For Sale By Owner: Things to Look Out For

There are a few things to look out for with a for sale by owner property. You might think twice before buying a home that is advertised as for sale by owner.

You have been looking to buy a home and getting frustrated. 

For Sale By Owner

There is not much selection of available homes and when you have written an offer, you are competing with others and have lost out.  You wonder if you should look at homes that are not listed for sale by a realtor, but instead by the owner.  What difference does it really make you ask?  It actually matters a lot. When it comes to buying a home and dealing with all of the paperwork, digging into the home’s history and inspections.  Mistakes can cost home buyers thousands of dollars

For Sale By Owner: Things to Look Out For: Are you sure that the home is really for sale? 

Scams can be found anywhere these days. The real estate industry is no different. Do you know what a proper sales contract looks like?  Moreover, what about what things a contract should include?  Do you know all of the necessary forms required for a sale in Colorado?  Additionally, sellers do not have a Code of Ethics. Realtors do.  That seller might try to take advantage of you.  Who is looking out for your best interest? 

For Sale By Owner: Things to Look Out For, Are you a skilled negotiator? 

There is much to negotiate as a part of a real estate contract.  It is not just about the price.  Additionally, there are the dates that must be agreed up on, the possession and what repairs will be made too.

Are you willing to always have to deal with the homeowner? 

You will have to call them to schedule the inspection, appraisal.  If you would like to go over and get measurements for new carpet you will have to make another call to the owner. Moreover, if you want to take mom and dad to see it when they are visiting…that is another phone call.

You are about to make the largest investment you quite possibly have ever made. 

You want to make sure that the seller is telling you everything you need to know to make a good decision.  Additionally, are you sure that you are getting full disclosure from the seller?  Knowledge is power.  Is this a risk you are willing to take.  Additionally, they might hide key information about the condition or repairs to the property.

For Sale By Owner Things to Look Out For include Money Issues

The main reason the seller usually chooses to sell their home themselves is to save money by not paying agent’s commission. What happens if the seller is having money issues and will not pay for repairs after you spend the money for the inspection?  Is lack of money to pay for things the reason they are trying to save money.  You may not know the answer to that question until it is too late.  The seller may also take the cheap way out when doing the repairs that you have requested. What do you do in that situation?

A real estate transaction is a complicated process. 

When looking at a for sale by owner there are a lot of things to look out for. There are many details that you will have to handle. Mistakes can be costly. A real estate agent can save you frustration, time and money. This is a time that it is wise to leave the details and paperwork to the professional. As the buyer, remember that the services of the real estate agent are not a cost you pay.  Sellers usually pay for both real estate agents. Contact us with questions about how to buy or sell a home.

Should I Sell My Home Myself?

FSBOSome property owners decide to sell their homes themselves to save money on commission. In the real estate world we call this a For Sale By Owner, or FSBO for short.  Do you really end up with more money in your pocket when you sell your home yourself?  According to NAR, National Association of Realtors, the median price of a home sold by a real estate agent last year was $280,000. The median sale price for a “for sale by owner” was $200,000.  So these homeowners could have sold their home for more money. They certainly would have less hassle if they used an agent.

So what are the benefits, other than more money, to working with an agent.

  1. An agent knows the market and can help a seller to set a price for their home that will attract the most buyers.  More buyers means a shorter time period to an offer.
  2. Agent know who to reach out to today’s buyers using up to date marketing and old fashioned marketing that works.
  3. Agents can help with staging advice and refer you to the right service providers so that you home is prepared to excite buyers once they see your home.
  4. An agent can make recommendations to a seller one what improvements might be needed that will pay off in a higher sale price for the home.

Bottom line, Realtors® are professionals that regularly sell homes. Should I Sell My Home Myself? Most homeowners do not have the knowledge to best represent themselves and look out for their best interest in the sale of their home. It is a complicated process and you don’t want to find yourself selling for less than you could. Contact us for help in your next real estate transaction.