Found A FSBO Property, What Now?

[Juan Alvarez]

We've Been Working With A Realtor But Found A FSBO Property on mls , What Now? I'm assuming the seller went the FSBO route to avoid paying the extra fees. Let's say the agent commission fee is 3% is that 3% from the sale price? I will be using the FHA loan which requires a 3.5% down payment, so will I essentially be putting down 6.5%? Excuse my ignorance on FSBOs properties.

[Jason Wray]

Juan, Your FHA 3.5% DP is not associated with the 3% agent fee. That fee is paid by the seller and does come out of your costs. I would how ever ask for "Seller contribution" towards closing costs between 3-4% is the norm in most cases. That 3%-4% is times the purchase price to cover closing costs. A lot of people forget that the down payment only covers the the DP for example 3.5% FHA. You will still have closing costs in the range of 3.5-4.5% of the loan amount. That is why 3%-4% seller contribution is a good idea to ask for to avoid more money out of pocket. Have you been approved already for the loan?