Are all For sale by owners a good deal?

For Sale By Owner homes are on the rise as people seek to save money while they are selling their homes. While FSBO’s are very attractive from the seller’s perspective, they may not always be for the buyer. The following are some considerations that you may want to take in account when you see a For Sale By Owner property in your desired neighborhoods.

Generally speaking buying a FSBO property is a risky move. Although the seller thinks they are saving themselves, and you, money by leaving real estate agents out of the mix, sellers actually end up with less money compared to what they would net by using a real estate agent. From the buyer’s perspective, you could be facing some real risks by purchasing a FSBO home.

The first major issue is disclosure. Although FSBO sellers are bound by the same legal guidelines as real estate agents, they may not always tell the truth about a property. Once you buy the property, you may be stuck with structural issues you didn’t anticipate and have to go through a legal battle in order to prove that the seller knew about these issues before hand and didn’t disclose them. One way to avoid this is to have a contingency that you will not buy the property unless there is a complete inspection.

Another major problem with buying a FSBO home is that these homes are typically priced a lot higher than other homes on the market. FSBO sellers are trying to get the most that they can for their home and without a professional real estate agent’s advice they may price it at a price much more than comparable properties in the area. By getting access to the local MLS, you can see how much homes sold for in the area.

If you decide to go through with buying a FSBO property, there are a few negotiation tactics you can use to be sure you are getting the best deal. Besides using the tips above, you should look to close quickly and easily with a property. Most FSBOs have been on the market for a while and the sellers are looking to close quickly. Although you shouldn’t neglect the inspection, anything else you can do to speed the process will be appreciated.

Since the owner isn’t an agent, they can be offended by particular questions about the house. Don’t make negative comments when you are viewing the house and rely on the inspection to show you the truth about the home. It’s hard to get a good deal if the owner doesn’t want to work with you.

When you purchase a FSBO home, be sure to use the services of a buying agent. Although the seller is forgoing the expert opinion of a real estate professional, it doesn’t mean that you have to. As long as you keep the guidelines above in mind when you are buying a FSBO home, you should be safe in your purchase.

About the Author:
Joe Cline writes articles for Austin Texas Realtor. Other articles written by the author related to Cedar Park real estate and Austin real estate can be found on the net.