House For Sale by Owner?

[Herzig]

After a year of renting out my 1st house, I've decided to list it as For Sale by Owner. After 10 days of showing it, I think I'm going to get my 1st offer tomorrow.

Any Chiefsplanet advice? Thanks!

[Taco John]

I wouldn't recommend offering sex right away.

[Skip Towne]

Why would you ask our advice now? We told you not to rent it out in the first place. Did the renters tear it up?

[Herzig]

Why would you ask our advice now? We told you not to rent it out in the first place. Did the renters tear it up?

No. Actually they left it very clean. I had to do very little to get it back in "Herzig" shape. I've just had a hard time finding someone I trust to rent it out to. Everyone smokes, has 3 dogs, 2 cats, a 27 foot mobile home they want to park on the side of the house, etc.

It was totally worth it to me to rent it out for even a year. I bought it for in 2001 for 88K and now I'm asking 150K for it. That's almost a 60% increase in value in 4 years. 15% a year is quite a return on your money. In fact, I really hate to sell it now, but it was definitely worth it to hang on to it for another year. I would have only asked 135K last summer.

I've just never sold a house before, so I would like some advice from those that have.

[jjjayb]

Sell your neighbors house instead and make 100% profit.

[chagrin]

Lie, deny and demand proof

[seclark]

don't mention all those decomposing bodies under the kitchen floor unless they ask about the smell.
sec

[Swanman]

No. Actually they left it very clean. I had to do very little to get it back in "Herzig" shape. I've just had a hard time finding someone I trust to rent it out to. Everyone smokes, has 3 dogs, 2 cats, a 27 foot mobile home they want to park on the side of the house, etc.

It was totally worth it to me to rent it out for even a year. I bought it for in 2001 for 88K and now I'm asking 150K for it. That's almost a 60% increase in value in 4 years. 15% a year is quite a return on your money. In fact, I really hate to sell it now, but it was definitely worth it to hang on to it for another year. I would have only asked 135K last summer.

I've just never sold a house before, so I would like some advice from those that have.

As long as you're getting the price you want, there's not a ton to worry about, especially if it's just a house you own on the side, and not your primary residence (you won't have to worry about finding a new place to live). The only two things I can think of is that the buyer will probably do a home inspection (if they're smart) so that may bring up some things that need to be fixed up. The main thing is to have a financing contingency in the contract that states the buyer needs to obtain financing by x date. Also, you might want to consider placing in the contingency that the buyer needs to put down at least 5-10% (don't do a no down-payment loan). The reason I say that is my buddy sold his house in Atlanta recently and there was a hiccup in the deal because the buyer was doing a no down-payment loan and the house was appraised for $2,000 less than the sale price which caused a problem with the bank because the amount they were lending (because of no down-payment) was more than the appraised value of the home.

[StcChief]

Do some research online.
Get standard house contract review.

Definitely get downpayment. 5% minimum.
If the deal falls thru you got something for your time invested in the buyer.

Be prepared for appraisal and things to fix to close the deal.

Piece of mind on deal talk to your lawyer when buyers deal gets presented if any doubt.

Buyers agent may come in and try to get a piece of the action too.

[Iowanian]

You can either get a realtor to do the paperwork for a flat fee, or hire an attorney. I think you could get a realtor to take care of it for 1500...which is much better than losing 7%. A good attorney can do it, and I don't know what kind of money that would cost.

With the offer, ask them to put down 1k in earnest money.

My advice is to do one of the above.

[Herzig]

You can either get a realtor to do the paperwork for a flat fee, or hire an attorney. I think you could get a realtor to take care of it for 1500...which is much better than losing 7%. A good attorney can do it, and I don't know what kind of money that would cost.

With the offer, ask them to put down 1k in earnest money.

My advice is to do one of the above.

I've heard that all you have to get is a written agreement to buy. The title company can write up the contract for you or you can get one at Office Max/Depot or Kinko's for $20.

I do not really want a realtor involved. 7% of 150K is over 10K!!! Screw that. I see what you're saying though.

