WatchLong time listener first time caller. This is my first post and I am looking for seasoned advice from people who have purchased FSBOs without a buyers agent.
I have studied my local market for many years and have just found a poorly advertised FSBO house that has been sitting on the market for several months. It is not quite at rental parity, but it is listed at a price corresponding to roughly 2002 price levels, 690K for a 4BR in an upscale florida neighborhood where 2007 bubble prices were near 1 million.
In a declining market with time and patience on my side, I want to make an aggressive offer....but one that will not piss off the owner. (Through due diligence I've discovered the house is paid off and owner is not desperate and could easily decide to rent the house and make a decent return on his locked up capital.)
My offer contract will be accompanied by a packet with recent comps, active sales, and county appraisals that could justify an offer price of 620K.
Does anyone have experience or advice as to what else to include in something like this? Should I mention in the packet that he will save 3% on me since I do not have an agent? Can anybody who has made a man to man offer instead of waiting to hear from two middlemen agents share their experience and go over mundane technical details about how they did it or what went wrong if they were unsuccessful?
Thanks for sharing!
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San Leandro, CA
Real Estate Professionals provide access to inventory and more information about the products that you may be interested in.
If you do not need any of those services, Why would you pay them ?
Did they make you believe that you must use an agent ?
By the way, Why are we paying 25% of our income to gubmint ?
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This guy, seller is the one who will want to save "your" 3%. Its the seller who pays ALL commission. Since he doesn't have to pay it out, he'll be the one who will want that benefit for himself.
TMAC, you hit the nail on the head. Lib's complain about a 6% realtor fee but are OK with a tax burden of 38% (28 to Fed, 10 to State). What is that, brain damage?
Government, worthless but expensive - priceless!
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ThisGuy says
FSBO's are generally (but not always) a waste of time. Owners selling on their own often are disconnected from reality and overly emotional about their property. Since you say he is 70K over market, this may be the case.
I would simply talk to him first and see if this seems to be the case before preparing a offer package complete with comps.
Honest Abe says
The government has nothing to do with this, my advice is to ignore this person.
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Nomo, if you were transfered and decided to purchase a house, would you use a realtor or buy direct?