The Cons of a For Sale by Owner

Posted by on Tuesday, December 10th, 2013 at 7:58am.    1773 Views

Not all "Deals" are Good Deals

In the market to buy a home and you want to "save" some money by purchasing a "for sale by owner" home? I strongly suggest that you read this article before signing any purchase documents. 

Often times a "for sale by owner" seller will tell a potential buyer they can save them some money by not using a Realtor in the transaction. This can be a very dangerous proposition. A savvy Realtor has the knowledge and expertise to protect a buyer's best interests.  

As you are already aware, there are dishonest people in our society. How do you know if the home seller that has offered you a "good deal" is not one of them? If you were to have to go into a court room to defend yourself in a case, would you do so without having your own professional representation?  

Buying a home can be a very emotional experience and is probably the single most important financial investment of your life. Let a professional Realtor help you, protect you and guide you in your endeavor.

I like to think of this picture as a couple who just sold their home to an unsuspecting buyer. Hypothetically, their home was built on top of a toxic waste dump and they chose not to disclose this to the buyer's. They are very relieved to be free of this nightmare. They aren't worried about a lawsuit either because the buyer's already told them they were tight on money and know they cannot afford an attorney to fight back. 

I've provided an extreme example of a peril of purchasing a FSBO. You may or may not encounter such an experience, but can you afford to take the risk?

4 Responses to "The Cons of a For Sale by Owner"

Steve Bayard wrote: I couldn't agree more. I've known many good people over the years that bought a FSBO, and come to me for help after closing with numerous problems and issues, and it saddens me that I can't help them after the fact.

Posted on Tuesday, December 10th, 2013 at 9:41am.

Marty Snyder wrote: I too get those calls Steve. That's why I presented the article. It's too late to close the barn door after the horse already got out. lol

Posted on Tuesday, December 10th, 2013 at 11:24am.

Craig wrote: You know, I read this and just had to say something. I almost bought a house from a FSBO who said it was in great shape, refused to work with a Realtor, and not only did they not want property inspections, but in the middle of the contract it was discovered that there was an easement across the land for a neighbor to drive around, and too, there must have been some other untold legal issue. He ended up going to jail, and the contract expired (thank God). I found out later that the house or rather the grounds had been used for illicit purposes.

I finally worked with a buyer's agent that not only showed me numerous homes in the area, but did all the diligence and found out about a mechanic's and a tax lien on two of them, saving me a lot of grief. No, all deals are not good deals, and certainly not the FSBO I had originally made an offer on.

Posted on Wednesday, January 8th, 2014 at 5:34pm.

Marty Snyder wrote: Sounds like you've had your fair share of problems with trying to buy a home on your own. I'm glad things worked out for you! It's nice you were able to locate a good buyer's agent too. Thanks for your comments.

Posted on Thursday, January 9th, 2014 at 3:54pm.

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