TWO ISLAND COLONY STUDIOS FOR SALE BY OWNER

About the For Sale By Owner (FSBO) Process

The FSBO Process

PLEASE NOTE: Since we recently sold #4211 FSBO, we are knowledgeable and experienced with this process.
1. We know first hand that FSBO works very well for both the Seller and the Buyer while at the same time saving both parties a significant amount of money that would otherwise be spent on Realtor Commissions:
  1. Total Realtor Commission is 6% of Purchase Price = 3% to the Buyer's Realtor + 3% to the Seller's Realtor
2. In fact, our asking price is contigingent on a FSBO sale.
  1. We factored into our asking price the commission savings that would be realized by doing such a sale.
The FIRST step in the FSBO process:
The Owner and the Buyer verbally agree on the terms of the Sale (Purchase Price, contingencies, etc.). By having honest, straightforward verbal dialogs with no games or positioning, together we can transparently work out whatever concerns or differences we and the Buyers may have until both parties are completely satisfied with the resulting purchase terms.
The SECOND step in the FSBO process is as follows:
1. We, the Sellers, will complete, date, and sign a standard, Official Hawaii Real Estate Purchase Agreement Contract that reflects the terms to which we have both verbally agreed.
2. We then give this document to you, the Buyers, to study and ultimately sign and date.
3. Of course if there are any discrepancies for either party, then these items are verbally discussed, ultimately clarified, and then reflected in a revised Purchase Agreement Contract.
4. This process continues until BOTH parties agree that the revised Purchase Agreement Contract is 100% satisfactory, at which time we each sign it, date it, and submit it, along with the Buyer's Good Faith Deposit, to the Title and Escrow Company.
The THIRD and FINAL Step in the FSBO process:

The Title and Escrow Company then opens an Escrow Account for this purchase, and proceeds to do all that is legally necessary to officially complete the sale.
1. That is all that is involved in the FSBO process!
If at any point during the above process either we or our Buyers have any questions or concerns, there is an optional "FOURTH" step as follows:
1. We have previously sought the advice of a certain highly recommended, very experienced and reputable Hawaii Real Estate Attorney who would be available to answer all of our questions and, if necessary, even look over our completed Purchase Agreement Contract, in order to confirm that it has been completed properly and is 100% legally sound.
2. Should we employ this Attorney's services, then we, the Sellers, and our Buyers would each pay 1/2 of his Fee, approximately $500 - $600 (i.e. $250 - $300 each), in order for him to be legally bound to represent both of our interests EQUALLY.
3. Once the Attorney has answered all of our questions and/or given his legal approval of our completed, signed, and dated Purchase Agreement Contract, we then submit it, along with the Buyer's Good Faith Deposit, to the Title and Escrow Company and the sale proceeds in their hands as any other normal Property Sale/Purchase.
NOTE: Needing to Utilize an Attorney is highly unlikely:
1. In our experience unless the sale is a very complicated one or has many contingincies.
2. Since the Purchase Agreement Contract is very straightforward and simple to complete.
  1. It is basically a "fill in the blanks and check the boxes" type of form.
  2. Therefore it is highly unlikely either of us would have questions or be incapable of properly completing it.
3. Nonetheless, we, the Sellers, would be more than happy to utilize the services of an Attorney if doing so would ease any concerns our Buyer may have.
It should be noted that as soon as the Purchase Agreement Contract is completed, signed, and dated by both parties:
1. Submitting it, along with the Buyer's Good Faith Deposit, to the Title Company is exactly what a Realtor would have also done had one (or two) been utilized by either (or both) party.
2. In addition, had a Realtor been utilized by either party, after submitting the Purchase Agreement Contract to the Title Company, he or she would have no further responsibilities or involvement with completing the sale.
3. Instead, once the Escrow Account has been opened, the Title and Escrow Company is legally bound and responsible for doing everything necessary to officially and legally complete the sale/purchase.
4. Therefore the Property Sale/Purchase process is identical and ultimately in the hands of the Title and Escrow Company no matter whether the Purchase Agreement Contract had been generated by a Realtor, by the Buyer and Seller together, or by an Attorney.
NOTE, all Realtors provides basically only TWO servicess:
1. A Buyer's Realtor:
  1. Helps the Buyer to locate and identify the ideal property to purchase
  2. Helps the Buyer make an offer on the property by completing a Purchase Agreement Contract (and any future revised versions), and then submitting it to the Seller's Realtor.
2. A Seller's Realtor:
  1. Helps the Seller prepare, advertise, and show their property
  2. Helps the Seller make counter offers by completing all revised Purchase Agreement Contracts until one is accepted by both parties.
3. Once the Realtor has completed the above two services, he/she simply submits the final version of the Purchase Agreement Contract, along with the Buyer's Good Faith Deposit, to the Title and Escrow Company and he/she has no further involement whatsoever with completing the sale/purchase.
In our FSBO particular case:
1. Since you, the Buyers, have already found us, the Sellers, without utilizing any Realtor, completing the Purchase Agreement Contract (and all subsequent revisions) would be the only remaining service that any Realtor involved in our particular sales transaction would have to offer in exchange for a VERY large commission.
2. Therefore there is really no need for a Realtor to be involved in our particular sale.
3. If a professional has to be involved in this transaction, we would much prefer to pay a small fee to a reputable Attorney to look over our Purchase Agreement Contract rather than give a Realtor a large commission!
4. However, we feel very confident and comfortable not involving an Attorney or a Realtor in our sale, but instead just completing the Purchase Agreement Contract (and subsequent revisions) together with our Buyer, and then submitting our final completed, signed, dated copy along with our Buyer's Good Faith Deposit directly to the Title and Escrow Company, thereby officially opening an Escrow Account so that the sale/purchase can officially and legally proceed.
FYI, click here to view the official Hawaii Real Estate Purchase Agreement Contract in pdf.
1. And please feel free to Contact Us if you have any concerns or questions about the FSBO process.