FSBO turned to agent - seller not sure - really?!?

Question

I started conversations with an owner last month who said she was going to sell without an agent and use her attorney. Ok that is great I have an attorney as well and prepared to hand an agreement sent over to her. Originally, I got her number from an agent whose sign was in the yard. She does not live at the property and rents it out currently occupied. This agent is a "friend" who listed the property for her but no takers so the sign remained in the yard. Back to my conversations with her...we had two discussions about the property and am definitely interested. I asked if she was using the agent and she isn't clear if this "friend" that is an agent is doing his for free. I know I need representation but can't get her to commit to one way or the other. I she is going to use this agent "friend" then I want to get my agent involved. When I asked her again about this all she said was its still FSBO but I (she) will get her agent "friend" to call me. Ok....help...how can I steer this if possible. She's on the fence ....

James Morrison · Answer

I'm with Steven Picker and his first comment. Don't waste your time with waiting to hear from the agent. Send the owner an Offer Sheet and an Escrow check. She can work with her attorney and you with yours to close this transaction. There's no need for an agent in this deal.

Daria B. · Answer

Wayne Brooks She's having her agent call me. As was our last words in our conversation. I didn't know how to reply so I just said ok. Would it be off putting to inquire of the agent if he's getting paid and what %? I could then bring my agent in if she's going to pay him the usual customary fees. Steven Picker Who holds escrow? That would have to be a 3rd party. I like the idea of putting the agreement up front and then she has to decide what to do. Though it could still be using her friend.

Account Closed · Answer

What is the actual market value of the property? What is the actual amount of repairs needed? It sounds like the property might not even be worth the $82k and it might need $10K worth of repairs .are you paying cash or financing ?What are your reasons for wanting the property? If you can answer those questions you will know how to proceed or if pass . You could do a subject to financing whereby you assume the existing mortgage and then offer some cash to the owners .I am assuming the note is a traditional mortgage or is it something different There are too many unknown bits of information to make a decision

Account Closed · Answer

You have time wait for contact and she what they want to sell to you for and the terms It is not a complicated process and once you receive their information you will know how to proceed.

Account Closed · Answer

@Daria B. I assumed that you are an investor and have already ran all the comps on the property ,rehab figures etc If you know the price you want to pay and know how your are going to pay for it then by all means go directly to the source. If the other agent contacts you you can always take the agreement to a lawyer or your friend to look over . If this is your first time then I would work out a deal with your agent friend to negotiate for you. The process is really not complicated as long as you are ready with your numbers

Account Closed · Answer

Bring over a purchase agreement and have a check made out to escrow tell her you must know an answer in 3 days and are ready to close quickly. If her agent calls you great,if she signs the purchase agreement great, if no answer try again after 3 days.Be firm and persistent

Daria B. · Answer

This turned out to not be a deal. Forget about the value, it's not worth what I was going to offer. This is why I can't fathom offering anything on property without seeing it. For me it would be huge waste of time to have a contract written up and then schedule an inspection, even if it were me going over to look at it before the scheduling the inspector. I would be canceling the contract with what I saw today had I gone the route of an offer first.The owner I suspect has no idea what the inside looks like rather than the outside of the duplex.I looked at it today and it was a 10 minute "quick" walk thru of the upstairs and downstairs. Upstairs tenants had the flu. Owner never told me the tenant smoked (outside evidence) though I didn't smell any inside and also had a dog. So the parents and their single child live in this 2/1 space. She apologized for the untidy and very unkempt living space. I was polite and told her that I would have not come had I known she was ill. Apparently, she couldn't get in touch with the owner.So the downstairs, supposed to be 1 tenant. Well his roommate and his girlfriend were there so I suspect that the owner again doesn't know what's going on with the place. Both of these living spaces are as it is with the outside (after seeing up close) in horrible condition. It would be an understatement to say deferred maintenance.She won't get what she wants and now I see why they can't sell.Thanks for helping me think through this and giving me some ideas for the next FSBO and what to do for handling the contract.Already onto the next..... :)@Wayne BrooksAccount Closed

Daria B. · Answer

Account ClosedGetting actual value-having it appraised is still the value based on what that appraiser will come back with. There aren't too many duplexes that I see in the area.Value is so subjective that what is valuable to me is not the same value to someone else.So how then to determine the value in this equation?Thanks for answering.....

Daria B. · Answer

The seller is the person with the agent "friend". I have my own agent when other agents are involved. This started out as a FSBO and I also have my own attorney that I would have used.This issue that came up was that after the 1st conversation the owner started talking about using her agent that is a "friend". She never bought this up until I talked to her a 2nd time.This through me off a little because I was expecting to use my attorney and not get a buyer agent involved.When I called her today, I was going directly to the source until she bought up her friend agent. At that point I'm wondering who I am dealing with and asked her. She then said this other person that IS an agent would be calling me back so that I can see the place. At that point, I'm thinking I need to get my agent involved instead of just having my attorney draw up a purchase agreement.

Wayne Brooks · Answer

Well, we don't know who is closer to the actual value of the property, but you're still $25k apart, not very close.