How to Go to Settlement Without Any Agents

Question

Hello BP! I am working towards closing on a property to house hack in. I found the seller on Craigslist and they do not have a listing agent (I.e. it’s an FSBO). I have never bought or sold a home before and so it’s not quite clear to me what documents I will need to get together for closing. Does anyone have any guidance on this or advice on how to close with an unrepresented seller?

Steve Morris · Answer

Hire an RE atty.  If you haven't done it prior then it's worth it.  Understand everything the atty does.  His fee = tuition.

Gary Lucido · Answer

A lot depends on whether or not you will still be looking for another property after this one closes. The reason? Your agent was spending time with you expecting to get paid at some point in time. If you are going to buy another property soon then no problem. You can continue to work with that agent. However, if this closing means you are done for a while then you really should bring in your agent and pay them their normal commission. It varies by area but it's probably 2.5 - 3%. The fact that you found the property doesn't mean much in the grand scheme of things. That's maybe...what? 5-10% of the job?

Sean McDonnell · Answer

I would ask the seller if he is willing to pay a buyer agent commission. I have done many deals for buyer clients where the seller is doing a FSBO but still agrees to pay me a commission. Then you would have professional representation. If the seller is not willing to do that, you can still hire a buyers agent and pay their commission. If you are not willing to do that, then find a good attorney. If this is your first ever real estate transaction, I would recommend getting an agent to represent you.

Steve Morris · Answer

"I found the seller on Craigslist"

Not a very good broker, no great loss if he finds a better one.

I'm a broker, so I'd be pi$$ed, but if I'm not doing a good job, I'd better learn fast.

Joseph ODonovan · Answer

@Colin Jones Your first deal? I strongly recommend you hire a RE Agent or an attorney.  A Craigslist seller would make me more apt to recommend you be represented by someone. Too many things can go sideways in a real estate transaction.

Elise Bickel Tauber · Answer

I own a real estate brokerage so I'm biased a bit. Agents are valuable to the transaction. However, I wholeheartedly believe that you can complete your transaction with just a closing company. If you have a good closing company they can help make sure everything that is needed for both sides is completed properly. They won't give negotiation, etc advice but they will make sure the seller completes are necessary dye tests/occupancies/etc.

Best of luck!

Dennis Cosgrave · Answer

Gary Lucido, I totally disagree with you. Finding the deal is at least 50% of the value of the commission. Negotiating the deal is another 30%. The rest can be done by any title company or RE attorney.

Ron H. · Answer

RE Attorney is your best option for your 1st property.  Although not needed you could probably find an agent to walk you through the transaction for a fixed fee of a few hundred or an hourly rate.  No reason for anyone to pay a re commission just for consulting on how to close.  They did not make the deal happen.

Colin Jones · Answer

Thank you both very much, that was very insightful! I have been working with a buyers agent and looking at homes with her but I happen to find this home on my own. I don’t want to offend her by pursuing this transaction without her, how much would a buyers agent commission be? I am in the Philadelphia, PA region. Also my father has a RE Attorney he trusts so if I don’t pursue the deal with my agent, I will reach out to him.

How to Go to Settlement Without Any Agents

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