Oregon Purchase and Sales Agreement

17 Replies

Hello team -
I'm going to be listing my personal house up for sale by owner and was looking for a PSA to utilize. Wanted to see if anyone here had one? Or knew of where to get one?  Looking to sell then split the funds to another personal home and then the balance for a few investment properties.

thanks!

Gohar, Are you planning on offering a commission to a buyer's agent? I would recommend that because it broadens your pool of buyers. Also if you do that, the buyer's agent will write up the offer on a PSA and deliver to you. As a seller you don't need a PSA the buyer brings that to you. Let me know if you have any questions.

@Darren McGillvrey

I appreciate the insight here! I did not think of that, rather thought I may get a buyer with no representation in which case I could go the lawyer route or find an agent who would be willing to transact for a fee.

Yes, I do plan to give commission to buyer's agent....will negotiate that as part of each offer.

Am in a strong location and homes have still sold less than 7 days in my neighborhood where they are priced fairly. I plan to do the same....fair price and just save on the listing commission. End up with a $10k to $15k in savings.

Glad to help! I understand why you want to do it, I'm interested to see how the interest in your place could be effected by being a FSBO in market with the COVID concerns. Hopefully not but in your marketing you may want to address it somehow. Also, just remember to disclose, disclose, disclose. Limit your liability.

quick update:  first 24hours, I got tons and tons of buzz.... unfortunately, it was all realtors trying to list the property and offer a discounted commission of 6%!! Some even wanted to "preview" the site in present covid19 conditions.  After I provided candid feedback, they "got another appt" and will find another time. crickets.

Also, lesson learned, should have put in my zillow posting:  "Will pay Buyer's Agent Commission".  Will do this when i update my pricing.  

191 views with 6 saves according to Zillow....pretty good. 

Originally posted by @Gohar Shafiq :

@Darren McGillvrey

I appreciate the insight here! I did not think of that, rather thought I may get a buyer with no representation in which case I could go the lawyer route or find an agent who would be willing to transact for a fee.

Yes, I do plan to give commission to buyer's agent....will negotiate that as part of each offer.

Am in a strong location and homes have still sold less than 7 days in my neighborhood where they are priced fairly. I plan to do the same....fair price and just save on the listing commission. End up with a $10k to $15k in savings.

If your paying a broker for bringing a buyer they will write the contract on the MLS form.. simple

if you sell it yourself just go to the Staples there is a section there that have Stevens Ness forms and get a purchase and sale agreement. cost you a few dollars maybe 5 or so.

 

@Jay Hinrichs

Thanks for this helpful information! I was also thinking to go through one of those sites for "list on MLS" for $150+ but this is a better strategy.

I may actually go ahead and get the PSA review.

Will also advertise, 1 Yr. Home Warranty, Closing Costs ($5k), and Inspection paid for by Seller if closed to entice first time buyer as they will have almost zero out of pocket except for down payment and a bit of escrow. As an a strategy as well. Especially, if no buyers agent.

Hi folks, sorry - meant to provide an update.

After the home was listed on the MLS via a flat fee service, it became active on Monday @ Noon'ish and the home went under contract/pending on Friday.

Home sold for List Price. w/ $500 towards minor repairs, 1yr home warranty, and 2.5% buyer commission.  Home closed less than 30-days.


As expected, buyer agent created all forms and easy to execute via docusign.


appreciate everyone's support and guidance. 

Now, I'll be closing on my new primary home by end of year and hope to get a minimum of 4 to 10 renal doors in 2021.

@Steve Morris I priced it right and was the second highest for the floor plan ever sold. After I sold, a few homes sold for a few thousand less but most recently, one sold for $1,500 more. My list/sale price was same as those by other realtors trying to get me to list with them.

Am very happy with the results and not having folks coming/going during the less known covid state.

I probably could have done a direct sale without an agent had these been normal times bc I would have done open houses. But all in all, quick and easy transaction.

Just curious, I do comm RE.  

However, I keep hearing the ads by enterprising resi brokers: "We got multiple offers at $1000s more than asking".  So, I'd ask them, why not list it higher?

@Steve Morris Yep, I think they list the homes at fair market and then let the competition drive up the cost of the home.

A buddy sold his place for $25k above the asking of $399k, and the offer he accepted was the one with funds to cover the gap between appraisal value and transaction price.

I think, my opinion only, the market is high and folks will come out okay if they stay in the homes 5 to 10yrs. Anyone trying to resell, will be challenged to break even after the real estate fees.

Also, many homes we looked at buying sold at list or above....if they went with 1 wk. After that 1 wk window, usually you see a price drop or transaction prices at or below list price.

Of course, we don't have info on concessions that may have been made.

@Steve Morris - @Gohar Shafiq is correct. If you list it too high it will sit and most likely it will sell for even less than the "fair market" price you probably should have listed it for. I was just talking about this to another experienced agent yesterday. We both have listings where that happened. Your most serious buyers are usually within the first 2 weeks, if you miss it with them then you are looking at price reductions.

"If you list it too high it will sit and most likely it will sell for even less"

Then why not list it lower?  I'm just saying that realtors that humble-brag about selling more than list don't have it priced right.

@Steve Morris I completely disagree with that statement. Agents are or should be listing the property at the value based on comps and what other plus or minus the listing property may bring. A seller has the option to offer below, at or above list price. The list price is simply the agents expert opinion on what the home may sell for and a price a seller would typically accept.

A seller will always accept more money given everything else is equal. Or other concessions such as rent back, cash offer, no inspection contingency, etc.

I'd like to better understand why you have the opinion you do. Perhaps there is something I am overlooking and not capturing in our communication.

One reason or thing to add is that homes are selling, or some are higher than list because of supply demand. 2 buyers, 1 house.....drives competition, drives value/prices higher.

I'd like to better understand why you have the opinion you do. Perhaps there is something I am overlooking and not capturing in our communication.

Just being nit-picky with advertising by some realtors.  If they can get the seller the max for their property at the end of the day - Bless them, that's our job.

However, when they spend the entire ad saying they always get more than list price, I'm not getting it.  Why not just list for more since the market is supporting it?

Well said @Gohar Shafiq

@Steve Morris Must be different in the commercial space? Have you never listed a building for sale and received more than your list price? Or listed one and ended up doing a reduction? If neither one of those things has happened you need to write a book. 

If you price it too high you could lose your best buyers who usually come through in the first week in this market. There's also sometimes some strategy involved (and risk) pricing it lower than what you think market value is and creating a bidding war, driving the price up beyond that market value price. There's also occasions where agents will have to list high because either they are dealing with a stubborn seller who thinks he knows best or they can't convince someone why they need to list lower. Actually, there's so many factors and pricing can have so many variables that pricing a home right is a valuable skill in an agent. 

As for agents telling everyone about it, it's simple marketing. Brag about what you did, even if it's something many others are doing. The consumer doesn't always know that. That goes for product or service. Besides saying "I sell for list price." Isn't very sexy, haha.