How do you make an offer on a FSBO house?

Question

Do I need a lawyer, agent or what? Should I make the inital offer verbal or in writing? The property is an estate.

Answer 1

You need to make a written "offer to purchase." That's the next step. (You can buy a pre-written form at the first link below, for $9.95. You could get one at an office supply store for about $0.85.)

Then, you need to get the seller to sign that offer. This then makes a legally binding agreement.

DO NOT TALK TO A REAL ESTATE AGENT! Even responding to a Real Estate agent on this site may constitute a binding agreement. All real estate agreements must be in writing. But an agreement to be represented by a real estate agent does NOT have to be written (it almost always is, because it makes the real estate agents case easier.)

You do NOT need an attorney, you do NOT need a Real Estate Agent. (You may want an attorney--but don't believe you must have one!) Real Estate agents know how this deal is supposed to work, and they can make the transaction more "fluid" because they keep the processes flowing each time a hurdle is reached. An Attorney will find ways to keep the deal from happening--because he is paid to find things that can go wrong. The more "issues" he finds, the more he is paid. But you do not need either.

After the "Offer to Purchase is made" you then just have to pay for the house. A Warranty Deed is filed at the courthouse, showing the seller has passed title to you.

Here's a great secret (if you are getting a mortgage) the MORTGAGE BROKER or the BANKER have as much at stake in getting this transation done as you do. Let them take the responsibility of making the deal "fluid." Let them help you over whatever hurdles exist.

The second link below is to a ludicrously long article on home buying. About two-thirds of the way down there is a paragraph or two that are pertinent. Look for the heading, "Making an Offer."

Answer 2

I think the key for you is knowing what to offer before you contact the seller. Do your research on the area first, and if the property has been on the market longer than others, it is probably over-priced, as is often the case with FSBOs. At the very least you should be able to get 3-6% below comparable properties because they are not paying a real estate commission, and if it is a distressed sale, then you might get 20% below market, but shoot for 10% as your final realistic goal.

Buyer beware in estate deals that are FSBO as they are usually difficult because there are multiple family members involved and without a realtor listed property, you won't have full disclosure.

What another person suggested about getting a realtor...if the seller doesn't have it listed, they are less likely to cooperate with a realtor and pay any commission, so I don't know if a realtor will bear any fruit for you, and in fact it may work against you in this situation.

As far as the offer is concerned, verbal is worth the paper it's written on, and would not be taken seriously. You must write all offers to buy real estate, and there are plenty of forms online and at your local Office Depot. Use a standard real estate offer and contract form and fill it out yourself.

If the seller is serious and your offer isn't insulting, you will get a counter offer, but don't expect your first offer to be accepted. Once you get a signed acceptance of your offer, simply take it to a title company or a real estate attorney if your state requires one, and open an escrow.

The lawyer or escrow officer will handle all the hard work from there.

Depending on your financial situation...and for the sake of argument, I'm assuming you're not a cash buyer, have your pre-approval letter from a lender before you make your offer. Sellers need to know that you can actually complete the transaction, and a pre-qualified buyer is golden compared to someone just fishing for a deal without anything to back up the offer.

As a real estate investor for 25 years, I've seen it all, including buying estate situations, and the bottom-line is, if you get started investing in real estate you will build real wealth over the long run, so go for it!

Robert Noakes
Real Estate Investment Consultant
Sr. Mortgage Planner
415.652.8112

Answer 3

You can save money and have your loan officer walk you through it. Don't pay an attorney or real estate agent. I recommend First National Banc Corp. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a First National loan officer will contact you within 24 hours. Good luck.

Answer 4

unless they are offering a % to a realtor do not get a realtor involved if you do some one is going to have to pay their fee and it will not be the seller, just call the number on the fsbo and make an offer

if they accpet then you can get a lawyer to help you or a title agency

Answer 5

Knock on the door or call the home phone number if provided. You don't need anyone to make an offer or settle at a price. You will need a lawyer after you set a price and have an aggrement, to set up all the legal aspects of transfering an estate title.

Answer 6

I recomend getting a Realtor. He can submit the offer for you and a well trained realtor can help you in the negotiating process. By the way, as a buyer, a realtor's service is free of charge to you. He or she gets paid by the seller when the deal is done.

Answer 7

Almost sure that you might find every financial solution at= loanhome.info-

RE How do you make an offer on a FSBO house?

Do I need a lawyer, agent or what? Should I make the inital offer verbal or in writing? The property is an estate.

Answer 8

The estate will be represented. If you have to ask this question, then you need representation also.

"When I take out my own appendix, where do I make the first incision?" .... see what I mean?

Answer 9

you can get a realtor and ask them just to do the paperwork. they will have all the info you need, and you will just pay them a fee not a commision % good luck!