How to get FSBO under contract?

Question

Happy New Year folks. I have a potential property that I would like to put under contract (first deal), and it's an FSBO home. I'm totally new to this and don't want to build rapport with the owner, without miscommunications during contractual process.

Is this the correct sequence to follow?

- Call the owner, check up on the property and ask questions

- Followup a few days later with the offer

- If offer accepted, pass along the purchase and sale agreement

Finally, what is the most transparent way to get the owner to agree to the purchase and sale without causing confusion?

John T. · Answer

@John Walston  A real estate wholesaler is a person or company that buys properties at a discounted price and then resells them to other investors, usually at a higher price. The wholesaler acts as a middleman between the seller and the end buyer, and makes a profit by marking up the price of the property.Real estate wholesaling is a fast-paced and high-risk business, as the wholesaler must be able to find properties at a steep discount and then sell them quickly to another investor before the market changes. It can be a lucrative way to make money in the real estate industry, but it requires a strong understanding of the market, good negotiation skills, and the ability to move quickly on opportunities.

See also Wholesaling in Texas Real Estate regarding Texas laws and regulations on wholesalers.

Rob Gillespie · Answer

Happy New Year!

Dont over complicate it. Your goal is to put a contract on the property and make sure it is for less than it is worth.

I would like to see the deal and the numbers in specifics so I could give you more guidance. This is very vague.

The RIGHT questions are important. it is more about the situation than it is the property.

give some more details and lets see if we can get ya a roadmap to making an offer that makes sense.

Carla Jones · Answer

@Eliott Elias You say get a real estate professional to help do real estate agents like to deal with wholesalers and do all agents know about wholesaling?

Ramandeep Sidhu · Answer

Here is a suggested sequence for getting an FSBO (For Sale By Owner) property under contract:

• 1. Research the property and the owner. Before you make an offer, it's important to have a good understanding of the property's value, any potential issues or challenges, and the owner's motivations for selling. This will help you make an informed offer and negotiate effectively.

• 2. Make initial contact with the owner. You can do this by phone, email, or in person. Introduce yourself and express your interest in the property. Ask any questions you have about the property, and try to build rapport with the owner.

• 3. Submit your offer. After you've had a chance to research the property and talk to the owner, you're ready to submit your offer. Be sure to clearly state all the terms of the offer, including the price, any contingencies, and the timeline for closing.

• 4. Negotiate, if necessary. If the owner counteroffers or raises any issues, you'll need to negotiate to come to an agreement. Be prepared to be flexible, but also make sure you get what you need in order to make the deal work for you.
• 
• 5. Sign the purchase and sale agreement. Once you and the owner have agreed on all the terms, it's time to put the deal in writing. You can use a standard purchase and sale agreement or have an attorney draft a contract. Be sure to carefully review the agreement before signing to ensure that all the terms are correct.
•

To be as transparent as possible, it's important to be upfront and clear about your intentions and expectations. Be clear about what you're offering, and be prepared to explain your reasoning if the owner asks. Also, be open to answering any questions the owner may have. This will help build trust and avoid misunderstandings.

Steve Milford · Answer

@John Walston

Make it easy on yourself. Ask the seller, when they are willing to be out, how much they would settle for, and the preferred terms of the deal. Then write ss

Omething as a win-win for both.

When I write an "offer" it IS the purchase and sale agreement. What you put in it is from the conversation. You want an agreement and signature to lock it up. Otherwise someone else might grab it from you. If I had a nickel every time a buyer or seller tells me what they would do lol, you know how that goes!

John Walston · Answer

I have laid out the possible sequence of events that I will follow in order to obtain the purchase and sale agreement:

"Is this the correct sequence to follow?

- Call the owner, check up on the property and ask questions

- Followup a few days later with the offer

- If offer accepted, pass along the purchase and sale agreement"

Obviously after you make a cash offer the seller will be expecting cash, but you offer them a contract to purchase and sell their home instead. Doesn't this take some explaining? Won't an FSBO seller be confused as to why he's not getting his cash upfront?

A helpful answer may read, 'after getting the offer accepted, you simply explain to the owner that you need him to sign a purchase and sale agreement because XYZ...

John Walston · Answer

As mentioned above, I am totally familiar with the definition of wholesaling. I am asking about the process   of  putting a home  under contract.

Bryant Brislin · Answer

I'm really confused by "Finally, what is the most transparent way to get the owner to agree to the purchase and sale without causing confusion?". What does that mean? Are you actually an investor who would be buying the property yourself? Or are you trying to wholesale? Feel free to DM me, if you'd like.

Eliott Elias · Answer

FSBO properties for me have been the most delusional sellers. They all think they are realtors and have gold under their house. I would get a real estate professional to guide you through this.

How to get FSBO under contract?

Most Popular Reply