Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I looked at a FSBO home two nights ago. The owner is a young single guy (mid twenties) - I originally spoke with him to set-up the viewing later in the week. The home has only been FSBO for about two weeks. The next day the owner's mother (a realtor) called me and asked if I could come earlier than scheduled to view her son's house. She said her son wanted to list the property on the MLS before my scheduled visit later that week (apparently he's moving out of state). She said that if I saw the house while it was FSBO, then her son would not have to pay a commission. She said her agency has a two week "grace" period allowing no commissions so long as I saw the home before it was listed with her. I went early to look at the house and really like the property. I have access online to the local MLS and a couple days after I viewed the home, I did in fact see it on the multiple listing service. It was listed in the FSBO flyer at $185k, but on the MLS it was at $179K.
My Question: I do not have an agent and I am seeing an opportunity to get a very good deal on this home. Knowing the seller will have to pay a 6% commission off the bat to any other buyer makes me feel like I have an advantage. I also looked up online what the owner paid and I have a list of improvements and costs that he put into the property. I feel armed with information to make an offer on my own. I have bought several other homes (with realtors) in the past and am not a property "newby". However, I am not sure if going it alone is a good thing or not. Should I get a realtor, which would mean the 6% "savings" I would get going it alone would be wiped away? I know I would be up against "mommy dearest" in negotiations and she is an experienced agent. However, I am not naive and feel I can hold my own & would walk away if the deal wasn't good for me.
I need advice - realtor or no realtor? Time is ticking, as the two weeks are coming to an end. Thanks to any realtors out there that might have some sound advice!
Sounds like you have done a lot of research on your own and are pretty savvy in that regard. If you have purchased in your area/state and are familiar with the terms,conditions, contigencies, deadlines, disclosures, etc.. of the paperwork/contract then you are ahead. What about the market around the home? How are the sold comparables in the last 60-90 days?
Two things:
(1) You don't know if its a 6% commission, there is not a standard commission rate.
(2) I wonder why the price went DOWN when it was listed with a firm and entered into the MLS. You say he did improvements..do the comparables support the upgrades?
I did in fact see it on the multiple listing service. It was listed in the FSBO flyer at $185k, but on the MLS it was at $179K.
I need advice - realtor or no realtor?
Hum, Tricky! 2 different prices already. I think if you feel confident, which it does not sound like your are, go it alone. OR, perhaps hire a buyers agent for yourself at a smaller commission rate than the 6%.
Even though the home may not be listed yet with mom, son still has broker mom at his side. Not quite an even sided deal as of course mom is going to do the deal for him, listed or not.
I don't ever beleive it is a good idea to purchase a home from a fsbo without representation. Do remember if anything ends up fishy in the deal you will not have the backing of the brokerage. Often times if there is foul play on the sellers side just by telling your broker that you will list him in a lawsuit as a witness rather than a defendient will be motivation for them to help lay legal siege against the seller in your favor or at least support you in your legal process this can be a huge benefit over it being he said she said. Just remember if you do you must higher a lawyer and nothing that is not in writing will hold up in court. Protect yourself and good luck.
How funny.. I never heard of such a provision...a 10 day grace period. Specific names listed on the listing agreement that the agency wouldn't get paid a commission for, yes, but a blanket 10 day grace period? I guess it could be done, I've just never heard of it.
I don't see how the agency would be protected...how the seller could prove who went there while they were a fsbo without specific names.
But, either way, I wonder why mommy dearest didn't just tell you the price they would let it go for and strike while the iron is "hot". And, I wonder if she'll start the negotiations at the now listed price and then deduct the commission from it or start you at the pricing you were quoted? Would he still be acting as a fsbo with no representation or is mommy going to be his rep? (just thinking out loud here)
If you feel confident and armed enough, go for it. I'd go for it, but I'm an agent and would be asking her some pretty direct questions, lol.
I'm missing something. Their fsbo price is $185K and the mls price is $179k..... so if the seller doesn't have to pay a commission with a fsbo, they want the higher price of $185k??? Usually it's the other way around. If they don't have to pay a commission, the sales price is less because their saving the commission.
The difference between the FSBO price of $185,000 and the MLS price of $179,000 is a bit more than 3%.
If the mother is the listing agent, which I would suspect she is, she is probably not taking a commission.
If you go in unrepresented, the seller is breaking even. What I mean is that he is paying the equivalent of the buyers agent fee simply by lowing the price that much (if you submit an offer to purchase during that trial period you mentioned) but is getting an unrepresented buyer. Since he will be represented by an experienced agent (mom), frankly, he has the advantage. That is probably why they are offering this grace period.
The negotiations only begin with the contract. You will have other areas to negotiate and without your own representation, you may lose out and at that point, may not be able to back out (state laws will vary).
The house may have been overpriced to start with so if they sell it through the MLS after the grace period, he will have accomodated the 6% which he probably feels would be a wash and will have the exposure he needs to sell it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Never a good idea to purchase a FSBO alone
