House- For Sale by Owner

Im currently looking to buy a house. I have a realtor who has shown my several houses.

I found a house today while looking online that is being sold by the owner.

How would buying this type of house differ? The only reason I can think a person would sell it themselves is to not have to pay a commission. So if I have a realtor, how do they get paid? Do I still use a realtor? I like my realtor, but I dont know how comfortable I would feel asking her. She is someone I will see in the future so I cant just tell her I decided not to buy a house and lie to her.

Just trying to understand the real estate world a bit.

 

I sold a house by owner. The people that bought it had a realtor and they asked for a 3% commission for him. I said no because the realtor had done nothing in the deal and I wasn't interested in paying him to do nothing for me. In the end the people really wanted the house and to be fair to him they paid the 3% out of their pocket.

 

No cut, it’s a cash deal. No Listing realtor, no MLS

 

Hey OP im in hopewell junction....i bought a for sale by owner. The relators know what to look/ ask for....I didnt use a realtor Make sure if you're on well its been tested and demand to see the water test. At the closing i adked to see the well report....was told by yhe bank and the sellers attorney if yhere was a problem you wouldnt be sble to close.....long story short the well failed and had nonpotable water....scumbag knew the well failed.. And be careful there are some superfund sites alond rt 82 and by IBM....

 

In the end all houses sell for cash, how much of it you get to keep between the fees, mortgages, and commissions is what matters. I listed the house for a certain amount and after a little bit of negotiation that's what they paid. How they paid their agent, well I didn't really care. Full disclosure, I did pay an agent to do the paperwork. There is a shit ton of it and I wanted to make sure it was done right. I think it was around $1,500, but it was some time ago. It would probably be a good idea to strike a deal with your agent to make sure everything is done right.

 

I'm looking up in Kingston area, as I'm tired of the commute, and Prices in Dutchess County are stupid high.

 

It's its a FSBO then no realtors or commission needed. As mentioned you will need someone to do the closing and realtors charge about $1k locally but it's probably cheaper here. Realtors can let you know what the house will appraise for along with any trends in the area.

Nothing wrong with that route and saving money but recommend talking to the neighbors and a good home inspector.

 

Realtors can give you a ballpark on value but if you want a ballpark that supposedly based in fact, you’d need an appraiser.

I agree with those about being up front w your realtor. Not for a commission on the house but a flat rate unrelated to what paid for it. Keep it simple.

Consider consulting w an atty or at least a title company to protect your interests.

Good Luck!

 

It’s too bad it got to the closing for you to find that out...
What a nightmare that would’ve been.

 

The only reason the realtor has to be in on this is if you've singed an exclusivity contract with them.

Otherwise you can totally do it yourself.

 

I agree that the realtor is not needed but make sure you have a good real estate attorney. That is the person who is looking after your interests.

 

You don't need a realtor, you need an escrow company to handle the documentation and transfer of funds. If you are getting a mortgage many banks and loan companies either have an escrow department or work with one on a regular basis. In the purchase or sale of property, you really want to make sure all the I's are dotted and the T's crossed.

One of the most important things an escrow company does is arrange for a title search and title insurance.