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FSBOs....Why buyers should have a real estate agent

By
Home Inspector with Miller Home Inspection WA HI Inspector Lic. #209

An old adage says "He who represents himself, has a fool for a client"  As much as this is true in the court room, it also carries into other aspects of our lives. Take the For Sale By Owner (FSBO) method of selling real estate as an example.

In my ten years as an inspector, I have inspected numerous homes that were FSBOs. I can say from this  experience that many times buyers who work without the professional assistance of a real estate agent have put themselves at risk. 

I have had many clients ask the questions that should be posed to a real estate agent. But in the absence of an agent, they think they can turn to their inspector. Questions will range from "Am I paying too much for this house?" to "How do I ask the seller to replace the roof?" I find that many buyers often do not understand the nuances of negotiations, that real estate agent are skilled in.

What also frustrates me is that they are not saving a dime by not using an agent, but they think they are. The truth is the seller is the one saving all the real estate commissions, and the buyer ends up the with the short end of the stick.

An average FSBO inspection starts with the buyer and myself meeting the seller for access to the home. Because the seller and the buyer are both flying by the seat of their pants, no one really knows how the inspection process works. The seller thinks it is a 15 minute process, like an appraisal, and is shocked when I actually perform a real inspection that takes 3 or more hours.

Then there is the difficulty of preserving my clients confidentiality while conducting the inspection in front of the seller. Words have to be chosen carefully when describing defects, so as not to offend the seller, but to fully disclose the condition to the buyer. It is a delicate balance, but most of the time the seller continues to interject excuses for every thing found to minimize the deficiency to the buyer. That is always entertaining, it never changes the facts, and unfortunately wastes a lot of everybody's' time.

At the end of the inspection I go over the report with the buyer and often the buyer will ask advice on how to negotiate the repairs with the seller. Such as how to respond (i.e. verbally, in writing, etc.) Ugh....At this point I know they are ambling blindly towards a possible disaster.
 

I have found that that buyers who use a real estate professional in the purchase of their home routinely fair better than those with no professional guidance.

Comments (6)

Tom and Stephanie Hansson
Cortiers Real Estate - College Station, TX
Hansson and Hansson Real Estate Team
Harold ,well put I wish I could print this and put it into a buyers package, but I think I would get in trouble ( I am new to AR)  I am going to try and get some of the inspectors in our area or College Station to join AR.  I know they have similar issues and more.  Thanks for all the great support.  You are AWSOME
Oct 21, 2007 02:33 AM
Douglas & Elizabeth Lavery
Prudential Homesale Services Group - Elizabethtown, PA

Well put Harold. I would like to put a link to this article in the FSBO section of my website after this paragraph: 
"Those that do sell their home successfully usually accept not only a lower price, but they net less than if they had sold it with a professional qualified real estate agent helping them - especially in an uncertain market with high inventory like today."

 

Oct 21, 2007 02:36 AM
Harold Miller
Miller Home Inspection - Stanwood, WA
Certified Professional Home Inspector
Stephanie, You are more than welcome to print out any of my blog entries if you wish. Thanks for the comment.
Oct 21, 2007 03:06 AM
Harold Miller
Miller Home Inspection - Stanwood, WA
Certified Professional Home Inspector

Douglas and Elizabeth, What you say is so true. Sellers often do not maximize their profits by going FSBO. You are welcome to link the article. Thanks for the comments.

Oct 21, 2007 03:09 AM
Terry Osburn
BHHS|Drysdale Properties - Pleasant Hill, CA
Broker Associate

Harold, Thank you for such a well written article. My I link this to my site?

Oct 21, 2007 03:32 AM
Harold Miller
Miller Home Inspection - Stanwood, WA
Certified Professional Home Inspector
Terry, You (and anyone else) are more than welcome to link to this. Thanks for the comments.
Oct 21, 2007 04:10 AM