First Time Home Buyer...

[MiniHoofBeats]

Can anyone here help me, as a first time home buyer, understand the step by step for purchasing your first home if you DO NOT have a realtor?

I do have a realtor but, I had someone contact me last night with a property near town on almost 4 acres (different from the one I vented about lol). They're willing to negotiate pricing on it, but, they at this time are only offering it as For Sale By Owner and I assume that means, no realtors allowed? If I were to proceed with this, what would I all need to do?

I already have in mind:

- appraisal

- home inspection

- well/septic inspection

I am hoping someone can lay out the steps...if we agree on an offer, pending approval of above inspections, what happens next? I am pre-approved for a loan, does it have to be used through a realtor?

Help?

 

[backwoodsnanny]

I dont think so if the bank appraisal passes I dont see why you need a realtor. Talk with the bank who has preapproved you and they can help. We have bought two homes with no realtor involved and our bank helped us know all the things we should do. My son lives in one of them and we sold the other but when we sold we did use a realtor. The owner of the property is trying to save the 10 + percent that they would have to pay the realtor so should give you a break on the price.

 

[Charlene]

TOLD YA SO!!!!! :bgrin

i don't know where you live and what fees would be but i wouldn't think it would cost you and arm and a leg to hire an attorney to oversee the transaction. there are certain things that, by law, have to be done including a lead paint disclosure form, among other things. we do real estate closings all the time and charge, for a routine one, right around 300$. it's money well spent and can even be deducted from the price of the real estate so you would really not have to put out any money out of pocket.

there are SO many things to consider. so there are no surprises, you might ask the seller to give you a ballpark figure of average utility costs. find out if the ground has been surveyed and if so, fine. if not, you should check the deed or abstract for exact property lines so you are getting what you THINK you are getting.

your banker will know all of this stuff but just to make sure all the t's are crossed and i's are dotted, i'd consult an attorney.

good luck, i hope this is the one you've been waiting for!!! :aktion033:

 

[MiniHoofBeats]

Thanks for the advice so far! I have sent e-mails out to my banker and realtor asking lots of questions. My realtor said she legally can't help with much advice but she still helped explain a LOT and did say she can point me in the right direction towards good Real Estate Attorney's and websites to help me learn more about FSBO!

The lady selling the property, I asked if she could explain a little about FSBO and she said she really didn't know, she just stuck a sign out in the yard to see if anyone would stop by...oi vey...this means more work on MY shoulders to make sure I know what is going on!

I read online that it should be the Sellers responsibility to take care of paperwork, which to me means they hire the real estate attorney...but...is that bad for me though? I mean, should I hire one so I know they're working for me and not so much for the seller?

Thanks Charlene for adding asking about average utility costs and getting to review the deed /property evaluation to see where the boundaries are for the property!

I am waiting to hear back from my banker still though on what all would be entailed in following through with a FSBO...

 

[Ashley]

You can have have somebody on your side. About all forsale by owner means is that the person selling the house isnt going through an agent.

 

[MiniHoofBeats]

So does anyone know the step by step process? I mean for example:

Put in offer

Offer accepted, pending inspection approvals

Hire real estate attorney

Sign Papers

Bank exchanges money

Move in!

Now i'm sure there's stuff in between, does anyone know??

Thanks!

 

[Sterling]

I'd contact a RE attorney....they can guide you and help with all your questions.

 

[Charlene]

I'd contact a RE attorney....they can guide you and help with all your questions.

i second that idea. there are just so many things that should be done, the list is almost endless. that being said, don't get discouraged. most of what you will need to do, a good real estate attorney will be able to accomplish in a heartbeat and will leave no stone unturned. in the long run, it's well worth the money you will spend! chances are, whatever bank you use will be able to recommend an attorney and may even have one on retainer for just such occasions.

 

[kaykay]

In Ohio a lot of Realtors will oversee a fsbo for 300.00. I would definitely hire an attorney to oversee your best interest and make sure that all the paperwork is done properly. That is usually 250-300.00. Dont forget that someone has to purchase title insurance and that is usually the seller. Also make sure the seller pays taxes up to the time you take possession. (i have heard of deals where people forgot the taxes and the buyer got stuck paying taxes for the time they didnt even live there!)

Also I would hire the attorney to look over the offer BEFORE its made. One thing I have put in every contract of every house I have bought (because I learned the hard way with the first one) is, All trash and garbage must be removed from the house AND PROPERTY by the time of the 24 hour walk through.

You would not believe how many people will pack up and leave all the trash for you to remove. ughh.

Make SURE you do not skip the walk through 24 hours before closing! You dont want suprises after closing because then its too late.

 

[Cathy_H]

This past spring we bought 6 acres from a man that just had a sign stuck on it. A real estate lawyer did the paperwork & I think it cost us less than $300.......... Ours is in an area that has restrictions & requires a $100 annual fee. If this one has restrictions make sure you get a copy before hand to preview.... We should have gotten ours surveyed before finalizing but I believed the man when he told us he could find the markers. Since he bought the land 20 + years ago two are not to be found so we are getting ready to do that before we start building....... We did get copies of the plat etc............ Actually I thought with FSBO, it didn't mean the buyer could not use a realtor to help etc.

