What to Know About For Sale By Owner Homes

When you are on the hunt to buy a home, you’ll see tons of them on the market. On occasion you might see a home “For Sale by Owner” (FSBO), or even a friend or relative who wants to sell you their house directly.

This could be tempting since there wouldn’t be agents involved, and it would just be a simpler process overall; but this isn’t quite the case. Here’s where buying a FS BO could get tricky.

A lot of sellers work with your agent

Sellers who have a brain already know that buyers are working with an agent, or have been for a long time, and are planning to pay the agent once the home buying process has concluded.

The agents serve as the buyers advisers throughout the process. If you happen to fall in love with a FSBO house, tell your agent and ask them to make the first contact. They will still do what needs to be done, ensuring they get paid in the end, and you have a home.

Don’t think of the home any differently

If you find the home of your dreams, and its FSBO, don’t treat it like it’s less than a house that’s being sold traditionally.

What you want to keep in mind is that you will meet the owner face-to-face. Selling a home is a personal task, more so than selling your car, and just because emotions might run high, don’t let it intimidate you when you meet the seller.

Keep your eye on the prize. Keep your eye on your future possible home.

Laws are laws

FSBO’s still must obey the seller disclosure laws. They are still bound to every other law in real estate. Do your duty and inspect the home, ask for the right repairs to be made, and the home could be yours soon.

One issue with FSBO homes is that the sellers aren’t well versed in the entire process of selling a home. They may pass up parts of the process because they want to do it their way.

This is where you want to trust your agent and their judgement if they have a concern the seller is missing parts of the process. If the agent believes it’s a nice home, but it’s not the one for you, trust them.

Off on price

It’s quite common that homeowners who are selling their own homes aren’t on the same page with price as an agent would be. They value their home so much more than what the market would, simple because they have emotional value incorporated.

Typically they meet with an agent, don’t like the price the agent suggested, and price their home themselves, which is usually too high.

It’s often happened that sellers can’t sell their home by themselves and resort back to an agent for representation.

If you find the home and love it, but the price is off, just move on. There will be more.

Finding a FSBO home doesn’t mean it’s off limits. Just ask your agent to find out the details and arrange to see it. It’s the same opportunity as any other home, just don’t a bit differently. 

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