Is Buying a FSBO Right For You?
During the house hunt, many potential homeowners take an interest in a home that is being offered For Sale By Owner (FSBO). What is the risk to the buyer? These tips will guide you through the decision-making process:
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- The buyer will need to know how to negotiate the asking price. Since the majority of FSBO sellers do not have the experience to set a good market value on their home, their price will likely be too high.
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- There may be a wait time to see the home. Most homeowners have work and other responsibilities and can only show the property at their convenience.
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- Unless you have real estate experience, you will have some unfamiliar responsibilities: making sure you are paying the right price for the property by performing a comparative market analysis, negotiating credits or repairs with the owner after the inspection, finding the right title insurance company, and deciding how much each party will pay during closing.
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- A seller may try to discourage a house hunter from getting a home inspection, stating that their house is in well-maintained condition. Even brand-new houses should be inspected before changing owners, and the seller is required to have a disclosure statement ready for you to read over.
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- Once you make an offer, the owner may want to wait before accepting in hopes they receive a higher offer from someone else. In a scenario like this, and there is no urgent need for them to move, you may have to walk away from the deal.
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- When you are represented by a buyer’s agent, and there is no disclosure in the property listing that the seller will pay buyer agent fees, ask the seller directly or walk away. Your agent has put a great deal of time and effort into the house hunt and deserves proper compensation.
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- Do your own research on the house, make sure the person you have talked with is the actual owner, and proceed with caution. Some scams involve an empty house, FSBO signs, and criminals who will take your money and run, all while posing as the rightful owner.
All said and done, not every seller is going to be dishonest, but the best tip for a potential homebuyer is to ask a RealtorⓇ to represent them. A licensed real estate agent knows all of the ins and outs of purchasing a home and will protect your interest as a home buyer, whether you want a home that is being sold by its owner or one being marketed by another agent. Either way, you will need the experience and knowledge that a real estate agent has to offer.
Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins.
Photo credit: www.smartagents.com
