Buying property without a realtor

[topograph]

So made an offer on the lot next to ours in Fern Acres and its looking like they will accept it. Any advice out there on finalizing the paperwork?

[oink]

I assume this is a FSBO. Get title insurance, allow an inspection time, you may want to get a survey (expensive) and close it in the title office, get and use a copy of the Hawaii Realtor's or a BAR contract. Consider offering a Realtor a one time fee to complete the contract. It is not necessary to use a Realtor to complete a real estate contract, especially for those that have considerable experience buying and selling real estate. Your question indicates you are not one of those people. Be very careful.

Pua`a
S. FL
Big Islander to be.

[Carey]

Also..check with the tax office, make sure taxes have been paid by the seller (not just paid, but by the seller of the property...it can get a little more complicated if someone else has been paying) & if there are any association fees, electric pole fees & such, that all fees have been paid by the seller, or noted in the sale (ie, if there are things like the pole fees outstanding, note it on the contract...)

[topograph]

Kind of FSBO, except that it wasn't for sale. We contacted the owners through their tax bill address, and got a favorable response. Not going to have a survey done prior as we have already located the property pins, and both this lot and the one next to it are undeveloped so no concerns about improvements within the setback. No electric pole on site, and taxes are paid and up to date.

We plan on going through a title company for title insurance, escrow and recording the transaction. Thanks for the tip on checking on who paid the taxes- will go research that.

[rainshadow]

This is exactly how we bought; very clean, inexpensive and legal. Good move, keeping the realtors out of it, if you can. They're vultures around here.

-- rainshadow

[nana valley]

yep, sold my mainland home using title company. Very easy and inexpensive. Nice thing was the buyer and I bartered back and forth and both came out happy. Kinda fun!

He who hoots with owls at night cannot soar with the eagles in the morning.

[terracore]

The first house I bought (in another state) was FSBO and we didn't have any problems. BUT...real estate transactions in Hawaii are like nowhere else. If it were me I would probably contact a trusted realtor and explain where you are at in the transaction and ask if they will assist you for a small reasonable fee. No commission. It's not like they are doing their primary job. Title company here in Hawaii "forgot" to pay the property tax collected from the seller on our last Hawaii transaction. I don't have a lot of faith in them. But I am not completely without faith in them. Sort of an agnostic sort of thing. Anyways, the point is don't count on the title company to protect you- even though its why they exist.

[Seeb]

not sure but i think real estate agents have to collect 6% buy law. there was something about a FSBO site that would do the paperwork- title, deed,etc for 1%. but the hawaii board of Realtors shut them down

other parts of the country just having a lawyer do the paperwork is common

I also think that the realtors getting 6% every time property changed hands was one of the reasons for the collapse

[terracore]

quote:

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Originally posted by Seeb

not sure but i think real estate agents have to collect 6% buy law. there was something about a FSBO site that would do the paperwork- title, deed,etc for 1%. but the hawaii board of Realtors shut them down

other parts of the country just having a lawyer do the paperwork is common

I also think that the realtors getting 6% every time property changed hands was one of the reasons for the collapse

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"Going rate" for land only (no house) is 10%. But in my example the realtor is being hired as a consultant, not a realtor.

[big_island_bound]

Brokers can set the % of commission they charge. I've seen up to 10% for land and down to 4% for residential properties. It depends on what the listing agent and/or broker is willing to work for. As for a FSBO, it would have been better to have an agent on your side that knows the law and the particulars when it comes to finalizing the contract and following through with the contract. All an agent has to do is tell the seller he has a buyer, but can't sell his home unless he/she agrees to a one time showing/listing agreement. FSBOs limit the buying pool by not listing because a Realtor doesn't/wont show a FSBO without a written agreement. Buyer gets representation free of charge because the seller pays the commission...seller gets to sell property. Both win.