I last talked about hiring the correct pros to get your deal done. Often in a FSBO purchase I am the only paid professional involved. I frequently see the result of buyers trying to do what they can't do. They usually regret it in the end. Now, I'll go into some more detail.
Buying a home is a complicated process and no one should try it alone. What does the average person know about negotiating a purchase (offers, counter offers etc.)? And what is the real value of the home? Do you expect a layperson to know? That might require an appraier to determine.
Where do you find a knowledgeable mortgage person? Your cousin's neighbor's step sister is probably not the best choice. Should you shop and compare? What is a good interest rate?
Here's the big one (of course I'm biased); inspections. Do you have an inspection clause in your offer? Do you even need an inspection? How do you translate an inspection report? What should be negotiated and what is accepted as normal wear and tear? What about radon? lead? asbestos? mold?
Let's not forget the legal questions a buyer encounters. Is the bank's attorney working for you? Do you need to hire someone else? Do you understand the fine print on that contract? What's this about title insurance? Why buy a second policy if the bank made me buy one already.
As a real estate professional you know the answers to these questions, but a buyer may not. And they shouldn't have to. All they need is a team of professionals working for them; their "advocates". The starting point for assembling a team? An agent. They have access to all of the assorted pros needed. They know where to find the answers if they don't know them. They do this every day.
When people ask me for advice about buying real estate I always give them the same answer. Go find a good agent. Then work with that agent to assemble your team of advocates. Don't try to do it alone. You will most likely fail.
Remember, you don't know what you don't know. Set yourself up to succeed. It just makes sense.
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