Ever drive through a beautiful neighborhood and see the home of your dreams For Sale By Owner (FSBO)? What's the risk to you when buying a FSBO? Aren't you getting a better deal because you don't have to deal with those pesky real estate agents?
A friend bought a house 7 years ago off a FSBO sign. She did not have a buyer's agent represent her. The transaction seemed smooth and effortless. The Seller was so friendly and informative. The Seller disclosed that there was a structural repair and even gave her a picture showing the repair being completed.
Fast-forward to 7 years later. They've loved living in the home, but it's time to sell and move on. They list their home through me and truthfully fill out the seller's disclosure forms, indicating there was a structural repair but that they haven't had a problem since they moved in. We receive and accept an offer and move forward with the sale.
The buyers have an inspector come in who expresses concern about the structural repair. What repairs were made? Was there a permit pulled to perform the structural repairs? Who was the structural engineer? After further investigation at the paperwork given to my friend on the structural repair, there is no structural engineer information, just a grainy photo with a date and hand-written account of the repairs made. A permit was never acquired. The county had no record of the structural repair. The previous sellers are unreachable by phone. My seller is stuck paying for a structural engineer to come out to the house and certify that the home is now structurally sound. Luckily, the structural engineer was able to certify the structure... Whew!
The good news is that the structural repairs were completed properly (even if not exactly legally)... but what if they hadn't been? My friend would have been stuck with a home with serious structural problems because they didn't have representation when they purchased it, and did not know the questions to ask.
What if the home is listed through an agent? Is it okay to buy the home off the listing agent's sign? Of course, but remember, the seller probably has an agency agreement with the listing agent, therefore making you a customer of the transaction. That means the listing agent cannot advise you on the purchase of the home; they are there to look out for the best interests of the seller!
With that being said, remember, it is usually the seller who is paying for the listing agent and the buyer's agent. Why not take advantage of that fact and have a buyer's agent in your corner?
Just food for thought! It's a jungle out there... make sure you have a "Wolfe" in your corner!
Take care,
Deanna Wolfe, Denver Real Estate Professional
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