Buying a FSBO property

[youngbob]

We are planning to purchase a home within the next month. I had a friend recommend an agent to act on my behalf (buyer's agent). Prior to talking to her, we had really already decided on a specific neighborhood with both new construction and existing homes for sale. I spoke to the recommended agent and we talked in general terms about her role. She never mentioned signing an agreement nor did we discuss her fee. Several days later we found out that this agent was about to retire and spends at least half of her time at the beach (must be nice!). Well, she hasn't found anything that we hadn't already seen and she hasn't really been available when we need her - we are working around her schedule. She has shown us 1 house that we actually found and set up the showing.

The problem is that house is one that we are interested in and it is FSBO. The owner is ok working with an agent but I don't want to use this agent. I called her today to set up a time to work on the offer and she was on the way to the beach for a week - again! This means that I have to wait and possibly lose the house or do it myself or with another agent.

I understand the value of working with a buyer's agent but I don't see the value if I am doing all of the work.

Since I am ready to offer on this property:
Should I do it myself with a real estate attorney helping with the contract
Should I use another agent -- have to find one immediately
Should I use the current agent -- don't know why I would??
Any other ideas

[traceykusa]

Your best bet is to contact a real estate attorney if your ready to make an offer. They can provide you a solution for writing a sales agreement and making sure that all of the I's are dotted and T's are crossed to get you to the next step which is the closing. Just remember that you will probably need a home inspection and also a wood destroying organisim report (WDO) as well. Usually between your mortgage broker and the real estate attorney you can get it done.

Tracey
Jacksonville Real Estate

[kensmith]

"Should I use another agent -- have to find one immediately"

This is the option that I would go with, but a little twist. Contact the agent that has already shown you the home and ask her to refer you to an agent in her office as you are not happy working around her schedule. At that she might have someone that covers her business while she isn't around.

This will save you any potential issues down the road of the fact taht the agent did show you the home, then you turned around and bought it without the agent. Many court cases have gone against buyers when they do this and you MIGHT (small chance but why risk it) end up owing a commision out of your pocket.

Tell the agent that you want an agent that has at least 20 or so transactions completed and one that normally works with buyers in the area you are looking at. The agent will be worth every penny the seller is going to pay them when it comes down to the negotiations and knowing what to do step by step.

If you try and do it yourself make sure to talk it over with your attorney to see if you have a chance of getting into a lawsuite over the commision. Get the opinion in writing from the attorney along with any steps they recommend you take.

Best of luck, hope you get the house!

[youngbob]

Thanks for the responses.


Although I understand what you are saying, I guess I would risk it because:

- This agent has done nothing, I have done all of the work. I even scheduled the showing - she just met us over there and that is the only house she has shown us. We have looked at many without her while she is at the beach.

- She is never available when we need her.

- She never discussed her fee at any time during our conversations yet she made sure the seller was ok paying 3% when she talked to him. Well, I am the one that would be paying the 3% in a FSBO. She should have discussed her fee with me upfront and at the very least before discussing with the seller.

- I don't think it's right for me to pay 3% and get nothing in return just to be safe.

- When I asked her about her fee she said it's 3% but she doesn't get all of it. Some goes to the person referring me to her, some goes to her broker, etc. I don't really care where the money goes --- tell me what I am getting for my 3%!

And if she can still sue and win after the above and when I haven't signed anything or even been shown any kind of agreement, I guess I will have to deal with it.

Enough of my rant. I have decided to use a real estate attorney to handle the transaction.

Thanks again for the feedback.

[Derrick Jeffery]

I am trying to find out what mortgage company owns my old house. Also if anyone knows of a FREE forclosure website, the ones that I have gone to only give you basic info then you have to join.....thanks

[AZAgent2]

This is kind of old "but" I think the right thing to do here would be to talk to the broker of the company and have them refer a better agent to your transactions for a number of reasons:

If properly done your old agent would (should of) had the FSBO sign an agreement stating they would be paid (3% in this case) if you purchased their home. Since that agreement is with that brokerage "if" you choose to use another agent and dump your old one (regardless of work committed) it very well could end like this: the FSBO ends up paying your old agent/ their brokerage the 3% for procuring you as the buyer to their home and you personally paying your "new agent" that actually represented you throughout the rest of the transaction. That's for starters.

Second I do believe the real estate attorney is a “decent” second opinion BUT there’s a lot of stuff they won’t be able to really give you good advice on (this is my personal opinion here): Real estate attorneys absolutely can draw up real estate contracts and all that but the majority of their work revolves around (At least in Tucson AZ) real estate litigation (court) not sales meaning this. The real estate attorney will not be able to (again in my opinion) give you sound advice as far as what items in this current market buyer’s should be able to negotiate for, or how much below list you should start the negotiations at and how to work up from there. It’s really part skill, experience, and art when negotiating with a seller as a buyer’s rep. NOW having said that from what you explain your old agent more then likely doesn’t have a clue about any of that anyway so that’s a moot point. In fact only the really good experienced (in my experiences) agents have the skill and tact that truly easily pays all their commissions and then some due to their unique and sophisticated negotiation abilities and the guidance they give you as a buyer when handling your negotiations is when properly done worth a lot. Anyway enough said unfortunately your story is very common, a lot of agents have NO CLUE how to service a client and that’s why 50% of them are out of the business in less then a year and 95% are out of the business in less then 5 years.