Cash offer on house, where do I start? FSBO!

Asked by Jinbun77, Abilene, TX Sun Apr 26, 2009

Hi,
A friend of a friend came over to my house and wants to buy it for cash for their parents. We are eagerto sell because we are being transferred for the military.

They are going to give us money to pay for everything so that we do not have any out of pocket closing costs. I don't even know where to start, Please help?

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16
T.E. & Naima…, Agent, Dallas, TX
Sun Apr 26, 2009
Fairness aside for the moment, you are best served by getting some help from someone who is familiar with real estate transactions, such as a Realtor or real estate attorney. What you pay for those services will likely be a good investment to prevent consequences down the road and second thoughts by either party.

Note that all closings involved costs above and beyond the sales price. Closing costs (even for a cash deal) cover the recording, any title search or insurance costs, attorneys fees to draft a proper deed, and assure that the old mortgage loan is paid off and released properly. In addition to deciding on a price, you need to decide who is paying for what.

Fairness dictates you step back for a moment and assess whether the price offered is fair both to you and to the buyer. If you are satisfied that neither you nor the buyer will have regrets that either prevent closing or cause some legal action later, then your next step is decide who should help you.

Typically in these cases we recommend finding a knowledgeable attorney who is willing to close the deal for typical title fees (and there are probably several near you). A title company can also be a good resource -- they will have an attorney or use one for you. A Realtor can help you with the valuation part but the transaction still needs to close and an escrow officer is best used when a mortgage is being paid off or a new mortgage is made.
Web Reference:  http://www.SumnerRealty.com
1 vote
Vicky Chrisn…, Agent, Purcellvile, VA
Sun Apr 26, 2009
Determine if hiring a real estate agent - paid on a flat fee basis, with no fees for marketing, OR hiring an attorney is in your best interest. If it will be a simple contract (sounds like it with this), a real estate agent is probably your best bet. If it will be more complicated, then an attorney is better. Also, I am in VA, I don't know your local laws... if your locality requires the contract be written or reviewed by an attorney then skip the agent and go straight to the attorney.
1 vote
Janine Love, Agent, The Woodlands, TX
Sun Apr 26, 2009
If you know what the Fair Market Value of your home is, and you feel that this is a fair price that your neighbor is paying you for the home, the next step would be to get a contract written up, have your neighbors sign off on it and they should give you an Earnest Money check (depending on the sales price Earnest Money can average from $500 up, depending on what you are comfortable with). You should go through a Title Company to close on your home, and to do the Title Work, supply the Title Policy, etc. You can look in the Yellow Pages for a Title Company, but pick a reputable one. The Title Company will take care of paying off all of your liens on the home, take care of tax prorations, recording the deed, etc. I would have the Earnest Money check made out in the Title Companies name and it will be credited on your final closing statement.

If you have any more questions, feel free to contact me.
1 vote
Randy Dodd, Agent, Abilene, TX
Thu Aug 5, 2010
True That, Find a Realtor.
Thats been a dead post for about a year posted in April 2009
Web Reference:  http://www.RandyDodd.net
0 votes
Nicole Medas, , Las Vegas, Las Vegas, NV
Wed Aug 4, 2010
Seek out a Realtor who will do your paperwork for a flat fee. Since you are coming with your own buyer you should be able to work out a reasonable deal.

Nicole Medas
RealtyONE
702-326-4594
NicoleM@RealtyONELV.com
0 votes
Randy Dodd, Agent, Abilene, TX
Wed Aug 4, 2010
Wanted to follow up and see how things turned out for you, Did the deal make any problems
Web Reference:  http://www.RandyDodd.net
0 votes
Tommie Easl…, Agent, Abilene, TX
Fri Jul 9, 2010
Ask for proof of funds and then take that information and both of you go to a title company of your choice
0 votes
Randy Dodd, Agent, Abilene, TX
Sun Jun 21, 2009
How did your sale go Jim? Any Advice or input to help others?
Randy
Rossanna's Realty
2301 Barrow
Abilene Tx 79605
(325) 692-5375
0 votes
Margaret T.…, Agent, Conroe, TX
Sat May 23, 2009
Jinbun77,
I am sure that the person that said do not contact or hire a Realtor felt they were giving you the right advice but in Texas it is incorrect. There are Realtors that will do this for a flat fee as mentioned below by Rob, By the way Rob is in Texas and knows the laws in Texas.
A Real Estate Atty is fine but they will only handle the contract and deed, not the other paper work that you need to protect your self from law suits later,
You need several other forms made out. I could tell you now but you can not access them with out an agent or Realtor so you would still need to contact one.
Please do so. I have often done this type of work for a small fee and I am sure you will find some one near you that will as well.
Margaret
0 votes
Rob Purifoy, Agent, Plano, TX
Sat May 23, 2009
Be wary of any cash deals first off, and I'd go with a somewhat large earnest money deposit I suggest you hire a Realtor for a flat fee (you can add the fee to your sales price, or split fee with buyer) to draw up a contract. This is the best way to do it correctly. I'm in Dallas but I can this for you via email remotely.
Web Reference:  http://www.robpurifoy.info
0 votes
Randy Dodd, Agent, Abilene, TX
Fri May 22, 2009
I agree with some other answers you got, here. If you need help feel free to call Bill or myself at the office.

Randy Dodd
Rosanna's Realty
2301 Barrow Abilene Tx 79605
(325) 692-5275
0 votes
The Hagley G…, Agent, Pleasanton, CA
Sun Apr 26, 2009
I would start by hiring a Realtor to represent you.
Web Reference:  http://www.cindihagley.com
0 votes
Keith Sorem, Agent, Glendale, CA
Sun Apr 26, 2009
J
You need professional representation. Either hire a Realtor or an attorney. Just be careful. You always pay for what you receive.

Good luck.
0 votes
Rob Purifoy, Agent, Plano, TX
Sun Apr 26, 2009
I'm not being biased when I say hire a Realtor to write up the offer and make sure it's all done properly (just for a fee). I've done this before with "friend to friend" transactions, and it's better kept as a business deal.
Web Reference:  http://www.robpurifoy.info
0 votes
Jinbun77, Home Seller, Abilene, TX
Sun Apr 26, 2009
No we have not done a contract yet. I told them that I wanted to find out the information about the pay off, etc. before anything goes forward. Yes, they do have the necessary funds so I am sure of that. I just don't know where to go from here!
0 votes
Chris Tesch, Agent, College Station, TX
Sun Apr 26, 2009
First of all it sounds like you were probably asking too little if they are willing to pay for everything. Something doesn't ring true here.

If you are satisfied that you are getting the true value of the house the first thing you need is a letter verifying funds. Have they given you a contract?
Web Reference:  http://www.ChrisTesch.com
0 votes
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