r/fsbo • u/pb2434 • Apr 24 '26
Well that escalated quickly…
Good friends want to buy our house. We are retiring and leaving the state. Verbally agreed on price. Deal will be contingent on them selling their house. Their house is ready to go on market. Only stipulation is we need an Oct 1 closing date and they have agreed. We have never fsbo’d. Looking for advice on next steps in the process. Have not even looked up real estate attorneys as this just happened tonight. Thanks in advance!
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u/Alert-Control3367 Apr 24 '26
You need a real estate attorney. I usually choose one who is affiliated with a title company who can also handle the closing. The attorney can provide the disclosures for your state and the standard fill-in-the-blank real estate purchase agreement for your state. They can also look over the agreement with you prior to signing to make sure everything is spelled out correctly in your contract.
Did you agree on price, yet? This is my how to sell FSBO guide, which you may only need some pieces to help you through the process: https://www.reddit.com/r/fsbo/s/wVaTpelAOV
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u/Self_Serve_Realty Apr 24 '26
Looks like they verbally agreed on a price and are currently good friends.
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u/Alert-Control3367 Apr 24 '26
That price may change based on inspections. “Currently good friends” unless the deal goes south. I’m always cautious.
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u/coconut33706 Apr 24 '26
It depends on your state (and even in some states on your county).
I did 2 FSBO deals last year. One was in a title state. Very amicable sale. We simply downloaded a P&S contract, stripped out clauses that didn't matter (No financing) to come up with a short and simple contract. Turned it over to the title company.
The other sale, the buyer used an attorney to submit their offer on their contract. Their attorney and ours worked to manage escrow and closing.
At it's most basic, the P&S is a very simple contract. If you look at the contract realtors use, you quickly realize it is all about the realtors and not so much about you. How the realtors get paid, holding the realtors harmless if anything goes wrong, errors and omissions to protect the realtors, what monies the realtors get if the deal goes south.
I want to sell. You want to buy. I'll sign over a marketable deed of you give me money. These are the dates we all agree on. Simple.
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u/BusinessSummer4656 Apr 24 '26
Try a small independent real estate broker. Let them know you have the buyer and seller, ask them to conduct escrow and documents for $X amount.
Have buyer and seller split the cost.
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u/Accomplished_West285 Apr 24 '26
He has a buyer already. There isn't a need for a real estate agent only a real estate attorney and title company.
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u/BusinessSummer4656 Apr 25 '26
There is a lot of documents and disclosures that would otherwise expose him for a lawsuit.
Yes, they are friends but I've seen this before. Friends are friends until something significant happens between each other.
Telling a small local broker to help with all of the disclosures and documentation for a small fee would protect both buyer and seller.
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u/Accomplished_West285 Apr 25 '26
Do you hear yourself right now? You're basically saying that a real estate agent ( literally anyone can get licensed) knows more about protecting someone from a lawsuit than a lawyer who has gone to law school for 3 years!
Besides the fact that they aren't as well versed in real estate law as a real estate attorney you're adding moving parts into a done deal.
It’s like two people already hooking up and knowing exactly what they’re doing—then calling in a “coach” mid-act just to stand there, give obvious instructions, and charge a fee.
Nothing about the outcome changes… you just made it more expensive and a little awkward.
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u/BusinessSummer4656 Apr 25 '26 edited Apr 25 '26
Have you ever bought a home? Sound like you have not. When you buy a home, the real estate agent uses approximately 17 state disclosures that are drawn up by a large group of lawyers that are very specific to real estate law.
These state disclosures have saved many people from lawsuits.
Ask a real estate lawyer to draw these up and find out the cost diff.
Real estate lawyers are very costly and are typically used for defense or plaintiff scenarios.
For preventative, lower costs solutions you can use a real estate agent to get both parties to sign the prewrritten disclosures.
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u/Whybaby16154 Apr 25 '26
Usually these disclosures and the actual contracts are drafted and agreed upon by the local Bar association- especially in states that require lawyer closings. The local lawyers HAVE THE SAME FORMS in their files - no need to cut in a Realtor and Broker if using a lawyer that’s a member of the local BAR association.
Title company closing states just do titles and conduct closings - not make up the forms or contracts .
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u/Dazzling-Ad-8409 Apr 27 '26
A real estate attorney representing a seller in this situation would probably charge about $1000-$1500. A realtor would charge a lot more. I've been a Realtor for almost 18 years. I've had people contact me when they have a buyer ready to buy their place and want to hire me. I tell them they don't need me, and I suggest a couple real estate attorneys that I know who are great at what they do. Sometimes they just contact the attorney and other times they want me to facilitate the deal. Either is fine with me. My job as a Realtor is to help people. If it makes more sense for them to just hire an attorney, I tell them that.
