FSBO transactions , What was your experience?

6 Replies

Hi everyone,

I would like feedback from those that have successfully closed on FSBOs.   How did you negotiate? What did you find was the biggest hurdle getting to closing table? Any tips approaching them?  

I'm really interested as I've not done one, all my transactions have been either listings on MLS or realtor friends.

Thank you in advance! 

FSBO transactions, What was your experience?

Half the time it's fine, the other half when no one knows what they are doing and there's no agents doing the hand-holding...

Yes, if the contract says "page 5 of 6" at the bottom, we need all 6 pages, and no you can't "negotiate" to hide parts of the contract from the underwriter. Yes, the contract needs to be signed by ALL parties. No, there shouldn't be a rooster at the property that attacks the appraiser, and yes the utilities should be on and functional when the appraiser shows up. Super basic 101 level stuff like that. 

Originally posted by @Nina Hayden :

Hi everyone,

I would like feedback from those that have successfully closed on FSBOs.   How did you negotiate? What did you find was the biggest hurdle getting to closing table? Any tips approaching them?  

I'm really interested as I've not done one, all my transactions have been either listings on MLS or realtor friends.

Thank you in advance! 

I have both bought and sold a home FSBO within the last year. Very simple transactions and very easy to figure out. I handled all the paperwork for both transactions.

Do not let a realtor try to convince you that it will be difficult as it is relatively simple, especially if you are buying or selling off market for cash.

I downloaded all of the required contracts and disclosures for the state of Nebraska from an online source. It is critical that you complete all of it, including the lead based paint disclosure and any other state specific disclosures.  

There are parts of the contract that the buyer/seller will have to initial or sign. There are also parts that relate only if using an FHA loan.

Since you have purchased real estate before, you will notice it is nearly identical to the contract your realtor uses.

I took the completed contract as well as the earnest money deposit to a title company who did the majority of the work. My first time through there were a couple of small paperwork issues, but by the second time it was smooth sailing. 

Thank you @Chris Mason , definitely understand the basics regarding the contract!  

@Anthony Gayden great stuff!  I agree about not letting realtor convince me it’s difficult.  I actually work for a title company so that’s no issue for me as I review so many contracts myself.  I think a lot of my concerns are dealing with issues outside of the contract and handling the negotiation part.  Things like getting creative with the offers and dealing with counteroffers.   

I have bought 6 houses FSBO . They were all smooth and easy and fast transactions . Title company does most of the work . Two parties doing a deal . I had 1 transaction with 2 agents involved , long and slow . And worst of all the selling agent was upset that settlement was scheduled at 6 pm . She wanted it in the morning . I told her " thats too bad for you "

@Matthew Paul that’s awesome!   Nothing against realtors, but when you know you can do these transactions yourself, especially with all the resources to help you, then it’s doable.  I’ve come to understand when it comes to investors the majority of realtors don’t know how to relate.  It’s just not their main job to look out for the numbers we seek. Good point you mentioned is one or two less people to deal with when letting title company do most of the work.  I’m looking at two FSBOs right now and may pull the trigger before the weekend ends.