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For Sale By Owner? what questions should i ask?

  • Thread starter Thread starter Lola
  • Start date Start date
L

Lola

Ok, we have been working with a realtor to find a house, but we came upon one that was for sale by owner, so tonight we are going to look at it sans realtor.

My question is: are there any certain questions that we should specifically ask? I have a ususal list, but since its FSBO, are there any ones in particular that need to be addressed?
 
i've heard that if u already signed with a realtor...even if u later went and found your own house, u still gotta pay his/her fees.
 
make sure to ask if there are any leins on the property, right of ways (i.e. is there an alley assigned to what looks like the backyard)
of course, age of furnace/HVAC, water heater, roof, plumbing and electrical (if it's an older house)
any leaks in the basement?

buying FSBO is easy, just talk to a real estate lawyer..it cost me $75 when I bought my house last fall
 
What makes you think you need an agent anyway? Dragging one along to every house you look at, just hurts your negotiating leverage by about 3.5%. Ask the same questions you'd ask if your boat anchor of an agent was with you!
 
Originally posted by: slycat
i've heard that if u already signed with a realtor...even if u later went and found your own house, u still gotta pay his/her fees.
Click to expand...

Wrong. The buyer doesn't pay the realtor fees. The seller does.
 
Originally posted by: Ornery
What makes you think you need an agent anyway? Dragging one along to every house you look at, just hurts your negotiating leverage by about 3.5%. Ask the same questions you'd ask if your boat anchor of an agent was with you!
Click to expand...

How are you going to look at homes without a realtor? Planning on limiting yourself to FSBO homes?

Your advice is completely wrong.
 
Make sure to check this listing against other comparable listings. I'll bet even money the FSBO listing is overpriced by 10%. FSBO should stand for "not enough equity to pay the realtor" or "selling based on the pushed appraised value from our last debt consolidation refinance when we took out 100%".
 
I sold a house FSBO. It was listed in the paper and on the Web.

When purchasing our home, I dealt only with the listing agent. Didn't drag a third party into the mix.
 
Originally posted by: Ornery
I sold a house FSBO. It was listed in the paper and on the Web? You were saying... ?
Click to expand...
MLS listing? Did you allow buyers agents? Most importantly, why would you sell it cheaper FSBO when you could avoid the hassle and make the realtor work for her fees by selling at a higher price and you get the same net? That question is always easy... because FSBO sellers are always buried and asking more than even a realtor would ask.
 
The folks I sold the home to got a VERY good price. We basically kept half the commision, as they did. WTF should a useless salesman get any part of the sale?
 
Originally posted by: JulesMaximus
Originally posted by: slycat
i've heard that if u already signed with a realtor...even if u later went and found your own house, u still gotta pay his/her fees.
Click to expand...

Wrong. The buyer doesn't pay the realtor fees. The seller does.
Click to expand...



Not if its FSBO. The seller is under no obligation to pay the buyser agents costs.
The seller may in order to get realtor's in, but not obligated.
 
Ask them if they have a property condition disclosure form filled out. Find out the assessed value of the property.
Ask if they have had a home inspection within the past 3 years, if they did, ask who did it and if you can contact them.
Ask if they have had an appraisal done within the past 3 years, if they did, ask who appraised it and ask if you can see the appraisal.
Ask to see their yearly tax bills. Ask why they are not listing with a realtor. Ask what bank they deal with for their mortgage. Ask about their direct neighbors.
Ask if the house had had any damage that needed repair while they owned it. Ask how long they have lived there. Ask to be shown any upgrades/repairs to the house personally and ask to see all documentation of the upgrade/repair.
 
That's a nice list, SampSon.

If the house is in a good location, and you really want it, don't be swayed by trivial crap. I always laugh at this show my wife watches, about fixing up a house for sale. An agent comes in and tells the owners what clutter to remove, rooms to paint & carpet etc. Low and behold, the house sells instantly for more than the asking price! It's a reflection on consumers today. They pass up their "dream house" because of a few cosmetic issues, but snatch it right up when somebody throws a couple hundred dollars worth of paint at it!

Worry about the most expensive stuff first, like leans and assessments, and work your way down. Carpet and paint is a piddly concern. Water in the crawl space or basement is over $10,000 to mess with. A roof is about $5,000. If this place uses a well for water, that could run into money. A whole new furnace, and A/C installed is well under $10,000... more like $5,000 for a medium sized house. Hot water tank is nothing, as is a dishwasher and other appliances. Termite damage could be insanely expensive. Just throwing thoughts out there...
 
Originally posted by: Ornery
That's a nice list, SampSon.

If the house is in a good location, and you really want it, don't be swayed by trivial crap. I always laugh at this show my wife watches, about fixing up a house for sale. An agent comes in and tells the owners what clutter to remove, rooms to paint & carpet etc. Low and behold, the house sells instantly for more than the asking price! It's a reflection on consumers today. They pass up their "dream house" because of a few cosmetic issues, but snatch it right up when somebody throws a couple hundred dollars worth of paint at it!

