New Boston Texas - Sell without agent?

Question

How do I sell a house without an agent? I am trying to sell my Dad's house for him. It needs foundation repair and cosmetic remodel, so investor or wholesaler only but I have never sold or bought anything without an agent. Trying to avoid fees since he will likely be at a loss. Located in North East Texas.

Asking $40k, ARV is minimum $100k

Guy Gimenez · Answer

I would be very cautious about getting under contract with a "wholesaler" as they're not the end buyer and most of them will only drag you along for the ride and drop the contract once they realize they're unable to flip the purchase contract. Stick with seasoned buyers who can show you funds on deposit in their personal or business account, can provide you deeds from the last 3 to 5 properties they've actually purchased in the last few months, etc. Be sure to include in your contract that the buyer "shall not assign this contract"...this will help push out the fakers from the takers. Many will push you to sign with them before they provide any evidence of their ability to perform so take your time and think through the each offer. If they're not using the TREC One to Four Family Resale form, you should be very wary and look for the 7 red flags indicative of most wholesalers (versus actual buyers).

Liz Ellis · Answer

Thank you everyone for the input. The property is under contract with a local seasoned investor. Thanks for the advice to call the Title company. I have used them before so I at least know of them, but getting their breakdown of what happens next will be helpful.

Eliott Elias · Answer

If your goal is to maximize the sales price of the home i'm not sure if eliminating an agent is going to solve your problem, especially since you have minimal experience selling real estate. If you are targeting wholesalers and investors you are welcoming low ball offers. Homeowners are who are going to get you competitive offers. If you'd like to list yourself put a sign in the front yard and post FSBO on Zillow and Facebook.

Eliott Elias · Answer

Gotcha, you will not be drafting contacts but rather receiving them. Go over the TREC one to four contract and get a good understanding of it. Who pays survey, title, option period, earnest money etc... https://www.trec.texas.gov/sit...

Liz Ellis · Answer

@Bruce Lynn Hi Bruce, thanks for the insight. The property is under contract but if anything changes I will let you know and set up a viewing for you.

Ivan T. · Answer

Try calling a Title company down there so your hands off and they will make sure the documents get done correctly. They do these deals all the time and will help you thru with it when you explain your situation. Also will be better so you are not stressing about if you did it correctly.

Joe Norman · Answer

If you want to sell a distressed property without an agent I would reach out to seasoned, experienced, well capitalized investors in your area and ask them to give you an offer. They will have all of the contracts and relationships necessary to get the deal to the closing table. Beware of contract flippers/assignable contracts - only work with the end seller themselves.Good luck.

John Steffen · Answer

As Elliot said, go over the TREC 1-4 family contract for familiarity as that's what you should be receiving. Definitely welcome wholesalers and investors to sell it in reasonable time for all cash and have them cover sellers title costs. To assure your time is not wasted I would not give them more than a 7-10 day option period, a serious investor or serious wholesalers with legit buyers shouldn't need more than that. A quick phone call with their suggested title company before accepting (or suggest your own reputable one) to familiarize yourself with the escrow process isn't a bad idea either and you want to make sure the transaction is in good hands. And references are invaluable - no problem whatsoever asking your potential buyer to share a few contacts of those they've closed deals with in the past. If all sounds good and the price is right, go for it! Good luck.

Bruce Lynn · Answer

Might be a great candidate for a 203 FHA owner occupied loan that would all the buyer to get financing for foundation repair and interior rehab.I took a look and didn't see anything on the market today or cancelled, expired, withdrawn for a similar house? Are you sure agent you hired had it active?Investors also look on MLS for properties. That's my #1 go to source.Any chance I could take a look at it? Do you have a lockbox on it or can you send me MLS details?

Liz Ellis · Answer

Hi Eliott. Thanks for the response. The goal is to get rid of the house on my Dad's timeline with no contingencies - which is why I am inclined to go with an investor or wholesaler. In the New Boston market it is highly unlikely that a homeowner would take on the foundation repair and cosmetic overhaul that it requires. It will not pass appraisal so cash buyer is required.Thanks for the tips on listing it. That is a pretty obvious step that I have already taken and received a ton of inquiries and one offer already. I do not know the next steps as far as contract drafting or legal paperwork required to sell a home FSBO and that is more what I was looking for help on.Thanks again.