Over 93% of the real estate market are homes for sale by agents. Every now and then, you will run into a homeowner looking to sell a home themselves. Is it easier, harder or riskier?
Four Things to Keep in Mind When Choosing to Pursue a FSBO Property.
FSBO: For Sale By Owner
Most Sellers Will Work With An Agent.
Most sellers understand that agents are essential for the home buying and selling process. So if you happen to see a for sale by owner on Zillow or Trulia, it would be wise to pass him off to your agent to contact first. They might be offering a commission for any buyer's agents representing a buyer for their deal.
TIP: Many FSBO are testing the market and not sure if they are going to sell. They just want to see if someone will pay their price.
Let your agent run the comps on the property and figure out the true value before even seeing the property.
Don't Treat the Transaction Differently
Remember there is no agent to buffer emotion. You and your agent will be negotiating directly with the seller. Most people get attached to their homes and might not be realistic when it comes to its renovations and/or upgrades.
Low offers might offend the seller and cause the deal to die quicker. When it comes to negotiations, direct sellers are not experienced. This can be a good thing or a bad thing for buyers looking to purchase a FSBO.
Laws Still Apply
The seller still has a duty to disclose problems, inspect the home, and fix any necessary problems. The FSBO must cooperate or risk being sued – or the deal risks dying.
The biggest problem with a FSBO sale is the lack of knowledge regarding the real estate processes and procedures. Mix a lack of knowledge with stress and you could very well have a recipe for disaster.
Trust your gut and your agent's professional judgment. Especially if you and your representative feel the seller is neglecting his due diligence.
The Price May Be Off
Let's face it, most sellers are not professionals when it comes to pricing a property. They usually go off Zillowmates estimated price and wind up overpricing the property – and over a course of several months lower the price. Unfortunately, a lot of FSBO's are looking to test the market to see what they can get. Some haven't properly planned an exit strategy and can cause a LOT of stress the closer they get to closing.
Sometimes a FSBO will fail to sell solo and choose to list with the help of an agent and get the home on the market for a more realistic price. Sellers often want representation when it's time to get serious.
But if you love a home, and the price is off, move on to the next, whether listed by owner or agent.
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