FSBO, should I get a realtor as a buyer?

Question

So here's a little background: I have the experience of 3 real estate transactions (2 purchase and 1 sale) all of which involved my primary residence. I became interested in real estate investing about a year ago and have been educating myself on the topic and waiting around for a good deal. So far I have had no luck.

Recently However I came across an FSBO which is currently priced high but I think I have a very good chance of getting a lowball offer accepted because it has been on the market for over 150 days and it has been under contract 3 times already and all fell through. It is currently under contract again but the owner told me that this one will most likely fall apart also. I am supposed to call him back next week to see how it went.

My question is, if the current contract falls through and I get a chance to place an offer should I do so without a realtor in order to get a better deal?

I am worried that I have no experience doing this and don't even know what contract to use if I don't have a realtor. I also know that they are behind on taxes so how do things like that need to be handled?

I know it's best if I have a realtor but I really don't want to lose out on a good deal because they are so hard to find. I maybe able to get the price I want if there are no realtor fees involved. I am interested to hear your thoughts. Thanks

Nathan Gesner · Answer

You can hire an attorney to protect you and just pay an hourly rate. You've got to have someone that understands the contract and the law or you could get yourself in a real bind.

People sell FSBO because they've either had a bad experience with REALTORS or they are stingy and think they can make more money without one. Just because they are trying FSBO doesn't mean they'll budge on their price.

Bob Woelfel · Answer

@Marzieh Rostami in my experience FSBO's list price is what they want to take with no agents involved. I'm not sure you'll get a better deal going at this on your own. You said it yourself that you aren't sure on a few of these things so I would suggest working with someone as it doesn't cost you anything. My next question would be why has the property fallen out of contract so many times? Are these buyers not getting financing lined up or is there something seriously wrong with the house? Might be another reason why you will want to work with an experienced agent. I don't know the price point this house is at or how much an agent will cost at 3% to cover your side, but I certainly think it's worth it to make sure your interests are protected.

Jim Cummings · Answer

In many of these situations, Buyer & Seller are both trying to save the same money, and neither one gets anything!

John Warren · Answer

@Marzieh Rostami you don't "need" a realtor, but you definitely need someone in your corner. I just double checked, and it looks like in Texas the title company (not a real estate attorney) handles closings. If you were in Illinois, I would tell you to at minimum have a good attorney (which only costs 500-700 bucks) on your team.

In your situation, I would tread lightly. You may even consider bringing a broker in and paying them a flat fee or something to represent you so you have someone in your corner. Don't go "cheap" on your team and then lose on the deal because of your lack of knowledge. You are paying agents for their knowledge, expertise and experience, not for opening a door for you!

Brian Pulaski · Answer

I agree, ask the seller. 150 days and 3-4 contracts fell apart... I'm not even sure this deal will come together. Sounds like a seller issue. Make your offer, have you realtor onboard (if the seller agrees) but offer to pay the agents fees.

Michael Noto · Answer

@Marzieh Rostami First off you will want to check with the current owner and see if they are even willing to work with a buyer that has an agent and how the commission will be paid.

Some FSBOs do not want anything to do with agents, some realize that is a good way to get a pre-qualified buyer and well worth the commission paid to the agent.

Ronald Rohde · Answer

Whats the price point? Are you paying cash? You can use the TREC form to submit an offer, but you should understand what the terms/clauses or check boxes mean.

FSBO, should I get a realtor as a buyer?

FSBO, should I get a realtor as a buyer?

Most Popular Reply

7 Replies