Everyone knows that if you eliminate the middle man you can save money.
Buying milk directly from the dairy is cheaper than buying milk at the grocery store. Absolutely correct! Does the same logic apply to the most important purchase you will make in your life?
You have heard that if you eliminate the Realtor and deal directly with the seller you'll get a better deal. After all if the seller saves the commission they will pass the savings onto you, right?.
It is only human nature that a seller will want every possible dollar out of their home.
Could you be walking into a sticky spiders web?
Why do sellers want to market their homes alone? To identify all the motivations would require another series.
Let's look at two which could impact you adversely.
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The property is over priced
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There are material defects with the property
The seller may justify his/her price by pointing out upgrades to their property? How do you know those upgrades actually increased the value of the home? An in- ground swimming pool may have cost the seller $30,000.00, but did it increase the value of the home dollar for dollar? A Buyers Agent would take the upgrades into consideration when comparing properties.
Won't the appraisal protect me from overpaying? Generally, that is correct. What will you do when the seller says he/she feels the appraisal is low and won't budge off the agreed upon sale price? This could result in a stalemate between you and the seller.
How will you get negotiations back on track? An experienced Realtor knows how to move this forward working solely in your best interest.
How do you know if the seller is being honest regarding the condition of the property? Would it be important for you to know the basement gets flooded during heavy rain storms?
In Pennsylvania and many states the seller is required by law to prepare a SELLERS DISCLOSURE. The disclosure mandates the seller to reveal to prospective buyers, everything the seller knows about the property. The good - the bad - and the ugly. The disclosure is comprehensive and requires the seller to answer very specific questions for the benefit of the buyer.
When you tour a home with a Realtor in Pennsylvania they supply you with the SELLERS DISCLOSURE. When you tour a home FOR SALE BY OWNER - does the seller voluntarily supply this document to you? If not, should that cause you to wonder why?
It could simply be that the seller does not know it is required by Pennsylvania state law.
Without the SELLERS DISCLOSURE you are not fully informed. How can you structure an offer without knowing the true condition of the property? If the seller is not aware of this legal requirement - how confident are you that the seller knows not to violate your rights?
"Caveat emptor - Let the buyer beware"
It will cost me money if I use a Realtor to negotiate for me. A buyers agent is usually able to negotiate a fee directly with the seller.
A buyers agent does much more then simply negotiate a price.
How much do you know about Real Estate transactions?
Do you know how to protect your own interests?
Are you able to negotiate with the seller from a position of strength?
Can you state your point clearly and make sure the seller knows you won't accept less?
In following installments we will cover more details and pitfalls that can be associated with a Real Estate sale Understanding what goes on in a Real Estate transaction will help you to make an informed decision.
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