Worry about the most expensive stuff first, like leans and assessments, and work your way down. Carpet and paint is a piddly concern. Water in the crawl space or basement is over $10,000 to mess with. A roof is about $5,000. If this place uses a well for water, that could run into money. A whole new furnace, and A/C installed is well under $10,000... more like $5,000 for a medium sized house. Hot water tank is nothing, as is a dishwasher and other appliances. Termite damage could be insanely expensive. Just throwing thoughts out there...
Click to expand...
Thanks, it's part of my job.

Ornery is right, you worry about MECHANICAL SYSTEMS FIRST, let me repeat that YOU WORRY ABOUT MECHANICAL SYSTEMS FIRST.
A house is useless without heat, water, sewer and a good foundation.

Then you worry about structural integrity, though I would put structural integrity with mechanical systems. Foundation, roof, framing, subfloor, windows, drainage, are all the MOST important factors.

Cosmetics are of the lowest importance. They shouldn't even be on your list. Anyone can gut a house and fix it up the way they want very easily.

You should shop for a house by location, size and style. Only.

 
Ask if they have a septic tank, and if so how old it is. They don't last forever (~30 years?), and they're expensive to replace ($20-30k)
 
Originally posted by: SampSon
Originally posted by: Ornery
That's a nice list, SampSon.

If the house is in a good location, and you really want it, don't be swayed by trivial crap. I always laugh at this show my wife watches, about fixing up a house for sale. An agent comes in and tells the owners what clutter to remove, rooms to paint & carpet etc. Low and behold, the house sells instantly for more than the asking price! It's a reflection on consumers today. They pass up their "dream house" because of a few cosmetic issues, but snatch it right up when somebody throws a couple hundred dollars worth of paint at it!

Worry about the most expensive stuff first, like leans and assessments, and work your way down. Carpet and paint is a piddly concern. Water in the crawl space or basement is over $10,000 to mess with. A roof is about $5,000. If this place uses a well for water, that could run into money. A whole new furnace, and A/C installed is well under $10,000... more like $5,000 for a medium sized house. Hot water tank is nothing, as is a dishwasher and other appliances. Termite damage could be insanely expensive. Just throwing thoughts out there...
Click to expand...
Thanks, it's part of my job.

Ornery is right, you worry about MECHANICAL SYSTEMS FIRST, let me repeat that YOU WORRY ABOUT MECHANICAL SYSTEMS FIRST.
A house is useless without heat, water, sewer and a good foundation.

Then you worry about structural integrity, though I would put structural integrity with mechanical systems. Foundation, roof, framing, subfloor, windows, drainage, are all the MOST important factors.

Cosmetics are of the lowest importance. They shouldn't even be on your list. Anyone can gut a house and fix it up the way they want very easily.

You should shop for a house by location, size and style. Only.
Click to expand...

This is why we passed up the last house. Cosmetically it was fine, but mechanically it was a disaster.

This house was nice both cosmetically and mechanically. Roof was good, new HWH, new furnace, It was not tilted 30 degrees in any way 😛

I do hate house hunting, though.
 
Originally posted by: mugs
Ask if they have a septic tank, and if so how old it is. They don't last forever (~30 years?), and they're expensive to replace ($20-30k)
Click to expand...
Not even close to that expensive. But yes, if there is a well and septic ask the last time a dye test was run on the septic and the last time a water quality test was run on the well.

Also check out the water purification system they have if there is a well.
 
Originally posted by: UpGrD
Originally posted by: JulesMaximus
Originally posted by: slycat
i've heard that if u already signed with a realtor...even if u later went and found your own house, u still gotta pay his/her fees.
Click to expand...

Wrong. The buyer doesn't pay the realtor fees. The seller does.
Click to expand...



Not if its FSBO. The seller is under no obligation to pay the buyser agents costs.
The seller may in order to get realtor's in, but not obligated.
Click to expand...

That is precisely why most agents will not even show FSBO homes to their clients.

My wife was working to list a home for someone who lives a few blocks away from us last summer. He decided to go with help-u-sell instead. My wife happened to get another listing, same model but not as many upgrades a few weeks later and she sold it in 30 days while his sat on the market for more than 60 days. He also sold it for $20k less than the home my wife sold.
 
Originally posted by: Ornery
That's a nice list, SampSon.

If the house is in a good location, and you really want it, don't be swayed by trivial crap. I always laugh at this show my wife watches, about fixing up a house for sale. An agent comes in and tells the owners what clutter to remove, rooms to paint & carpet etc. Low and behold, the house sells instantly for more than the asking price! It's a reflection on consumers today. They pass up their "dream house" because of a few cosmetic issues, but snatch it right up when somebody throws a couple hundred dollars worth of paint at it!

Worry about the most expensive stuff first, like leans and assessments, and work your way down. Carpet and paint is a piddly concern. Water in the crawl space or basement is over $10,000 to mess with. A roof is about $5,000. If this place uses a well for water, that could run into money. A whole new furnace, and A/C installed is well under $10,000... more like $5,000 for a medium sized house. Hot water tank is nothing, as is a dishwasher and other appliances. Termite damage could be insanely expensive. Just throwing thoughts out there...
Click to expand...

All that stuff would show up during a home inspection at which point you either request that the seller pay for those repairs or you walk away.

