FSBO Accepted an offer on my first flip NOW WHAT

Member since 2018 · 10 posts · 1 vote

I finished my first flip, listed it and the next day got an offer that I accepted. We are meeting today to go over the sale but I’m not sure my next steps? He’s using a FHA loan so I know there’s a couple more hoops to jump through but do I just start with a purchase agreement? (Where should I get one if so) Title company, escrow, inspections I’m not totally sure of the steps here.

0 Reply

26 views

10 Replies

Jump to latestLatest

Sort by

Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
8y
@Tyler Keit I would recommend contacting your title company to ask what contracts they prefer- they may have a template. If no, I would recommend using your local Board approved contract from the local association of realtors...these are typically legalese, but offer the most protection. Aside from that, you're assuming risk unless you have an attorney you've consulted and have a contract that offers you adequate protection.
In your situation, I'd be sure to vet the buyer very carefully- confirm everything with his lender...using FHA requires jumping through a lot of hoops...you want to make sure the buyer is qualified before tying up your property for 45-days and he can't perform...
If you are comfortable with everything, just execute the contract and send it to your title company to start the title search- along with any earnest money (if there is any). Link the title company with the lender and make sure everyone's contact information and roles are known to the title company- they will take lead, but you'll need to manage everyone if you want the closing to go smoothly.
The buyer will require a property inspection as well as an appraisal...hopefully there are no big unforeseens since you have just renovated the property.
Shoot me a message if you get hung up.
Good luck!
937-979-7000
Realize Multifamily Group11 Review
View Page
0 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
Yes, you need to know how to talk to the buyers lender to see how solid his preapproval is, he Does have one, right? You need to know if the buyer submitted tax returns, W-2’s, bank statements etc.
Realize that an fha buyer can Not sign a purchase within 90 days of the date You bought the property, or it will never be funded.
0 Reply
Tyler Keit
OP
Member since 2018 · 10 posts · 1 vote
8y
@Jacque Sacramento I can’t imagine getting a better deal. I sold it for $69,900. the two realtors I talked to about listing the house said they would’ve listed it at $59,900 and $64,900. So I’m more than happy to take 69,900 without paying a realtor. Pigs get slaughtered
0 Reply
Tyler Keit
OP
Member since 2018 · 10 posts · 1 vote
8y
@Wayne Brooks Thank you for your advice. I know he is pre approved for more than what I’m selling my house for. I did not know the fact about having to buy it 3 months after I bought it. That’s good to know though
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y
Originally posted by @Tyler Keit:
@Jacque Sacramento I can’t imagine getting a better deal. I sold it for $69,900. the two realtors I talked to about listing the house said they would’ve listed it at $59,900 and $64,900. So I’m more than happy to take 69,900 without paying a realtor. Pigs get slaughtered
And will you be able to get it to appraise?
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
0 Reply
Tyler Keit
OP
Member since 2018 · 10 posts · 1 vote
8y
@Brandon Sturgill Thank you for the advice. He ended up bringing in his realtor which I sais Im not payIng for. But I went to the title company beforehand and they gave me the same papers the realtor brought to the meeting.
0 Reply
Tyler Keit
OP
Member since 2018 · 10 posts · 1 vote
8y
@Russell Brazil We’ll find out next week when the mortgage company sends their appraiser.
0 Reply
Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
8y
@Tyler Keit realtor fees are always negotiable...make the buyer pay his agents fee...or build them into the cost if you can...if an agent is the reason your property went in to contract and closes, some sort of compensation would be appreciated, I'm sure...
937-979-7000
Realize Multifamily Group11 Review
View Page
0 Reply
Tyler Keit
OP
Member since 2018 · 10 posts · 1 vote
8y
@Brandon Sturgill Yes I agree they should be compensated. Further I get in the process the more I’m appreciating a middle man It definitely kept the negotiations moving forward and also the buyer agreed to pay for him and we just wrote up all the expenses in the mortgage so nothing out of the buyers pocket. The one thing the realtor is doing now is listing with his remax office on the MLS at a higher price to help the appraisal go through. The inspection is in an hour and the appraisal is scheduled for Monday morning. 🤞
1 Reply

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