For Sale by Owner - Deal or No Deal? So, you're looking for a home and you are looking online, and checking out Open Houses and generally getting a feel for what it is that you're looking for when it happens: you find a For Sale by Owner home that has every quality you desire, is listed for a great price, the neighborhood is perfect, and best of all, the Owner seems knowledgeable, honest and forthcoming and will take care of all of the paperwork. You may be thinking that this is the home of your dreams, and you're getting a great deal! SOLD!
Not so fast. I'm not here to tell you not to go through with the purchase of a For Sale by Owner, but I'd love to take a minute to educate you about the pitfalls so you know what to look out for. These days you can get anything off the Internet - you can even get a contract for the purchase of a home off the Internet. Unless you read contracts regularly and are informed regarding the laws concerning the sale of real property, you probably won't know if the contract is slated in the favor of the Seller, in the favor of the Buyer, or is fairly neutral. Do you know which fees here in Maryland are customarily paid for by the Seller, and which fees are paid for by the Buyer? The Seller may not know the answers to these questions (although she may tell you she does). The Seller may not even fully understand the contract he is handing to you.
Do you know the laws here in Maryland regarding lead paint? Does the Seller? Can you trust what the Seller has to say regarding this matter? Do you know the laws regarding Disclosures? Did you even realize that there were laws regarding disclosures? There are, and here in Maryland they are very specific. The Seller must sign the Disclosures and the Buyer must review them and sign an acknowledgement prior to signing the contract. As a Buyer, who will you trust to explain these laws to you? And what do the Disclosures mean?
What about Inclusions and Exclusions? Here in Maryland, chattel is supposed to stay with the property. Do you know what chattel is? What if there's a light fixture that's a family heirloom? The Seller may decide to take it and not think twice about not replacing it - how do you handle that scenario?
And what about that fourth bedroom in the attic? Looks like a fourth bedroom, feels like a fourth bedroom, and the Seller will tell you all the reasons why it is a fourth bedroom. The fact remains that a For Sale by Owner Seller can say whatever they want about a property, whether it is factual or not.
So - is that For Sale by Owner Home really a Deal? Or will you end up paying for it in the end? Dream home or not, get educated, and get good advice. If you love the home, there is nothing stopping you from getting a Realtor and being represented in the purchase. The Seller may pay the fee. If the Seller refuses - you might want to ask yourself why? It may be in your best interest to simply say ‘No Deal' and keep looking.
For Sale by Owner Photo courtesy of: http://www.flickr.com/photos/thetruthabout/
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