[Herzig]

As long as you're getting the price you want, there's not a ton to worry about, especially if it's just a house you own on the side, and not your primary residence (you won't have to worry about finding a new place to live). The only two things I can think of is that the buyer will probably do a home inspection (if they're smart) so that may bring up some things that need to be fixed up. The main thing is to have a financing contingency in the contract that states the buyer needs to obtain financing by x date. Also, you might want to consider placing in the contingency that the buyer needs to put down at least 5-10% (don't do a no down-payment loan). The reason I say that is my buddy sold his house in Atlanta recently and there was a hiccup in the deal because the buyer was doing a no down-payment loan and the house was appraised for $2,000 less than the sale price which caused a problem with the bank because the amount they were lending (because of no down-payment) was more than the appraised value of the home.

Thanks! Good points that I have pondered a little. The market here keeps going up, up, up...so much so, I've worried a little about "comps" on appraisals.

[Iowanian]

I don't know.
I'm in the process of selling a house right now(closing tomorrow) and there can be ALOT of BS that comes up. Appraisals from their lender, inspections, Turmite, discolure statements....

Get them to sign a document that accepts the house "as is" with the offer, get some money to hold the house(not down payment...but enough to make it worth your time if they back out for no reason) and limit time for financing. Let them know you're going to keep showing it, until you have a down payment in your hand.

You going to write up the deed yourself?

The realtor gets that comission if you have the house listed. For a flat rate, many of them will take care of the paperwork and closing.....like 1500, instead of the %.

You do what you want, but spending 1500 on an attorney or realtor could end up pretty "cheap" in the long term.

Good luck.

[Herzig]

Why would you ask our advice now? We told you not to rent it out in the first place. Did the renters tear it up?

I love advice, but I would be foolish to listen to every bit of advice I got here. I do appreciate people's opinions here though(even yours ROFL )

[Herzig]

I don't know.
I'm in the process of selling a house right now(closing tomorrow) and there can be ALOT of BS that comes up. Appraisals from their lender, inspections, Turmite, discolure statements....Get them to sign a document that accepts the house "as is" with the offer.

You going to write up the deed yourself?

The realtor gets that comission if you have the house listed. For a flat rate, many of them will take care of the paperwork and closing.....like 1500, instead of the %.

You do what you want, but spending 1500 on an attorney or realtor could end up pretty "cheap" in the long term.

Good luck.

I don't have it listed. I did buy my current house "For Sale by Owner", so I have a little experience with it. My sister got an attorney to do hers for $200. Good points though. I will do the "as is"...it's not very old and there's little that's wrong with the house, so that should't be much of an issue. Thanks for the advice :thumb:

[Iowanian]

I had bought an old, beat to sh!t house 5 years ago, and spent about 3 remodeling it from the foundation(not inlcuded) up....the market has gotten tough in my area with the market flooded with houses....and it wasn't getting much attention.

I spent under 1k on some shudders for the front, new vinyl railings on the front porch and some post caps and wraps...and had an offer within 2 weeks.

Curb appeal....

Good luck..it sounds like you're on top of things.

[DeepPurple]

Here's my experience, I sold a home by owner in Pensacola, Florida in 1978, I purchased the home new from a builder ten months earlier in 1977 for $44,500. The buyer didn't ask for an inspection since the home was imaculate and still looked almost new and I had a termite gurantee and a copy of the survey from the year before. There wasn't much time for equity so I didn't want a realtor, I priced the home at $49,900. I owed about $40,000 on the loan, the buyer asked if he could assume my loan, I said no problem as long as you'll qualify in your name, I didn't want to be liable in case he defaulted later. He had good income, so it was no problem, we went by the mortgage company and he filled out the paperwork to put the loan in his name. I picked up a blank real estate sales contract from a office supply store and the two of us went to the title company where ten months earlier I had closing with the builder. I asked for the woman who had handled my previous closing. She came out and we explained to her what we were doing. We filled out the contract with her help, with $10K payable to me and for the buyer to assume my loan. The home was to be sold as is, no inspection. We both signed the contract and we had closing at the title company 30 days later with no problems.

[bogie]

If you kept it, would the rent cover your mortgage payment?

[Herzig]

If you kept it, would the rent cover your mortgage payment?

Yes. The mortgage, escrow, and taxes is $681 a month. I've been renting it out for $875 a month.

[KChiefsQT]

Yes. The mortgage, escrow, and taxes is $681 a month. I've been renting it out for $875 a month.
keep it and wait a couple years... it'll go up even more.
$875.00??? Shit I'm living in the wrong part of the country!!!!!!!!! :banghead:

[bogie]

Yes. The mortgage, escrow, and taxes is $681 a month. I've been renting it out for $875 a month.

