FSBO buying home for myself not investing purposes

Philadelphia, PA · Member since 2020 · 5 posts · 1 vote

Hello everyone,

I am currently looking at a property in Philadelphia which is FSBO. I do not have any experience with FSBO's. We have met with the guy at the showing of the property and we got along very well we have a lot in common and he defiantly like us. We are working on getting pre approved this Monday. I am asking for some help on how to go about negotiating with him. We have been talking via text message. Do I negotiate through text or is that something to be done in person? Do I wait until the pre approval is done? Any advice helps!

Thank you

0 Reply

26 views

Most Popular Reply

Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

Just because it's a FSBO does not mean you should be doing a DIY job on your end, just because they want to. FSBO sellers are notoriously overpriced, under-repaired, and unrealistic. They will hide things from you, they won't want you to do inspections. Basically, you should not buy a FSBO without counsel and help, for a first buy as a homeowner. Get a local realtor to help and see if the FSBO will compensate a buyer's agent at 2 or 2.5% since they aren't paying a listing fee. Get a RE attorney to make sure you are protected in the contract and no matter what the seller says about the upkeep, do ALL inspections and do not give anything away because you think they like you and you like them.

[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro

Zen and the Art of Real Estate Investing59 Reviews

Website View Page

1 Reply

See this reply in the discussion

5 Replies

Jump to latestLatest

Sort by

Guifre Mora
Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
6y
Originally posted by @Kelly Klein:
Hello everyone,
I am currently looking at a property in Philadelphia which is FSBO. I do not have any experience with FSBO's. We have met with the guy at the showing of the property and we got along very well we have a lot in common and he defiantly like us. We are working on getting pre approved this Monday. I am asking for some help on how to go about negotiating with him. We have been talking via text message. Do I negotiate through text or is that something to be done in person? Do I wait until the pre approval is done? Any advice helps!
Thank you

Get everything in writing.
Agree with the seller as to the type of purchase contract that’s acceptable; most states have legally vetted contracts that laypeople use successfully. Ask the seller for a copy of the purchase contract he wishes to use. Get a state-approved purchase contract.

Write your offer based on your research and what you've learned from the seller during the times you've been at the house. Present the paperwork in person, opening the conversation in a positive manner. Explain your reasoning behind the price you're offering, and give the seller documentation backing up your numbers. Include your mortgage pre-approval letter and proof of funds Explain the contingency dates and leave the closing date open until you've discussed the seller's plans for moving. Submit a deposit check and make it out to the escrow company the seller wishes to use, never to the owner personally.

Pay attention to the contingency dates you include in your contract, especially if it’s for financing, and meet those deadlines to avoid losing your deposit. Book a home inspection immediately. In certain states, all contingencies must be fulfilled within x days of an executed contract; Agree, in writing, to extensions of the contingencies if necessary.
Ask for the name of the seller’s attorney handling his side of the transaction, if he has one. Employ your own real estate lawyer to verify your end of the deal and to be sure all the paperwork is being processed correctly. Let the attorneys work the finer points of the transaction to keep you separate from the seller and any emotional involvement he may have in his home.

Good luck

0 Reply
Joseph ODonovanPro Member
Property Manager · Ridley, PA · Member since 2017 · 427 posts · 449 votes
6y
@Kelly Klein If this is your first time buying a house, I would highly recommend you hire someone to represent you. It could be a local realtor or attorney. This person can negotiate on your behalf, draft the agreement of sale, and get you to the settlement table. They can also guide you with regards to a home inspection, title insurance and other issues that may come up during this process. Best of luck and feel free to reach out with any questions.
0 Reply
Jason Morris
Member since 2019 · 40 posts · 7 votes
6y
Originally posted by @Kelly Klein:
Hello everyone,
I am currently looking at a property in Philadelphia which is FSBO. I do not have any experience with FSBO's. We have met with the guy at the showing of the property and we got along very well we have a lot in common and he defiantly like us. We are working on getting pre approved this Monday. I am asking for some help on how to go about negotiating with him. We have been talking via text message. Do I negotiate through text or is that something to be done in person? Do I wait until the pre approval is done? Any advice helps!
Thank you

You should get pre-approved first to make sure you can even afford the home. But I recommend finding a realtor first. They can guide you through the process and what needs to be done/checked to make sure the home is to your liking. Also the seller pays for the realtor so to me it's a win-win.

0 Reply
Howard HerringtonPro Member
Realtor · Boston, MA · Member since 2014 · 159 posts · 75 votes
6y
Kelly, I am not familiar with your area but I can tell you as a realtor, that you definitely want to get a pre-approval first, otherwise what is the point in trying to negotiate or discuss anything if you cannot buy the house. Second, just make sure that you do consult with a realtor in your area to at least get an idea of what the houses are going for in that neighborhood and get a general idea of what you should be buying it for.
0 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
Just because it's a FSBO does not mean you should be doing a DIY job on your end, just because they want to. FSBO sellers are notoriously overpriced, under-repaired, and unrealistic. They will hide things from you, they won't want you to do inspections. Basically, you should not buy a FSBO without counsel and help, for a first buy as a homeowner. Get a local realtor to help and see if the FSBO will compensate a buyer's agent at 2 or 2.5% since they aren't paying a listing fee. Get a RE attorney to make sure you are protected in the contract and no matter what the seller says about the upkeep, do ALL inspections and do not give anything away because you think they like you and you like them.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.