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So You Want to Buy a For Sale By Owner Home? (FSBO For Short)

By
Real Estate Agent with Realty Pro, Inc. #96851

So You Want to Buy A For Sale By Owner Home

So You Want To Buy A For Sale By Owner Home? (FSBO for short)

The seller will tell you: "Let's skip the Realtor and save both of us a little money, heh?" So He/She puts a sign in the yard. It can't be that hard.

 

 

 


You and the spouse will drive around and drive around Vancouver WA and Clark County and call lots of professional listing agents off of the signs trying to find the perfect home. You might even commit to a knowledgable real estate agent to show you homes, open doors.


So then you and the spouse come driving by...and there's that telltale FSBO sign sticking up in the grass.


You knock on  the door and tour the home, all the while talking and gabbing to the home owner. What a nice person! (That person is listening and garnering mountains of information from your most innocent comments like, "we have a home in Arizona." That tells the FSBO owner...YOU HAVE MONEY TO SPEND ON HIS/HER house!! (An agent has a fidicuary commitment to protect your best interests and doesn't reveal this kind of $$ about you.)


So you want to buy a For Sale By Owner home? (FSBO for short)

 

Should you put your earnest money into escrow?  Will you be able to get it back easily if something goes wrong?  Will it have to go all the way to court to get even some of it back?

How do you know the For Sale By Owner home is priced correctly? Will you be paying way too much?

Did you receive any "Seller's Disclosures" to protect you later if you have to go to court about hidden damage, water under the house, mold or a sewer or sidewalk assessment coming through?

Are you getting a loan? What kind of loan should be the right one for that FSBO home? Will it appraise at price? Will the seller agree to lower their price when it doesn't appraise? What if the seller won't sell at the actual appraisal cost...can you afford to lose the money you paid for the inspection?

Who will negotiate your inspection terms?




HMMMM....WHAT ELSE COULD GO WRONG???


And, about your earnest money....?  


Buyers.....Did you know that
just to walk into a courtroom
will cost you approximately $5-10,000 just to get started?

 
Ah....so many things to wonder since you don't have the protection of a trained real estate professional.
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

Hi there Jill, this is such great advice for those folks who think they can save money and sell it themselves. Always amazes me to see those FSBO signs. What you don't know can get you in big trouble...

May 23, 2014 12:17 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Jill, you bring up so many good points and still just scratching the surface about all the things that can go wrong.

May 23, 2014 09:19 AM
Jill Watts
Realty Pro, Inc. - Vancouver, WA
A Luxury Experience at Every Price Point!

Hi Debb!! So nice to hear from you! Hope your business is going well. All we can really do is for FSBO unrepresented buyers is to try to help them get some or possibly all of their earnest money back. Scary!!!

May 26, 2014 01:40 PM
Jill Watts
Realty Pro, Inc. - Vancouver, WA
A Luxury Experience at Every Price Point!

Nick! Thanks for stopping by! I know that you probably have seen more horror stories than I touched on in this short article.

 

Blessings to your business!

 

May 26, 2014 01:41 PM
Jill Watts
Realty Pro, Inc. - Vancouver, WA
A Luxury Experience at Every Price Point!
I've helped a couple of people who have learned the hard way that FSBO owners just want to save themselves money....they don't care about the buyers. AND...they get to keep some of the earnest money. It's kind of like a little side job they are running with their FSBO sign.
Jun 03, 2014 12:58 PM
Kim Boekholder Utah Real Estate/ PECO
Results Real Estate 801.580.5624 - Draper, UT
Broker Results Real Estate/Leasing Specialist PECO

Great points!  People often forget or don't realize all the things that can go wrong and rarely realize the true work that goes behind the process.  Hope business is going well!! Take care!

Nov 23, 2014 10:58 AM