Buyer Beware: Do You Really Want to Represent Yourself?

By
Real Estate Agent with Cedar Rapids/Iowa City, IA KW Legacy Group S44645

Over the weekend, another agent in my office had posted a scenario that sounded all too familiar.  The buyers had looked at several homes with the agent, including one that was for sale by owner.  The buyers then went back to an open house at the FSBO, this time without their agent, and the for sale by owner convinced the buyers to dump their agent.  The seller stated that the buyers could use their attorney and save $8000...  Since the buyers really liked the house and it was listed at the top of their budget, they decided to write an offer alone.  

 

Here is the problem:  

 

1. The for sale by owner home is grossly over-priced and will likely not appraise even with the $8000.00 discount.  Not to mention that on their listing and at the initial showing with the buyer's agent, the seller agreed to pay for the buyers' agent commission.

2.  The buyer's financing is a USDA loan.  First issue is that with the partial government shutdown, the financing cannot be done at the moment.  Second issue, the property is not located in an area where this type of financing is available.  Now, the buyer needs a co-signer and a down payment to purchase this specific home.

3. The buyer agreed to no inspections and accepted a pre-listing inspection completed by the seller over 2 years ago when they initially tried to sell with an agent. All because the seller stated that they were trying to help the buyers "save money" by not having to pay for their own inspections.

danger sign

 

There are so many things that could possibly go wrong in this scenario.  Even if it does appraise somehow, the buyer has to come up with down payment money and a co-signer. With no inspections, if there is anything of concern with the appraisal, the seller can refuse repairs.  There is no representation for the buyers when initially the sellers stated they were willing to pay for the buyers to have their own representation when they first viewed the home with their agent.  It wasn't until the buyers went back without their agent that the sellers convinced the buyers that they didn't need an agent at all.

 

Consider all of your options when you are looking at homes on the market whether they are listed with an agent or by owner.  Ask your agent to show you the sold properties that are most similar to the homes that you choose so that you know if they are priced well for the features and neighborhood.  A devoted real estate professional will protect your interests and solely represent you...your agent has no allegiance to the seller.

 

If you are thinking about purchasing a home in 2019, I would love to be your REALTOR.  Let's sit down and talk about the process and what you are hoping to achieve! 

 

Keep smiling!

 

Karen

 

 

 

Posted by

 

Karen Feltman, REALTOR®, ABR, AHS, CHMS,                                                                      CNE,CRS, e-Pro, green, GRI, SRES, TRC

Keller Williams Legacy Group

4850 Armar Drive SE Ste B

Cedar Rapids, Iowa 52403

Email: karenfeltman@gmail.com

Mobile  319-521-0701

www.KarenFeltman.com

Licensed in the State of Iowa

© 2010-2018 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist 

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Topic:
Home Buying
Location:
Iowa Linn County Cedar Rapids
Groups:
Active Rain Newbies
Realtors®
1st Time Buyers
Iowa Real Estate
Addicted to Active Rain
Tags:
buyer representation
cedar rapids real estate
buyer representation in iowa
for sale by owner properties
karen feltman realtor

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Rainmaker
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Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Ugh, that is not a good situation for the buyers, but a great situation for the seller. Buyers have nothing to lose by using an excellent buyer's agent, and everything to gain.

Jan 15, 2019 03:14 AM #1
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Karen Feltman buyers and sellers would be wise to call a professional real estate agent for guidance and avoid the horrors of a fsbo deal....

Jan 15, 2019 04:30 AM #2
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Karen Feltman

Relocation Specialist in Cedar Rapids, Iowa
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