For Sale by Owners & VA Loan
Entry only listings, are often FOR SALE BY OWNERS (FISBO’S). The main issue is not the property. It is the seller. They may think they know the process, law, and how to close a property, however, there is no way to really know, if the seller is capable or not, unless they have a track record of doing real estate.
- Unless the seller is in the Real Estate business, the buyer agent, will often have to do both the buyer’s side of the transaction, & the sellers.
- The buyers agent will need the full cooperation of the seller.
- I now require the seller (FISBO) to have their own attorney , someone knowledgeable about real estate, knows the business, and can advise and guide the seller. It is as conflict of interest, for the buyer attorney to represent both parties.
You do not want to get a month or two into a transaction, and learn that the seller, will not, can not, or refuses, to do something that the lender requires, and that is routine to a real estate transaction. These items need to be done by the close;
- Final oil reading. Oil in the oil tank is the personal property of the seller. An oil service company has to come to the property and estimate the oil in the tank, and it’s value. This $ amount will be reflected on the closing
- Water & sewer municipal lien certificate. If the house has town water or town sewer. The list agent or seller, will pay a small fee, to have the town produce a certificate, saying that the bill is current & there are no liens, do
to unpaid water or sewer bills.
- CO2 Certificate. The municipal Fire Department will inspect the smoke/fire detectors & carbon monoxide detectors, for a fee, & issue a CO2 Certificate.
- Title V, or Certificate of Compliance. If there is a septic system, it will need to be inspected less than two years before the sale. A Certificate of Compliance is for a new septic system, and can be good for either two, or
- three years, if it is pumped in year two.
Title work, if there are liens or issues with the property line, or deed. You will need the cooperation of the seller. In this situation, the seller will need a good Real Estate Attorney, to sort them out.
Do not let this discourage you from looking at FISBO’s, just ask the right questions, and make sure to verify the answers. Real Estate Transactions are built on trust between the buyer and seller. These relationships take work by both parties, to make a deal close.