Carpet and paint does make a home more marketable/desireable. Scoff all you want but the first appearance makes a huge difference. Let me put it to you this way, if you are selling a home that's messy and needs paint and carpet would you spend the time and money to make the home more presentable or would you rather it sit on the market for months while you continue to make the payments?

And a good realtor is worth the money.
 
Originally posted by: JulesMaximus
Originally posted by: Ornery
That's a nice list, SampSon.

If the house is in a good location, and you really want it, don't be swayed by trivial crap. I always laugh at this show my wife watches, about fixing up a house for sale. An agent comes in and tells the owners what clutter to remove, rooms to paint & carpet etc. Low and behold, the house sells instantly for more than the asking price! It's a reflection on consumers today. They pass up their "dream house" because of a few cosmetic issues, but snatch it right up when somebody throws a couple hundred dollars worth of paint at it!

Worry about the most expensive stuff first, like leans and assessments, and work your way down. Carpet and paint is a piddly concern. Water in the crawl space or basement is over $10,000 to mess with. A roof is about $5,000. If this place uses a well for water, that could run into money. A whole new furnace, and A/C installed is well under $10,000... more like $5,000 for a medium sized house. Hot water tank is nothing, as is a dishwasher and other appliances. Termite damage could be insanely expensive. Just throwing thoughts out there...
Click to expand...

All that stuff would show up during a home inspection at which point you either request that the seller pay for those repairs or you walk away.

Carpet and paint does make a home more marketable/desireable. Scoff all you want but the first appearance makes a huge difference. Let me put it to you this way, if you are selling a home that's messy and needs paint and carpet would you spend the time and money to make the home more presentable or would you rather it sit on the market for months while you continue to make the payments?

And a good realtor is worth the money.
Click to expand...


you're both right. the initial first impression is important, but so is all the stuff that is mechanical. we have looked at tons of houses with our realtor and most were so bad, i felt dirty after being in them.

our realtor has been great, and i don't want to screw her, but i dont want to pay all/half of her comissions.
 
Originally posted by: Lola
Originally posted by: JulesMaximus
Originally posted by: Ornery
That's a nice list, SampSon.

If the house is in a good location, and you really want it, don't be swayed by trivial crap. I always laugh at this show my wife watches, about fixing up a house for sale. An agent comes in and tells the owners what clutter to remove, rooms to paint & carpet etc. Low and behold, the house sells instantly for more than the asking price! It's a reflection on consumers today. They pass up their "dream house" because of a few cosmetic issues, but snatch it right up when somebody throws a couple hundred dollars worth of paint at it!

Worry about the most expensive stuff first, like leans and assessments, and work your way down. Carpet and paint is a piddly concern. Water in the crawl space or basement is over $10,000 to mess with. A roof is about $5,000. If this place uses a well for water, that could run into money. A whole new furnace, and A/C installed is well under $10,000... more like $5,000 for a medium sized house. Hot water tank is nothing, as is a dishwasher and other appliances. Termite damage could be insanely expensive. Just throwing thoughts out there...
Click to expand...

All that stuff would show up during a home inspection at which point you either request that the seller pay for those repairs or you walk away.

Carpet and paint does make a home more marketable/desireable. Scoff all you want but the first appearance makes a huge difference. Let me put it to you this way, if you are selling a home that's messy and needs paint and carpet would you spend the time and money to make the home more presentable or would you rather it sit on the market for months while you continue to make the payments?

And a good realtor is worth the money.
Click to expand...


you're both right. the initial first impression is important, but so is all the stuff that is mechanical. we have looked at tons of houses with our realtor and most were so bad, i felt dirty after being in them.

our realtor has been great, and i don't want to screw her, but i dont want to pay all/half of her comissions.
Click to expand...

You don't pay any of her commission though. At least not here in CA. The commissions come out of the sellers proceeds.
 
Of course I'm willing to play that game, and "spruce up" a house for sale. I'm just saying that consumers are generally pretty dumb, where that issue is concerned.

When I was buying, back when interest rates were 17%, it was a buyer's market, but I didn't have much money. I was concerned first and foremost with... LOCATION! Everything, and I mean EVERYTHING else was secondary. If a house was in the right location, and within my means I didn't give a damn how it was carpeted, painted or even if there was water in the basement. All that can be negotiated and repaired, but the location can't be changed.

IMO, agents are probably first on the list as the cause of inflation. Mark the price of everything up by 7% and add NOTHING to the value! Got no use for 'em... :disgust:

BTW, my wife almost got into real estate. She LOVES it! Only thing that stopped her was the horrible hours. I'd have backed her 100%, too. Sort of like buying stock in Monster Cable, but never buying their products. 😛
 
Originally posted by: SampSon
Originally posted by: mugs
Ask if they have a septic tank, and if so how old it is. They don't last forever (~30 years?), and they're expensive to replace ($20-30k)
Click to expand...
Not even close to that expensive. But yes, if there is a well and septic ask the last time a dye test was run on the septic and the last time a water quality test was run on the well.

Also check out the water purification system they have if there is a well.
Click to expand...

Maybe it depends on the area, that's what it cost when we had to replace ours.
 
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