Not all property transactions involve real estate agents. There are homes that are for sale by owners (FSBO), which means the property is being sold by the homeowner without assistance from an agent or broker. People tend to go this route because they don’t want to pay a realtor a commission fee. That said, this option can end up being more trouble than it’s worth.
FSBO transactions can be unpredictable and put you in difficult situations. Before you move ahead with purchasing an FSBO property, you should consider these challenges and determine if the pros outweigh the cons. You may decide that a realtor’s commission fee is well worth it.
Unfair Listing Prices
Oftentimes, FSBO properties are not listed at the appropriate price. The owners don’t have a realtor with market knowledge who can arrange for a house appraisal to determine the actual house value. As a result, they sometimes end up overvaluing the home and asking for too much.
Negotiation Issues
Issues with negotiating are another challenge of buying from private sellers. Given their attachment to their home, they may struggle to engage in rational negotiations about the home’s actual value. Negotiations can also get messy between two parties with no professional negotiating experience. It’s a practice best left to professionals that know how to communicate with each other to find an outcome that works for everyone.
Large Amounts of Paperwork
There is a ton of paperwork involved in real estate transactions, whether you’re buying or selling a home. Much of this paperwork contains legal and real estate terminology that may be confusing. If you and the private seller go without real estate agents, you’ll both have large amounts of paperwork to contend with.
Undisclosed Problems With the Property
Homeowners don’t always operate under the same ethics as realtors. Despite being legally obligated to tell you, a private seller may opt against informing you about issues with the house. This could include things like roof damage and mould. If they had a realtor, that realtor would understand the legal and ethical obligation to tell you and act accordingly.
Why Work Through a Realtor Instead?
Though there are pros to buying an FSBO property, the cons tend to outweigh them for most people. If you’re thinking about hiring a real estate agent and going the traditional route instead, here are some benefits to consider.
- Realtors are skilled negotiators and can get you a fair deal.
- Realtors can take care of the paperwork and offer professional advice.
- Realtors have connections that can take care of inspections, repairs, and more.
A Realtor Will Help You Navigate Any Purchase
Save yourself the trouble of a private sale by hiring a reliable real estate agent. Whether you’re selling your property, buying a house, or looking for land for building a house, our realtors are here to help. With their extensive knowledge of house sales and expert negotiating skills, our team will ensure that you get the best possible deal when buying or selling your property. To learn more, please don’t hesitate to contact us.Save yourself the trouble of a private sale by hiring a reliable real estate agent. Whether you’re selling your property, buying a house, or looking for land for building a house, our realtors are here to help. With their extensive knowledge of house sales and expert negotiating skills, our team will ensure that you get the best possible deal when buying or selling your property. To learn more, please don’t hesitate to contact us.
