FSBO

4 Replies

Every home purchase I have made has been with the assistance of my Realtor. If I come across a good for sale by owner (FSBO) what do I do? Do I download a purchase agreement from Legal Zoom and always have it available? Do I just call a title company and have them investigate by purchasing title insurance? What do I look for? What do I avoid?

It seems many of you do this frequently, but it looks like an area where one could really be taken advantage of if you don't know what to do.  

Mark Forest The seller might pay your agent a fee if you want to use the agent to facilitate the contract.

The easiest route would be to walk into a title company with just you and the seller to write up the escrow instructions.


Frank

Frank Romine, Real Estate Agent in CA (#01957844)
Originally posted by @Frank Romine :

@Steve Might 

The easiest route would be to walk into a title company with just you and the seller to write up the escrow instructions.

I know what escrow is, but what do you mean be escrow instructions?  If we use the purchase agreements at the Title Company how can I be sure there is no disadvantage to me?   

Not sure about Michigan, but here in Texas, the State produces a Single Family Contract that is downloadable from their site.  Of course they advise you to use an agent or attorney, but it is fill in the blank.

If you walk into most title companies here, they will hand it to you to fill out, and once signed by both parties, they will process the order and get it closed for you.

Also, check with your agent, if you have done all the work already, they may settle for a small fee to take care of it for you, especially if you have an ongoing relationship.  It all depends on what their managing broker allows them to do.  Some will, some won't.  

I do it all the time for established clients.  The pay back is, when it sells, they use me to do it or let me manage on the rental end.

Mark Forest

 I guess it depends on your level of comfort, type of properties, risk. The title company will have standard escrow instructions, fill in the blanks to transfer title.  I have used the escrow instructions, a one page contract and the standard realtor contract.  

The safest route would be to use your standard state realtor contract and always get title insurance.

Frank

Frank Romine, Real Estate Agent in CA (#01957844)

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