Help!!! I am buying a home for Sale by Owner.

Help!!! I am buying a home for Sale by Owner.

Farmington, MI · Member since 2018 · 5 posts · 1 vote

I am buying a single family home in Oakland County Michigan as a FSBO. I don't have a buyer's agent representing me. The owner is presented by a family-member that is a broker.

I did my own comparable market analysis and feel comfortable with the price and the terms. It is a cash deal but only 1% EMD (name on check to the seller's broker) and they are allowing an inspection period

However, someone mentioned that I should not use a title company that the owner selected; that didn’t make any sense to me.

Please advise if there are any potentials scams or anything else that I should lookout for. Again, the purchase price is not above market and we like the home.
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Investor · CT · Member since 2017 · 165 posts · 75 votes
8y

I would use your own title company, it's good to bring your own assembled team to the table @Jenny Stallings

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  • Investor · CT · Member since 2017 · 165 posts · 75 votes
    8y

    I would use your own title company, it's good to bring your own assembled team to the table @Jenny Stallings

  • Farmington, MI · Member since 2018 · 5 posts · 1 vote
    8y

    @Mario B. Thank you for your response. I will make sure that we are able to choose our own title company. 

  • Investor · CT · Member since 2017 · 165 posts · 75 votes
    8y

    @Jenny Stallings Check out these informative links:

    https://rehabfinancial.com/blog/why-you-shouldnt-u...

    https://www.biggerpockets.com/forums/67/topics/81818-benefit-of-using-own-title-company-vs-sellers-title-company-fannie-mae-hud-etc  

  • Farmington, MI · Member since 2018 · 5 posts · 1 vote
    8y

    @Mario B. Thank you for the links above. It is all making sense now.

  • Specialist · Ann Arbor, MI · Member since 2017 · 74 posts · 22 votes
    8y

    @Jenny Stallings

    There is a lot of great information in this thread. 

    The bottom line is most title companies are interchangeable. Some are great, while other are less then great. Even under RESPA if the seller is paying for title insurance for both the buyer and the lender, they can dictate the title company. A split closing is always a possibility, but could end up costing you more.

    One last note. I would be remiss if I didn't mention, Only around 45% of FSBOs that go under contract actually close for a wide variety of reasons. So Don't get too attached to any 1 house. 

    Feel free to PM or email me.

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