How to buy a For Sale By Owner property

Question

Greeting BP Community, I'm planning to buy a For Sale By Owner property. Need your advise.

Property Info: Its located in California. Its own by a real estate broker. They are offering the property "as-is" but it has multiple issues that I want to negotiate on (need foundation inspection, missing fences, clean up).

Questions: Should I get a lawyer to help with the transaction? Will a real estate agent work on these deals with a certain fees? What other resources should I reach out to? What should I be looking out for?

Thank you so much for any inputs and advise!

Mindy Jensen · Answer

@Steven D. , you can also use a real estate attorney. If the seller is an agent trying to sell FSBO, that means they most likely don't want to pay commission.

If you found the property by yourself, and didn't have any agent help, the seller may balk at paying an agent.

Have you had conversations with the seller yet? Did they ask you if you were using an agent? If they did, and you said no, you may end up paying the agent's commission yourself.

Cortney Jones · Answer

Agree with @Ciera Hutson, just be sure that you have a WRITTEN Buyer's Agency agreement in place with your buyer's agent. The seller is an agent/broker and shouldn't balk at paying a buyers agent fee. They do that all day long. If they do, then I would be concerned as to why they don't want someone representing you and your interest. That would be a red flag.

Also, make sure the buyer's agent is from a different brokerage office, just to be safe and protect yourself further.

If you still want the house and they aren't willing to pay buyers agent commission, then definitely use an attorney and a good home inspector and have seller pay for home warranty, just in case.

Ciera Hutson · Answer

You just need a buyers rep. The seller pays all the fees. Just make sure to verify that they are paying a buyer's commission. If not, then maybe an attorney. Or just wait, most FSBO don't sell and they end up getting listed. Then you can work with professionals that know what they are doing. Buyer beware w/ FSBOs.

John Murray · Answer

Find an agent to contact him , and have them tell the seller he has a buyer that might be interested , and if so, will he ( Buyer's Agent ) be protected )paid a commission. If so, put offer through that agent after your inspection in another name / (LLC) .

Steven D. · Answer

@Cortney Jones - Thank you for your inputs. I'm getting an inspection next week on the house. The seller does not want to pay for agent commission. I am talking our a few agents I know to potentially work with them on this deal. This is my first post on BP, and the feedback really helps to guide me in the right direction.

Steven D. · Answer

@Mindy Jensen, thanks for your feed back Mindy. Yes, the owner is an agent and most likely will not want to pay for selling fees. I'm meeting with him today to see what he wants for the property and what terms. Then after I will decide whether to work with a real estate attorney, or an agent. For my first deal with FSBO, I probably need someone to look over my shoulder.

Ciera Hutson · Answer

@Steven D. I have a few questions for you so I can be sure to recommend the best person for the job.

1. Where in San Jose are we talking about?

2. Are you already pre-qualified?

Steven D. · Answer

@CieraHutson Thank you for your feedback. Yes, I'll be more than happy to talk to your contact. I'm located in the San Jose area. You can PM me if you know someone here.

Ciera Hutson · Answer

I used to work in CA and I have several contacts I can put you in contact with. No obligation but it might be worth a conversation.

Ciera Hutson · Answer

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How to buy a For Sale By Owner property

How to buy a For Sale By Owner property

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