01-20-2009, 06:51 AM
I have thought about FSBO. My Dad has done it several times in New Mexico.
I know my way around a purchase contract, but I have never dealt directly with an escrow company as their client.
I know that real estate agents here have relationships with escrow companies. If and when a contract is canceled due to a contingency, escrow fees such as title search have already been incurred. The escrow companies waive the fees due to the business they get from brokers.
Would they waive the fee for an owner? Probably only if the agreement to work with them states so. A standard contract allows for cancellation by buyer as late as the final walk through. So something to always think about in a transaction is, what happens when it goes south for some reason? Will there be costs?
Having two agents mediating between buyer and seller keeps many many contracts on track that would fall apart between buyers being scared of what inspections and disclosure reveal, and sellers nervous about financing -- or just people getting huffy and insulted while negotiating.
Then also if you list on the MLS you pay and if you don't offer 3% to a cooperating broker, no agent will bring your property to anyone's attention. Does that matter? More than you might think in this day of internet shopping.
I am an internet shopper, and have found each house I ever bought myself. I found our first house in the newspaper, before internet. But the people coming by to see my house are many of them looking at a list pulled by the agent according to their parameters. Maybe two people have found the house online.
Then there is advertising, expensive!
So I figured the best I could do was 4% over 6% (unless I shut out cooperating brokers), and the 2% wasn't worth losing all the networking, advertising, and SERVICE provided.
That's why I decided not to go FSBO, despite being fairly capable, although definitely less capable and experienced than the agents who are handling my property.
Anyone who does FSBO had better keep a really sharp eye on the contingencies and requirements of the timeline, or you can end up in a big legal mess.
I know my way around a purchase contract, but I have never dealt directly with an escrow company as their client.
I know that real estate agents here have relationships with escrow companies. If and when a contract is canceled due to a contingency, escrow fees such as title search have already been incurred. The escrow companies waive the fees due to the business they get from brokers.
Would they waive the fee for an owner? Probably only if the agreement to work with them states so. A standard contract allows for cancellation by buyer as late as the final walk through. So something to always think about in a transaction is, what happens when it goes south for some reason? Will there be costs?
Having two agents mediating between buyer and seller keeps many many contracts on track that would fall apart between buyers being scared of what inspections and disclosure reveal, and sellers nervous about financing -- or just people getting huffy and insulted while negotiating.
Then also if you list on the MLS you pay and if you don't offer 3% to a cooperating broker, no agent will bring your property to anyone's attention. Does that matter? More than you might think in this day of internet shopping.
I am an internet shopper, and have found each house I ever bought myself. I found our first house in the newspaper, before internet. But the people coming by to see my house are many of them looking at a list pulled by the agent according to their parameters. Maybe two people have found the house online.
Then there is advertising, expensive!
So I figured the best I could do was 4% over 6% (unless I shut out cooperating brokers), and the 2% wasn't worth losing all the networking, advertising, and SERVICE provided.
That's why I decided not to go FSBO, despite being fairly capable, although definitely less capable and experienced than the agents who are handling my property.
Anyone who does FSBO had better keep a really sharp eye on the contingencies and requirements of the timeline, or you can end up in a big legal mess.