Thread: No realtors involved with deal

Got a call today from a potential client and the client stated there are no agents involved with the deal. Just buying the house from a friend.

Was hoping for a little insight from anyone that has been in this kind of situation. Also wondering about liability.

Thanks for your time.

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Originally Posted by John A Duncan

Got a call today from a potential client and the client stated there are no agents involved with the deal. Just buying the house from a friend.

Was hoping for a little insight from anyone that has been in this kind of situation. Also wondering about liability.

Thanks for your time.

No additional liability that I can think of. Have them set up the appointment with the buyer and proceed with the normal inspection. Since the seller is more likely to be present, make sure to remember to only discuss your findings with your client.

Jim,
Great point about no passing the findings on the seller during the inspection.

Thanks

My policy is to not inspect "for sale by owner" properties without an agent involved. It's just too much of a headache for me because nobody is aware of disclosure laws, proper inspection etiquette and they tend to want me to answer all their "real estate transaction" questions.

Prior to me implementing this policy I'd get;

"I didn't know you were going to be here now. You'll have to come back later."

"Yes, I plan on being here for the entire inspection. It's my house."

"I didn't know xyz had to be moved so you could access abc." Then I spend the next hour waiting as things get moved.

"I didn't know a Time of Sale inspection by the city was needed. Aren't all inspections the same?"

"What do you mean you can't give me a value? I thought you were also an appraiser."

"So, what should I make the seller fix?"

No different than any other inspection - that agent is not a party to your contract, nor is the agent a party to the contract between the buyer and the seller ... an agent will have a contract with a buyer or a seller but is not a party to the contract between the buyer and the seller (but agents who misrepresent things can get themselves into a whole heap of trouble).

John,
No big deal.
Get the name and phone # and call seller to explain what you need/want them to do for the inspection and confirm time and estimated duration of inspection.

Suggest that the Buyer engage an attorney to represent them then include with your report a statement suggesting the buyer obtain a Real Estate Attorney to handle/protect their interests in the transaction. That will remove any liability past normal liability that you may incur.

This type of transaction often is a little loosey goosey and can end a friendly relationship. But that is not you concern.

No problem, have done many of FSBO inspections. I inform my client to inform the vendor to ensure clear access to attic, furnace, electrical panel et ceteras. I also let my client know that I would prefer the vendor be home during inspection, which given its a private sale allows me the opportunity to query the vendor on behalf of buyer.

I inspect a lot of FSBO properties. Its no different than any other inspection. The inspection is the same, the reports the same.
As far as talking to or giving the report to the seller goes, it's up to the client.
If the seller wants to stay in the house during the inspection, that's up to them. It IS their house. If it's a FSBO, most (if not all) of the time, the buyer wants the seller to get the report, so they can negotiate any repairs that may be needed. I can't remember the last time a client didn't want the seller to see the report.

Sometimes sellers are real jerks, FSBO or not. Sometimes clients are real jerks! That's just the way it goes. I try to be professional with everyone, and not be a jerk in return. I found that bringing an attitude is counter productive. When training dogs, its best to use a calm assertive demeanor, it works with people too.

I look at FSBO inspections as a way to have 3 hours with a potential client. They see the kind of inspection I do, and hopefully they will want to hire me when they buy their new place (and many do). I don't compromise my client in any way, or alter the way I inspect or report. I just go about doing my job.

I'm doing a FSBO inspection next week. I've done many over the years. I usually, offer advice beyond what I say to a buyer represented by an agent because, I'm the only expert trying to protect their interest.

There are four main reasons (and combinations of these) why a seller goes the FSBO route.
1) They despise real estate agents.
2) They think their little house is a mansion because of all the improvements they've done and they can't find an agent who'll agree
3) They have something to hide
4) Everyone of them wants to save the commission.

In most cases, a buyer should avoid FSBOs. Since all houses have the commissions factored into the appraised values, a buyer is paying extra for a home without benefit of an agent helping them. (I know many of you have low opinions of real estate agents, but we've all seen great agents who provide great service to their clients)

I'm a little surprised that there aren't more FSBOs here in the red hot Denver market, but perhaps, values have inflated to the point where most sellers have a boat load of equity and don't miss the commissions coming out.

Thanks all for the helpful insight.

Originally Posted by Lon Henderson

.........
In most cases, a buyer should avoid FSBOs. Since all houses have the commissions factored into the appraised values, a buyer is paying extra for a home without benefit of an agent helping them. (I know many of you have low opinions of real estate agents, but we've all seen great agents who provide great service to their clients)
...........

There are good agents that focus on the Buyer needs and protection in the purchase process, though I would suggest that the percentage is extremely small. The agent is first and foremost in sales and the point is to sell. Getting a deal done is the end game and most will allow themselves to push the Buyer into making the purchase. Maybe not the poorest deal on behalf of the Buyer but not the best possible either.

When a Buyer deals with a FSBO the playing field is even 1:1. Agents involved it is 3:1 against the Buyer.