appraise for that value, we will have to reassess the situation obviously.
We look at it like if we end up selling it ourselves, we will save ourselves about $15K in broker fees. That's worth the chance to us.
We are negotiable within reason and if the right number comes by we will take it right then and there.
IMO, FSBO just removes the middle man. But, without question, it is more efficient and convenient to have the middle man for selling reasons.
Message edited 1/31/2011 10:28:43 PM.
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| Posted 1/31/11 10:25 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: For sale by owner?
We bought a FSBO 4 years ago so it was a very different market of course.
Anyway, we had a pretty easy transaction. I believe our house would have been priced more if it had been with a realtor based on what we were seeing for sale at the same time in our same neighborhood.
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| Posted 2/1/11 3:37 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: For sale by owner?
Posted by Beth
the #1 reason a house is FSBO today is b/c they didn't agree with the price a Professional told them it was worth
Many of the FSBO listings are probably with homeowners who are in no rush to sell. They will wait till they get "their price".
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| Posted 2/1/11 3:44 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: For sale by owner?
Posted by ave1024
Posted by Beth
the #1 reason a house is FSBO today is b/c they didn't agree with the price a Professional told them it was worth
Many of the FSBO listings are probably with homeowners who are in no rush to sell. They will wait till they get "their price".
most FSBO end up with a Realtor with in 3 weeks of listing
many actually need a certain number or they are short....hence not wanting to pay a Realtor fee
but stats show- and I just saw a chart in a class this am Realtors sell houses for 20% more on average
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| Posted 2/1/11 5:06 PM |
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ali120206
2 Boys
Member since 7/06 17795 total posts
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Re: For sale by owner?
Posted by Kelly9904
We bought a FSBO 4 years ago so it was a very different market of course.
Anyway, we had a pretty easy transaction. I believe our house would have been priced more if it had been with a realtor based on what we were seeing for sale at the same time in our same neighborhood.
Same here.
The only issue we had was that we weren't sure what we needed to do "next". Luckily, a good family friend was in real estate so she referred us to an inspector and a lawyer and helped us with any questions we had.
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| Posted 2/3/11 10:37 AM |
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