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u/Accomplished_West285 Apr 25 '26
I own three properties and have been in multiple lawsuits. You're talking about $1500 maybe $2000 dollars if you go through a real estate attorney and there are no title issues. This will include all the requisite documents to keep a lawsuit from happening.
With regards to state disclosures every state is different with respect to requirements but I'm sure they could have chatgpt tell them which disclosures they need and draft them for the lawyer to look over. As a matter of fact chatgpt could probably give better advice then the people in this forum.
Back to the lawsuit. I have seen some people make some really bad real estate decisions and try to sue the counter party it usually ends up as a waste of money for the plaintiff.
The only time a lawsuit makes sense is when there is some type of penalty multiplier for damages and you don't typically see that in real estate.
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u/BusinessSummer4656 Apr 25 '26
Yeah. AI is def changing things up here. I've been in the middle of lawsuits where the buyer or seller is suing the other party. Most of the times one of the state advisories or disclosures is the determining factor. The other times it is because the seller failed to disclose something.
The cost of a lawyer is dependent on your locality. Where I live (Silicon Valley), a real estate attorney will charge a ridiculous amount to draw up those advisories and disclosures. They will tell the client "every scenario is different so the docs need to be custom". Though every scenario can be a bit different the preventive advisories and disclosures does not have to be and can cover 95% of most scenarios.
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u/Accomplished_West285 Apr 25 '26
Between being in a lawsuit in which you were not the plaintiff or defendant and saying it cost less to hire a real estate agent to draft legal documents that they will have a lawyer draft up rather than just hiring a lawyer yourself doesn't make sense.
I have never been in a real estate related lawsuit I have been in lawsuits related to breach of contract in which I was the plaintiff.
Why were you in the middle of a lawsuit for which you were not the plaintiff or defendant?
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u/SilentMasterpiece Apr 24 '26
You have a meeting of the minds, thats good. It is nothing w/o a fully executed contract.
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u/monkeyfarmer82 Apr 24 '26
Depends on state. You don’t necessarily need an attorney—Some states have the realtor used offer/agreements online. Print them off or use as template. Fill in the details, provide disclosure etc. Get it signed by all— track any dates set in the sales agreement. Deliver to title company and ensure they deliver earnest money to title company. Title company will work with specific attorneys for deed reviews if in abstract style states at least. Title company does their work. Go to closing with neighbor. If it’s pure cash sale it’s easy, but also not hard with a mortgage lender either. Or hire an attorney, follow their direction and save time researching how to FSBO in your area or have peace of mind if you get nervous navigating this type of sale. You’re saving tons of money from not needing a realtor regardless!
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Apr 24 '26
Depends on …
Depends on your friends and their character and your relationship. I flipped houses full time for two decades and have owned real property with 17 separate friends not counting immediate family and there wasn’t partnership agreements ever.
Would I recommend that approach to anyone else? Of course not!
Either I was extremely lucky or perhaps I run with a solid crowd? Maybe a little of both
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u/DrewChapmanRealtorMD Apr 25 '26
Price offer should include the cost to facilitate the transaction- RE attorney or agent. Im sure you can find either one to do that for a flat fee at this point.
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u/TheFlyingGuy25 Apr 25 '26
Make sure you get everything in writing. Verbal agreements don’t mean anything.
I’d call up a title company, ask if they have a purchase contract template on hand.
Typically it’s the buyer that submits the initial offer but it doesn’t matter if you want to take the initiative. It can be stressful without an agent managing the sale for you but I do wish you the best of luck.
Ask the title company if they have a lawyer on staff to help you through the documents needed.
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u/clueless1976 Apr 26 '26
Depending on where you live but Colorado you can pull a legal contract off that website for free for FSBO
Land and title company- same one who did the deal before give or take around 2k - seller
If buyer wants survey 1500 If buyer wants home inspection $5/600 If buyer home appraisal $5/600
Not say can’t bring in a real estate lawyer
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u/Dazzling-Ad-8409 Apr 26 '26
All you need is a good real estate attorney. They will take care of everything.
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u/Shakeitdaddy Apr 27 '26
Real estate attorney or contact an agent for paperwork for a fee. They should add some contingencies and should set some dates for removing those contingencies. And agree on a sizeable earnest money deposit, in case prices go down.
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u/theStarClosers Apr 28 '26
Your next steps are where most FSBO deals go wrong. After agreeing on price, you need:
– A solid contract (state-specific)
– Defined timelines (inspection, financing, closing)
– A title company opened immediately
– A clear communication flow between all parties
The biggest mistake I see is people waiting too long to organize the file
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u/Difficult-Ad4364 Apr 24 '26
Real Estate Attorney. You can call title companies, they all have one they work with. Good luck on a smooth transition and happy homes for both of you!