Most people think that homes for sale by owners (FSBO) can save them amount of money because they don’t need to pay for the real estate commission. They also believe they can get a better deal during the home buying process. Unluckily, this is not the case and if you want to know more, read the following reasons;
Reason #1 – Sellers using FSBO just want to save themselves from the real estate commission
This is the reason why they sell their house without hiring an agent. However, this does not mean that these sellers removed the price intended for the agent’s commission. This simply means that they should not pay for the agent’s commission and the commission will go to them.
Reason #2 – Homes for sale by owners are overpriced
This is due to the fact that they do not base their prices according to the latest housing prices in the market. They are the one who put prices to their homes. However, they have also an idea about the current pricing in the market but they don’t usually follow it.
Reason #3 – Having no real estate agent is critical
It is very dangerous when you do not have a real estate agent when buying a home. However, even though you do not have an agent, you can hire a real estate attorney who can help you review the contract in your behalf. When you purchase a home that is listed, the commission is being paid by the seller on the transaction. However, when considering FSBO homes, you do not have a real estate agent paid by the seller that could review the contract or perhaps to answer many queries. The fees that you pay for the real estate attorney, is very expensive.
Reason #4 – You will directly negotiate with the sellers
You have to negotiate to the seller directly when you want to buy FSBO homes because there is no real estate agent involve. If you push over during the transaction, tendency is, you will have to pay more. However, if you are a hard-headed negotiator, you will end up quarreling with the seller and in the end, you will both lose.
Reason #5 – The appraisal will not come in
When the buyer and the seller have knowledge of the actual price, the contract selling price may be higher than the current market value. In that case, the appraisal that comes in is very low and you both need to renegotiate it to the lowest price. You can as well provide more cash in order to close the gap, or perhaps this could end into cancellation of the contract although you have devoted more time and money into it.
Reason #6 – Buyers don’t take it seriously
Most homes for sale by owners are not taken seriously. Most owners are just testing how to sale their homes on their own way and they are not flexible on their price.
However, if you think you are not comfortable buying homes without an agent, hire one. This is one way to make sure you’re not disappointed facing and negotiating with the sellers.