Making a First Home Purchase Without a Broker
Hello I am in the market for my first apartment purchase. I have recently found a place I would like to make an offer on but it is for sale by owner and I am unclear as to what protocol is in doing this. Is there a form to download? Is it just verbal? Also…
Hello I am in the market for my first apartment purchase. I have recently found a place I would like to make an offer on but it is for sale by owner and I am unclear as to what protocol is in doing this. Is there a form to download? Is it just verbal? Also I am in need of find an excellent Real Estate lawyer who will help navigate through the process since this is indeed a first time experience. Any advice appreciated.
you dont need a broker if you have a place in mind. furthermore the inital offer is usually in writing; however, it doesnt matter because it’s not binding until the contract by the lawyers.
Thank you all for your posts. This has been quite helpful so far!
Congrats on saving yourself 6% (the traditional broker’s fee that’s typically paid by the purchaser). You do not need a broker (they traditionally work for the seller). You absolutely need a lawyer. I second the recommendation for Howard Brickner.
I bought as a first time buyer from a FSBO without a broker. It worked out fine. Now I am comfortable in negotiations so I was able to do the price negotiation. I did have a lawyer I trusted and I did ask for advice from everyone I knew (friends, coworkers, etc.) who had recently bought in the area. I had to call the seller a few times to arrange things like access to the building for the inspector but no big deal.
I don’t see what service a broker could possibly offer you at this point, if you know what you want to offer for the apartment. Try to figure out if your offer is in the reasonable range for similar properties (people here can tell you which websites to use for comps).
Assuming you are making an offer contingent on financing, a pre-qual letter from a mortgage broker or bank would be useful to include (thus showing that you are likely to be able to obtain financing relatively easily).
Make an offer via e-mail or verbal, doesn’t matter. The sellers may ask you to fill out an “offer sheet” that they copied off one of the real estate brokers websites which will ask for your offer, your downpayment, other financial info. Or they may ask for nothing.
Once the offer is accepted, they will need to have their lawyer draw up the contract which your lawyer will have to review, you will sign it, put down some good faith money, and then you will have a contract. Make sure you have an experienced lawyer who throws in all the contingencies to break the contract.
i bought from a FSBO without a broker, worked out just fine. mostly relied on my attorney and the banks mortgage people. of course, seller was good too, which helped because banks ask for tons of information, especially from coops.
can’t say enough great things about attorney Howard Brickner. We just closed with him as our guide, and we purchased without a broker. He’s fantastic.
Don’t buy yet. Wait a few years. Stock market will crash again any day now. Home prices will plunge again.
***Bid half off peak comps***
Doing deals without good brokers is like doing your taxes and personal legal work without professionals. Caveat Emptor.
At least get a good attorney involved BEFORE you start, along the lines of above.