I'm a first time homebuyer and I am ready to make an offer on a home. The sellers have it up FSBO, and I am not going to use an agent. How do I make the offer? Verbally? Write up an offer letter and bring it with me when I look at the property again? Over the phone after I look at the property again? I have a library book that helps me out with writing up contracts that occur after this phase...but am clueless as to how to make my initial offer!
2007-03-22 08:02:07 · 7 answers · asked by R 1 in Business & Finance ➔ Renting & Real Estate
There is a form you should fill out, and it is probably specific to your state.
HOWEVER, you should get a real estate lawyer, and he will draft it up. You'll need a lawyer for the closing, anyway. Usually this is all included in the lawyer's flat fee, which will probably be about $500.
The lawyer isn't on your side to help you with the details, though, so anything you want or expect you should tell him when he drafts up the offer. Example: window dressings are usually included with the house, so make sure that's in the offer.
Once you have the offer, you deliver it to the owners. The offer has a specific time period for which it is valid, so use this to leverage them into lower prices - especially with the current buyer's market. Don't be afraid to make the initial offer low.
Good luck!
2007-03-22 08:12:02 · answer #1 · answered by fail r us 3 · 0⤊ 0⤋
A real estate contract must be in writing (to be enforceable).
How are you basing your bid price on? Do you have an understanding of the market prices of properties in the neighborhood? The seller may be asking way too much for the property.
I would hire a Realtor to assist you with this. I am not saying pay a full commission, but look for a Realtor that does appraisal work and find out how much they would charge you to assist with determining a fair market price. If you can not find someone, look at listings of houses in the area (listed with Realtors) and try to get an idea at which houses are selling for.
After determine what you want to offer, I would suggest hiring an attorney to draw up the contract and represent you during the transaction (always have a lawyer when purchasing property!).
2007-03-22 08:20:10 · answer #2 · answered by cramer.fan 2 · 0⤊ 0⤋
A contract must be in writing, signed by all parties and contain all the terms that you want & must be in a form that a lender will accept. Most seller's will not sign without a substantial deposit. As the seller doesn't have an agent, who is going to hold the deposit? Do you trust the seller? You already know s/he's a cheapskate because s/he's selling without an agent. There are a lot of pitfalls in a deal like this. You don't need an agent. A lawyer will cost less & give you greater protection. Presumably this house is going to cost a LOT of $$. It is really silly to risk so much without having the protection of a lawyer.
2007-03-22 11:27:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would first come to a verbal agreement with the seller. It can be in person, or by phone, but in person would be best. Then draw up a contract ( blank contracts are available at some office supply stores), or have a lawyer draw one up for you.
If this is too much for you to handle, then talk to a Realtor. It may cost you less in the long run, and help you avoid a costly mistake. It could well be that a FSBO seller would agree to compensate the agent, then it wouldn't cost you anything.
2007-03-22 08:12:45 · answer #4 · answered by cottagstan 5 · 0⤊ 0⤋
Make sure that if you make an offer to have it in writing, and if they accept, make sure you have an org. signed copy also. You can get the offer to purchase for sale by owners by searching on the internet. Most sellers will let you see the property again, and also do a walk through before closing. If they are leaving any personal property make sure that in on the contract. I am not sure what state you are in, but you can in North Carolina have a realtor represent you and he or she can ask the seller to cover the commission for you. You can do Verbally but to be legal and enforceable it needs to be in writing.
2007-03-22 09:46:52 · answer #5 · answered by Broker Lisa 2 · 0⤊ 0⤋
If you get an agent, the seller is required to pay the commission. So you have someone experienced on your side that you don't have to pay for!
The link below takes you to a FREE residential property contract from the Microsoft template website. You can download it in Word format.
When you have a ratified contract, you will need to give a copy to a title/settlement company and your lender. You may want to have your lender recommend a title company.
I work for a real estate company in MD so let me know if you have any questions. If you want, I can send you a blank MD contract you can look over and base your contract on. I'd be more than happy to help you!
2007-03-22 08:25:10 · answer #6 · answered by irin997 2 · 0⤊ 1⤋
You need to do three very simple things to cover all your questions and fears.
1. Get an attorney.
2. Get an attorney.
3. Get an attorney.
2007-03-22 08:16:57 · answer #7 · answered by open4one 7 · 0⤊ 0⤋