Real Estate Blog - Five Biggest Mistakes Buyers make when buying from FSBO

Home : Blogs : GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES : Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at ReMax Centre Realtors.

Five Biggest Mistakes Buyers make when buying from FSBO

1. Being unrepresented. Sellers may be experienced and may have sold a house before or may be investors or attorneys. Do you have experience buying houses?. You may have bought a house 10 years ago, but laws may have changed. You might want to ask an attorney or buyer's agent to help you with the transaction.

2. Making the deposit check out to the seller. How will you be protected if the seller cashes the check and you do not get approved for the mortgage and seller refuses to return the deposit.? Your attorney or agent wil guide you about the deposit check.

3.You might not know what the homes are selling for and may offer more that what it is worth. an agent will help you with the comparable sales in the area. you can probably look up some sites on the interent, but some of them are not accurate.An agent has upto date information. If you think you are saving buying from FSBO , you might want to think again.The FSBO is probably trying to save the commission.Both of you are going after the same savings.

4.You might feel awkward negotiating and making a low offer or offending the seller. The agent can do this on your behalf.If you have a buyer's agent you can negotiate the fees for buying 'sale by owner,' in advance with the agent ,

5. Failing to have contingencies like inspections, appraisals and obtaining the mortgage in the contract.Failing to ask for seller's disclosure is a mistake as well.

If you know the market well, if you are an attorney yourself or will use an attorney you might get some good deals , if not be careful . Remember BUYER BEWARE.

Posted by GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES on 09/22/2007 07:37 AM

Comments (12)

home buyers, fsbo

Originally posted at: Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at ReMax Centre Realtors.: Five Biggest Mistakes Buyers make when buying from FSBO

This post has been included in Pennsylvania Information

12 Comments on Five Biggest Mistakes Buyers make when buying from FSBO

SEP

2007

I like to call then "unrepresented sellers" as opposed to FSBO.

Gita, good advice - especially the part about who holds the earnest money. At the onset, you can't even be sure they hold title to the place! And no one is at their best going through a real estate transaction - not just the initial negotiations, but what about inspection repairs and other stuff that comes up? A big part of the agent's job is to be a buffer between the two parties, especially if one or the other is being a jerk.

Denise, I call them unrepresented sellers but I thought of FSBO for localism. Thanks for the reminder.

Patricia, Thanks for the comments. I just heard of a settlement last week where the sellers decided not to sell and did not come to settlement.

NOV

2007

Gita, another thought provoking post. These are good reasons for buyers to use a buyer's agent, even when the seller is unrepresented.

NOV

2007

Rich, Thank you for the comment.Buyers will be at an advantage if they use an agent when dealing with unrepresented sellers. I have sppoken to some sellers who have no idea what they are going to do once a buyer is interested in making an offer.

I would add one more item, not sticking to the contract. It is so easy when you are working with someone face to face to forget the details of the contract and before you know it you have missed a deadline and are out of contract.

NOV

2007

Todd, That is a good point. I agree. Thanks for the reminder.

NOV

2007

Gita, you've created an excellent checklist for buyers. Many think FSBOs may be easier to buy than a listed property but the same technical issues need to be addressed for the buyer's protection. Having buyer representation in all cases is what a buyer needs.

carpe diem! Good advice. That is something that buyers should do at any sale.

NOV

2007

Matthew , Thanks for the comments. Buyers need representation as much as sellers.

Gary, Thanks for the comments. I agree the same issues need to be addressed.

NOV

2007

This is a good way to boil the FSBO issue down for buyers. This can help many and others are probably unchangeable, but at least they have been told. Thanks

Bonner

Thank you for taking the time to comment. Happy Thanks Giving.

This blog does not allow anonymous comments