Should You Buy a FSBO Home?

 FSBOs offer some great opportunities to get a bargain price, but also some risks.  National Association of REALTORS® research shows that the difference between asking price and selling price for FSBO sales is about twice that of homes sold through a real estate agent.  In 2006, the difference in median purchase price was more than 15 percent.   It is the buyer, not the seller, who saves the commission - and then some.  But unless you really know what you are doing, you will need a real estate professional in your corner.

 There are two ways to buy a FSBO through a REALTOR®.

 Enter into an Exclusive Buyer's Agreement with a REALTOR®.  That means you, the buyer, agree to pay the commission.  When your agent finds the FSBO that you want to purchase, ask him/her to negotiate for the seller to pay the commission, or reduce the selling price accordingly.  The agreement provides that any commission paid by any other party is deducted from your commission obligation.

 Usually a FSBO seller will "work with an agent."  That means that if the agent brings a buyer, the seller will enter into Single Party  agreement.  Because there is no Listing Agency involved, the seller pays only one half the customary commission, usually about 3 percent

  Savvy investors watch the FSBO ads carefully, submit low offers, and often buy at a bargain price.  Ironically, when they are ready to sell they are likely list with an agent, for a quicker sale at a better price, even after paying a commission.  A FSBO can be a good way to buy a home, if you are careful.

For more information go to:  www.OakhurstRealEstate.info/news.html