When you are looking for a new home, you and your family will find listings for all different types of houses.
Most of these houses will be listed by real estate agents. However, every now and then you may come across a home listed for sale by owner (FSBO).
It may seem that by cutting out the real estate agent and buying a property directly from the owner is simplifying the process.
However, buying FSBO can be a little tricky and there are some points that you should keep in mind:
You Can Still Work With Your Buyer’s Agent
Some people might think that finding a FSBO home means that no real estate agents can be involved, however, that is not the case.
In fact, if you do happen to find the home of your dreams and it is listed FSBO, it is recommended that you have your real estate agent reach out to the owners first.
It is probable that your agent can help to facilitate the process and will still get a portion of the commision from the sale of the home.
The Home Itself Is No Different Than If It Were Listed By A Realtor
Buying a home is easily the biggest investment that most people ever make in their lives.
This makes most home buyers very cautious about the whole process. A FSBO home is no different than any other home that is on the market.
Being cautious about buying a home is great, however, there is no need to be worried about a FSBO home being any less than a home that is listed by a real estate agent.
There is nothing wrong with these homes structurally or otherwise, they are just owned by people who would prefer to sell them without the help of a professional real estate agent.
All Real Estate Laws Still Apply
Whether a home is sold FSBO or by a Realtor on behalf of the owners, the real estate laws still apply.
If the law states that the homeowners must disclose certain problems – then they must follow the law and disclose.
Unfortunately, a homeowner that is selling their home FSBO isn’t as familiar with the applicable laws as a real estate agent would be.
Therefore, it is important that you, as a prospective buyer, work with a buying agent who can ensure that all applicable laws are being followed.
Never rush into purchasing a home. Trust your gut. If the situation doesn’t feel right, or if your agent is recommending that you avoid purchasing that particular property, move on. The right home for you and your family could be right around the corner.
The Listing Price Of The Home Might Be Off
One of the main reasons that homeowners choose to sell their home FSBO is because they didn’t agree with the valuation that their prospective selling agent gave.
They may have even tried to work with several agents and rejected all of their opinions about the home’s value.
Therefore, the price they are listing the home for, might be off from the assessed value. Sometimes homeowners will attach a nostalgia value to the home that doesn’t translate to the market.
While we completely understand and respect their motives, it could leave you faced with paying an asking price that is not a fair value of the home.
If you are looking to buy a home, don’t automatically discount those that are listed FSBO. While you should definitely work with a buying agent to ensure the laws are