How To Handle An Offer From A FSBO Or Buyer With No Agent

Of course this is the best scenario as you have no commission other than our up front fee!

INFORMATION NEEDED TO MAKE DRAW UP THE OFFER:

  1. Buyer's full names & your full name and names you wish to appear on the offer.
  2. Buyers & your current address.
  3. Address of property.
  4. Offering price.
  5. Amount buyer wishes to put down.
  6. An estimated closing date.
  7. Any contingencies (ways to back out if need be); inspection, appraisal, attorney approval, pest inspection, Radon are the most common ones.
  8. Occupancy, at closing or how many days after closing.
  9. Amount of the deposit to hold the home.
  10. How long do you want the offer good for? Usually a day or two so it's not hanging out there.

When the offer is accepted:

  1. We verify the contract is valid and legally binding to all parties
  2. Buyer will need to send the Earnest money deposit to be held by a title company.  
  3. INSPECTION: We are off and running! Generally, the first thing to do will be the inspection. Buyer will need to hire and pay for a property inspector which may be around $350 - $400. You'll need to coordinate a time to have the buyer meet the inspector  at the home to inspect the property. Seller does not typicall attend the inspection.  Typically the inspection will take 4 hours as they'll check every part of the home.
  4. INSPECTION ISSUES: Most homes will have some inspection issues. Any issues are usually negotiated between buyer and seller. 
  5. Appraisal: Once we are satisfied with the inspection we move on the the appraisal. Buyer will have paid a "Pre approval fee" to the lender which usually covers the appraisal fee. Typically, the buyer is responsible to pay for the appraisal. A local appraiser is contacted, goes out and does the appraisal. This should not take more than a week. It is a good idea to stay on top of the  loan officer to prevent delays! You don't want the ball dropped here and end up with a delay. If the appraisal comes in at or above the agreed upon price you should be able to close without any issues. Just make sure you work closely with your lender to get them any outstanding conditions.
  6. What if the appraisal comes in low? All lenders will base the loan off of the lower of the appraised value or sales price. So... if the home appraises for less than the agreed upon price the appraised value generally becomes the new sales price. SELLER IS UPSET: Obviously the seller will be upset they may not get the agreed upon price for the home.