Real Estate Question

[FarmboyBill]

If, in driving around, I would happen to spot a place for sale by owner, Should I notify my REA about it?? My sister in law works for a title abstract Co, and knows a lot about real estate, and what she don't know she has other people who do other aspects of the business than she does, AND she also has a few friends who are REAs who she can talk to for any things she dosent already know?

[agmantoo]

Most FISBO "For Sale By Owner" transactions are means to circumvent the commission or to lower the price of the transaction to both the buyer and seller. Normally I do not need an intermediary to do my business. I would contact the seller personally!

[Yvonne's hubby]

Originally Posted by FarmboyBill

If, in driving around, I would happen to spot a place for sale by owner, Should I notify my REA about it?? My sister in law works for a title abstract Co, and knows a lot about real estate, and what she don't know she has other people who do other aspects of the business than she does, AND she also has a few friends who are REAs who she can talk to for any things she dosent already know?

I once had a sisterinlaw who was a nurse.... I still went to the pro's when I needed surgery.... somehow the "savings" I could have had by doing it myself just didnt appeal to me.

[Callieslamb]

I'd go talk to the people that are selling the property. There's a reason they are not working with a realtor. If you call your REA, they will just call them to see if they will do a temporary listing....and you'll pay more for the property.

[RichNC]

FBB, you call the number on the sign and ask them questions you may have regarding acreage, how much they are asking and such, if it sounds good then you ask them to set up a time for you to come see the place.

[FarmboyBill]

Rich, thats what im thinking

[RichNC]

Originally Posted by FarmboyBill

Rich, thats what im thinking

That is actually how it works, that is why they put a for sale by owner sign in their yard, otherwise if they were selling it there would be some type of relator sign in their yard, so you drive by thinks to yourself that looks like a nice little place, write down the number and call them, believe me I have bought a few houses in my day and that is how FSBO works.

[Declan]

Originally Posted by FarmboyBill

If, in driving around, I would happen to spot a place for sale by owner, Should I notify my REA about it?? My sister in law works for a title abstract Co, and knows a lot about real estate, and what she don't know she has other people who do other aspects of the business than she does, AND she also has a few friends who are REAs who she can talk to for any things she dosent already know?

Since you refer them as your REA, it might depend on what your contract, if any, with them says as to whether or not they have to be involved. If not, then have at it (but get an inspection or make sure inspection/acceptable appraisal/loan approval are in your contract as contingencies to get any deposit back.

[Chucknbob]

Yes you can. Your REA represent you, that's what you pay the 3% commission for. Just because you use a realtor doesn't mean they have to.

[FarmboyBill]

I don't have a contract, and I havnt paid any commission

[ChristieAcres]

Originally Posted by FarmboyBill

If, in driving around, I would happen to spot a place for sale by owner, Should I notify my REA about it?? My sister in law works for a title abstract Co, and knows a lot about real estate, and what she don't know she has other people who do other aspects of the business than she does, AND she also has a few friends who are REAs who she can talk to for any things she dosent already know?

I highly recommend you ask your REA to contact the FSBO, if you spot one, to schedule a showing. Most are savvy and are only trying to get out of paying a full commission (for 2 REA's). For bringing a Buyer, most FSBO's are willing and already prepared to pay the Selling Agent a commission.

[DAVID In Wisconsin]

Originally Posted by FarmboyBill

I don't have a contract, and I havnt paid any commission

Then no sense in getting a realtor involved for a FSBO and having to pay extra.

[FarmboyBill]

Its hard to imagine that, I find a place, I talk to the owners as to the particulars, and then I ask them IF they would be willing to pay for my REA, they saying yes.

[billinwv]

When I work with a realtor I like and trust I stick with them. On most purchases I have made, the realtor has spent at least 40 hours of their time with or for me. I would ask my realtor to act as buyers broker and offer the seller a showing for a minimal fee, say 1%. I wouldn't burn a bridge, may need that agency for selling or buying in the future.

[Alice In TX/MO]

Absolutely talk to them.

Use a title company. They can do it all.

[ChristieAcres]

Originally Posted by DAVID In Wisconsin

Then no sense in getting a realtor involved for a FSBO and having to pay extra.

Most FSBO's expect to pay the REA fee, so the Buyer isn't paying extra. It is very rate for a FSBO to refuse to pay the fee. In fact, in all ten years I have been in real estate, I have never come across a FSBO who would refuse to pay a fee in order for the REO to bring them a Buyer.

This does come up from time to time and even had rather an amazing thing happen to me twice (didn't involve a FSBO, but still on the top of commission). I found two different unrelated couples properties. One couple bought two adjoining parcels and the other a $400k home. Each of these Buyer's contacted me afterward and asked how much they owed me for my services (I had already been paid out of Seller Net Proceeds). Neither of them realized the Sellers had Contracts with their Listing Agents, which included paying the REO's commissions out of Seller Net Proceeds.

On FSBO's? I will show them, but always inquire if the Seller is willing to pay my fee. If not, I inform the Buyer (I would never charge a Buyer). If a Seller wouldn't pay my commission, I would show the home. Most Buyers utilizing REO's, have educated reasons for doing so. Those who don't, have their own reasons.

[ChristieAcres]

Originally Posted by billinwv

When I work with a realtor I like and trust I stick with them. On most purchases I have made, the realtor has spent at least 40 hours of their time with or for me. I would ask my realtor to act as buyers broker and offer the seller a showing for a minimal fee, say 1%. I wouldn't burn a bridge, may need that agency for selling or buying in the future.

I appreciate your point- time! REA's are not paid to spend many hours of time with their Buyer's, unless there is a Closing. This is precisely the reason Buyers Agency Contracts are often used (REA's are guaranteed to be compensated should the Buyers purchase a FSBO without representation).

In most cases, FSBO's are willing to pay a standard Selling Agent fee (typically 50% of the Listing Contract Fee).

[Sawmill Jim]

Some for sell by owners may be like me . Should I price one of my properties for $10,000 you bring me ernest money pending delivery of deed then I want the rest no jawing around ,simple and easy .

[treefrog]

whenever i deal with real estate, i negotiate the deal myself, then get an attorney to handle the paperwork in the proper professional manner.
my attorney is familiar with real estate law in this state, and he charges by the hour. a real estate agent charges a percentage of the transaction. usually something like five percent (or up!).
if, for instance, i am buying a parcel worth $100,000 my attorney will check out the title, arrange title insurance, and charge me something like $500. a real estate agent would want 5% which would be $5,000. that's a ten-fold difference!
if it were a $10,000 deal, it would be a break even situation. you don't get much for $10,000 these days.

[billinwv]

Treefrog, You are paying for services related to closing. The Money a seller spends on an agent is for marketing the property, showing it, helping with pricing etc. It is very hard for a FSBO to reach the number of people an agent can imo. I even think the top internet advertising sites are limited to licensed agents. A 10,000 dollar sale would still include lawyer fees and agent fees if listed. Agent fees don't include closing costs.