Buying A FSBO Walkthrough?

[Adam Godfrey]

Hello Everyone,

I have found a property near Indianapolis that is listed for sale by owner. I am debating on using a realtor on my end to aid with the purchase of the property but was wondering what the process was if I were to purchase without one.

Could anyone provide a step by step guide from finding and contacting the seller to walking away with keys in hand without a realtors assistance? I have picked up so many snippets of steps and could really benefit from having it all laid out in front of me.

Thanks for your time,

Adam

[Mike Cumbie]

Hi Adam.

I oversaw 196 transactions last year from our brokerage. If I wrote a "step by step guide" that covered everything for each I would most likely have about 60-70 different guides. Each lender has different requirements, is an 18 inch adjustment on a boundryline fence acceptable or is 24 inches this banks acceptable. Who can inspect septic tanks in this county? Does this county accept a 40 year abstract or do they require a 60? Is a licensed electrician putting in the GFCI outlets or is everyone good with a handyman? Does the survey need to be staked within this village or is an update acceptable? Is a sidewalk survey required on this 30 acre piece of farmland? How much is being paid for post possession? When was the oil tank removed? Is the roof warranty transferrable and what requirements does that company have to do that? Who is paying for testing the water for potability and flow? Are the figured taxes on the FSBO true taxes or with their 4 exemptions (potentionally thousands a year).

I know its a common thought that agents just open doors and cash checks, but 80% fail in the first year. I would guess its because they dont realize what is actually involved in the process and find out the hardway that they just worked on a deal and made $2.42 an hour. Or they realize they just cost their client $25,000 because the beautiful polebarn never had a permit. Building inspector flags it 2 weeks after sale and requires it taken down.

In the simplest of forms, write on a piece of paper "I Fred Smith will buy 123 Main street for $200,000". Both sign, put down some form of deposit. Do your DD. Give to title company and meet at closing with certified funds to get keys.