Interested in buying a For Sale By Owner?
Properties being sold as For Sale By Owners or (FSBO’s) are more common than you might think – especially in a Seller’s Market. They account for about 8% of the properties currently on the market for sale. So if you’re currently considering purchasing a property you have, or, will likely come across one of these in your search.
Below are 4 things to keep in mind before purchasing one of these properties.
1. Get Agent Representation: Just because the Seller chose not to get representation doesn’t mean you shouldn’t. If you want to ensure the transaction is handled correctly and legally it’s vital that you get a professional to represent you. Market knowledge, proper Contract preparation, access to preferred vendors such as lenders, inspectors and closing attorney are just a few of the benefits of having a real estate professional represent you.
2. Negotiations: FSBO’s are rarely priced correctly. Almost all Sellers believe their property is worth more than it is and almost all Buyers believe a Seller’s property is worth less than it is. This disparity can often become frustratingly evident when dealing with a For Sale By Owner. This is why an Agent is so valuable in these situations. Having a professional negotiator on your side gives you access to real-time property comparable data to help navigate you through the offer and likely counter-offer process to get to the right price and Terms.
3. Home Inspection: An owner may not know that they are legally required to disclose known issues with their property, and that oversight could mean costly repairs for you down the road. A good home inspector can enlighten you on potential problems with the property while you are still in Due Diligence giving you an opportunity to renegotiate or walk away before its to late.
4. Adding Contingencies: Contingencies can allow you a valid way out of a contract should something come up during the Terms of the Agreement, such as hidden issues with the property arising during the inspection, the property not appraising for the sale’s price, or you not being able to acquire a loan. A real estate professional will have the needed expertise to guide you through these Contingencies and other important Contract items such as Exhibits, Amendments, and Special Stipulations. All of which, if crafted correctly, are designed to protect you and your hard earned money.
Contact us for more information on how we can save you time, money, and heart ache by professionally representing you with your next property purchase.