Don't forget those nasty taxes you'll have to pay on the profit you make. Personally, I wouldn't sell it. 15% return on your money is better than most any other investments you could make. The housing market may alter, but I don't believe it will drop below what you gave for it two years ago. I believe realestate is and will remain a solid investment. Just my opinion.

[bogie]

keep it and wait a couple years... it'll go up even more.
$875.00??? Shit I'm living in the wrong part of the country!!!!!!!!! :banghead:

Yes we are.

[Herzig]

Don't forget those nasty taxes you'll have to pay on the profit you make. Personally, I wouldn't sell it. 15% return on your money is better than most any other investments you could make. The housing market may alter, but I don't believe it will drop below what you gave for it two years ago. I believe realestate is and will remain a solid investment. Just my opinion.

I won't have to pay capital gains tax on it. I researched this before I rented it out last year.

Because it was my primary residence for at least 2 years(I lived there 3), if I sell it and it was my primary residence for 2 of the last 5 years, I do not have to pay capital gains tax. I would have 2 years to go if I decided to keep it. My problem is finding someone that won't tear it up. It's a nice house.

Here's the Infotube.com ad...

http://infotube.net/search_detail.php?u=CHIEF71&photo=1&Adnumber=128195

[Dave Lane]

Buy my rental house! 4 bedroom rehabbed only $39,500! Think how much it might go up! ROFL

Dave

[Skip Towne]

I won't have to pay capital gains tax on it. I researched this before I rented it out last year.

Because it was my primary residence for at least 2 years(I lived there 3), if I sell it and it was my primary residence for 2 of the last 5 years, I do not have to pay capital gains tax. I would have 2 years to go if I decided to keep it. My problem is finding someone that won't tear it up. It's a nice house.

Here's the Infotube.com ad...

http://infotube.net/search_detail.php?u=CHIEF71&photo=1&Adnumber=128195
It really is a nice house. Too nice to rent. Sell it and buy a duplex if you want to be in that business. A duplex doesn't have nearly as far to fall as that house does. And a duplex would be a great investment in that housing market. It would be nearly impossible to make a mistake.

[bogie]

Wow it is a nice house. How long has it been empty?

[WestCoastReggie]

After a year of renting out my 1st house, I've decided to list it as For Sale by Owner. After 10 days of showing it, I think I'm going to get my 1st offer tomorrow.

Any Chiefsplanet advice? Thanks!

You live in NW AR? I know some people that live in Fayetteville.

[Halfcan]

You don't need a Realtor or an attorney if you have a willing and able buyer. The title company of your choice will handle the contract. Beware though, since you don't know what your doing, a Realtor could end up saving you time and money in the long run.

[Taco John]

I think after the third showing is a good time to offer sex.

[Rausch]

I think after the third showing is a good time to offer sex.
He's selling in Arkansas, not San Fran....

[luv]

keep it and wait a couple years... it'll go up even more.
$875.00??? Shit I'm living in the wrong part of the country!!!!!!!!! :banghead:
Cost of living may be lower here, but so are the salaries.

[KChiefsQT]

Cost of living may be lower here, but so are the salaries.
I know... I was just talking about that with a buddy from Missouri today. Said something like he was making 4.00/hr bartending.

[luv]

I know... I was just talking about that with a buddy from Missouri today. Said something like he was making 4.00/hr bartending.
Okay, that's really low. But, if he's any good, he should be raking it in on tips.

[Rausch]

Okay, that's really low. But, if he's any good, he should be raking it in on tips.


Not in that town...

[KChiefsQT]

Okay, that's really low. But, if he's any good, he should be raking it in on tips.
yeah... still. $4.00/hr????? Thats like pointing in your face and laughing at you. I made more than that when I walked neighborhood dogs when I was 10. It would just piss me off, that's all.

[luv]

yeah... still. $4.00/hr????? Thats like pointing in your face and laughing at you. I made more than that when I walked neighborhood dogs when I was 10. It would just piss me off, that's all.
Waitressing is the same way. Their wages are lower than minimum wage, but they have to include tips as part of their income. I definitely wouldn't want to do it.

[Rausch]

Waitressing is the same way. Their wages are lower than minimum wage, but they have to include tips as part of their income. I definitely wouldn't want to do it.


If you rely on the generosity of others for a living you're an asshole.

There's no two ways about it....