05-14-2019, 12:34 PM
"My understanding is if you have a buyer and seller agreeable on a deal, you can sometimes go directly to a title company and get them to do all the paperwork at reasonable cost. (The title search to ensure that the title is clear is very important.)"
The first house we bought was a FSBO and neither side had a realtor. Like somebody else said the title company actually does all the work. The seller sold the house to us under market rate because she wasn't paying a commission.
Now if the seller has a realtor, they can't enter into a private sale agreement for X amount of months after the realtor relationship has expired. I believe the X was 6 months when we had a realtor. I don't know the rules for buyer's realtors.
I knew another guy, seller, and the buyers couldn't come up with enough money to buy his house. To make the deal both realtors agreed to lower their commissions and add it to the buyer's offer. Of course they both refused when he first suggested it, but when it was clear he was absolutely going to walk away from the deal they changed their tune. They had already invested time into it and he was willing to take his house off the market meaning NOBODY would see a return on their time investment unless they made the intelligent choice.
Okay, last one for this post: I know another guy, a self-made millionaire, and when he buys a house he writes the offers such that his earnest money is essentially 100% refunded regardless of what happens. Then he makes an offer on two homes he's willing to buy. This usually involves three separate realtors. This forces the sellers into bidding wars against each other and immediately drives them down to whatever lowest offer they are willing to accept. It's less effective in a strong seller's market but in a neutral or buyer's market it gets him the best deal. If one is available he likes to choose a builder's property as one of the houses, because the other seller knows they are competing against somebody selling a brand new home with a warranty, and the builder already knows what their break-even point is and can offer their lowest price without any emotion.
The first house we bought was a FSBO and neither side had a realtor. Like somebody else said the title company actually does all the work. The seller sold the house to us under market rate because she wasn't paying a commission.
Now if the seller has a realtor, they can't enter into a private sale agreement for X amount of months after the realtor relationship has expired. I believe the X was 6 months when we had a realtor. I don't know the rules for buyer's realtors.
I knew another guy, seller, and the buyers couldn't come up with enough money to buy his house. To make the deal both realtors agreed to lower their commissions and add it to the buyer's offer. Of course they both refused when he first suggested it, but when it was clear he was absolutely going to walk away from the deal they changed their tune. They had already invested time into it and he was willing to take his house off the market meaning NOBODY would see a return on their time investment unless they made the intelligent choice.
Okay, last one for this post: I know another guy, a self-made millionaire, and when he buys a house he writes the offers such that his earnest money is essentially 100% refunded regardless of what happens. Then he makes an offer on two homes he's willing to buy. This usually involves three separate realtors. This forces the sellers into bidding wars against each other and immediately drives them down to whatever lowest offer they are willing to accept. It's less effective in a strong seller's market but in a neutral or buyer's market it gets him the best deal. If one is available he likes to choose a builder's property as one of the houses, because the other seller knows they are competing against somebody selling a brand new home with a warranty, and the builder already knows what their break-even point is and can offer their lowest price without any emotion.