Help! We found a FSBO house

[JonesinIndiana]

but we have a realtor and we have a contract on a house!

 

Here's the deal, the #1 house we are under contract on needs $15,000 to update heat and put in central ac. We know that going in and it's been nagging on us because the seller hasn't budged on the price much. The seller has come down $5000 from her asking price in a year. Yes, a year! We know she and a previous buyer were a few thousand apart regarding repairs and they couldn't come to an agreement, so it fell thru. On our inspection we found some roof issues, bathroom air vents needing rerouted, leak in master bath sink, and garage door opener/ safety issue. We don't think she will come off the price we have agreed upon to help fix those things. (There are a lot of other things that need addressing but those are the ones that are critical.) We are waiting on the water quality inspection and the pest inspection. We can get our $500 deposit back and just be out the inspection fees, which are about $500.

 

We drove by the FSBO and called and saw it tonight. (The house is empty. An elderly couple owns it, but they live in an assisted living place and their son in law shows it. ) It is really everything we want. It has more land than #1 house and that was the main thing we were compromising on with that house. It even has a shed with electric that we could make into a scrapbook and school room!! >SQUEEL<

 

So, if we do get the FSBO house, what should we do about our realtor? DH and I were discussing a monetary gift, but we weren't sure how much. The FSBO people don't have anyone to do the paperwork and other than our realtor, we don't either.

 

What should we do? Anyone BTDT? Help!

[zoobie]

The FSBO houses here offer a percentage to buyers' agents, usually 1% lower but it's listed in the ad. Do you have a contract with your realtor? If you don't, and you don't use your agent to assist with the sale, you don't owe her anything. She didn't find you the house. If she helps, you can put her commission in the offer or pay her a flat fee yourself.

[milovany]

Do you feel obligated to the realtor for house #1? I understand that -- she did do some work for you and it isn't her fault you're backing out. I would gift her some cash out of those funds.

[BusyMom5]

If you want the FSBO house, call your local title company to get started.  We have bought several properties, never going thru real estate agents.  I would walk away from the other house, and put an offer on the one you want.  If you feel obligated to your agent, maybe give a monetary offer.  Also realize that it is part of the job- not everyone will buy a house with their agent- it's part of her job that deals fall thru- sellers or buyers change their minds, financing falls thru, ect.  It happens, and any agent should know that. 

 

Good luck!

[Suzanne in ABQ]

Get a real estate attorney.  If you are not under a buyer's agent contract with the agent, then you aren't legally obligated to pay her for not finding you a house.  If anything, the FSBO seller could pull her into the deal, and pay her to help, but he doesn't have to.  

 

If you don't want house #1, regardless of whether you purchase the FSBO, you should back out of the deal.  It sounds like you have plenty of reasons.  People do it all the time.  No reason to wait for the other inspections, either.  

 

Start with a lawyer.  And, get an inspection on the FSBO house.

[catz]

I sold a house FSBO. I hired a realtor for a flat fee to help. The buyers ended up working with a realtor too. If the realtor has been good to you, I would consider asking he/she to help buy a FSBO. I would reject house one whether or not you had found this other house you are interested in.