Things to Know About Purchasing a For Sale by Owner Home

Throughout the home-buying process you’ll see tons of homes, mostly listed by real estate agents. But every now and then you might encounter a home listed for sale by owner (FSBO). You may even have a friend or relative who would like to sell you their house directly.

Even though it may seem that buying a FSBO home without involving real estate agents would simplify this process, this isn’t necessarily true. Here are some points to take into account when you’re considering a home for sale by owner.

Most sellers will work with your agentSmart home sellers realize that most buyers work closely using a buyer’s agent for weeks (if not months or years), and they will plan to compensate the buyer’s agent just like any other seller would.

Buyer’s agents act as advisers through the ups and downs of the property search. When a FSBO opportunity crosses your path, ask your agent to make the first contact. More than likely they can still work for you and get paid for their efforts.
You shouldn’t think about the home differently

If you find a great home in a prime location that meets all of your criteria, don’t consider it as any different if it’s listed FSBO as opposed to listed by a real estate agent.

The most important thing to make note of is that you will meet and see the owner face to face. A home sale is more emotional and personal than, say, the sale of a used car or perhaps a piece of furniture. Because of this, seeing the owner might make you uncomfortable.

Make an effort to get past it and keep your eye on the prize: your dream home. Leverage your agent, and be ready to ask for time alone in the house if you need it.

Laws still apply

If the law stipulates that the seller has a duty to disclose problems, inspect the home, or perform any repairs, the FSBO must cooperate.

The issue some sellers have with going solo is that they they aren’t knowledgeable about real estate processes or procedures. Or they would like to get it done their very own way.

Trust your gut as well as your agent’s judgment if you believe the seller is neglecting an obligation or not allowing you to do your due diligence.

Even if the home is great, it might not end up being the right opportunity for you. When it doesn’t feel right, move on.

Pricing could possibly be off

Homeowners who list their home themselves have a tendency to share one thing in common: They reject local agents’ opinions regarding their home’s value. Sellers (FSBO or not) who are unable to emotionally detach from a home or who don’t have a solid plan post-closing sometimes self-sabotage their sale by overpricing.

These sellers typically speak to local agents before they list. But they don’t like the agent’s pricing strategy and would like to give it a stab by themselves.

Sometimes, if they fail to sell solo, they enlist the assistance of an agent, and get the home on the market at the right price. Why? Because when the time comes to get serious, sellers often want representation.

But if you love a house, and the price is off, move on to the next, whether listed by owner or agent.

A home for sale without an an agent isn’t off limits. Ask your agent about the listing, and be open to seeing it and treating it just like any other opportunity you or your agent finds.

A good real estate pro should let you know up front that they could represent you in any sale. Go in with your eyes wide open and are aware that, just like any negotiation, it may or might not work out. Nick & Cindy Davis have worked with several FSBO and assisted our clients in purchasing the home of their dreams. We can help you too. To get started simply click here or you can always call us at 813-300-7116.