 

[Bess Kelly]

FSBO means the seller isn't using or paying for help :bgrin

You can hire a realtor, that you pay, for your side of the buy -- in most states, if not ALL.

Realtors are trained to help you protect yourself with things like deed restrictions, house inspections, homeowner associations, undisclosed/known defects, zoning, septics, land rights and on and on.

Consider asking your current realtor what they would charge to help you with this property. The amount could/should be based on an amount paid whether or not you buy/make offer.......and more should it go to closing. Remember, realtors do a whole lot more than just show up at the closing table!

 

[MiniHoofBeats]

Thanks you guys you're being ever so helpful! I am making notes on ALL of this to make sure i'm prepared when I meet with the seller early next week to view the property. I am so impatient I want to go see it now but the seller is having a busy week and works over the weekend so we get to wait for early next week. Thats okay though, gives me more time to read up and prepare!

I will hire a real estate attorney if things get that far, I definitely don't want to be stupid about my first purchase and miss out on things. KayKay, you were a ton of help with covering things like making sure trash is removed from the premises before the 24 hour walk through (I didn't even know there was a 24 hour walkthrough!), and making sure they pay for taxes up until the closing date...I never would have thought of those things on my own!

Thanks!

Bess Kelley - I have talked it over with my realtor, she is available of course lol but she requires 6% which would be out of my pocket, and i'd personally not have to tie in that 6% to the purchase offer of the home (which is what I would have to do) so I am looking at just hiring a real estate attorney but, I know my realtor is available if things get too sticky!

And again, that is IF things go this far...I still haven't viewed the property to see how things will work out!

One thing i'm concerned about is that it is on 4 acres, but located in an area close enough to town that if it's not 5 acres agric. then you need a minimum of 2.5 acres but need to get a conditional use permit so i'm wondering if the Seller will want to deal with me, i'm going to have so many contingencies! This one would be, pending receiving a conditional use permit and in this area you need to submit your info to the town board members, they look it over and decide whether or not you can get the permit...and sometimes that can take weeks!

Tons of things swirling in my mind here =)

 

[runamuk]

Thanks for the advice so far! I have sent e-mails out to my banker and realtor asking lots of questions. My realtor said she legally can't help with much advice but she still helped explain a LOT and did say she can point me in the right direction towards good Real Estate Attorney's and websites to help me learn more about FSBO!

The lady selling the property, I asked if she could explain a little about FSBO and she said she really didn't know, she just stuck a sign out in the yard to see if anyone would stop by...oi vey...this means more work on MY shoulders to make sure I know what is going on!

I read online that it should be the Sellers responsibility to take care of paperwork, which to me means they hire the real estate attorney...but...is that bad for me though? I mean, should I hire one so I know they're working for me and not so much for the seller?

Thanks Charlene for adding asking about average utility costs and getting to review the deed /property evaluation to see where the boundaries are for the property!

I am waiting to hear back from my banker still though on what all would be entailed in following through with a FSBO...

Two suggestions I can offer.

First usually FSBO is done to avoid paying the commission fees. I know in some areas you can find realtors who will take FSBO's through the proccess for a reduced commission or flat fee paid by the buyer.

Second there are real estate attorneys often connected to title companies who offer flat fee services .......you might be surprised as I found several who were quite reasonable.

ok and a third suggestion :bgrin contact a title company they are very very helpful and can often help you wade through what you must have in a FSBO purchase.

 

[Charlene]

maybe this has already been covered and i don't know if you are within "city/town" limits but i assume you are planning to keep your minis on your new place (should you GET your new place, of course,

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: ) and if so, you should check into the local zoning ordinances to make sure you wouldn't be violating any having to do with livestock, etc.

the little down where i lived for years and boarded my horses at a nearby farm had NO livestock ordinances. of course, that didn't bother me in the least but many of the locals didn't appreciate people staking goats out in their yard. of course, that wouldn't have been ME!

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:

:

:

 

[kaykay]

always always do a 24 hr before closing walk thru! this has to be written in the purchase contract. I hate to say it but many many times you will find the seller took things like light fixtures and I have even heard of one seller who took every door handle off

: Our last house when we did the 24 hr walk thru we found a HUGE purple stain in the living room that was not there when we made the offer to purchase. Since it was before closing we made the seller pay a carpet company to come remove the stain. If we hadnt done the walk thru we would have never known until it was too late.

So lets say your closing date is 11-20-07. So you write in the contract that you will be doing a walk thru the morning of 11-19-07

 

[MiniHoofBeats]

Great idea's and help!!

Charlene, yes I checked with county ordinances already, that's the FIRST thing I do when looking at a house =) As I stated, this area is either 5 acres agric. or a minimum of 2.5 acres for a conditional use permit. This house has 4 acres so if I can get a permit, I can keep livestock on the property.

 

[Charlene]

Great idea's and help!!

Charlene, yes I checked with county ordinances already, that's the FIRST thing I do when looking at a house =) As I stated, this area is either 5 acres agric. or a minimum of 2.5 acres for a conditional use permit. This house has 4 acres so if I can get a permit, I can keep livestock on the property.

good job!! so, according to kaykay, you'll be closing on 11/20? when's the housewarming party?? :bgrin