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What Buyer's Should Know About For Sale By Owners (FSBOS)
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INFORMATION BUYERS SHOULD
KNOW ABOUT "FOR SALE BY OWNERS"When you are in the market to purchase a home, there is a lot to learn about the process. You should understand some of the hidden risks when considering purchasing a home by a "For Sale By Owner” (FSBO) without a REALTOR®.
The "For Sale By Owner", most likely, has not received a thorough Competitive Market Analysis on their home from a professional Realtor®. As a result, the seller’s pricing is generally inflated, and speculative. Typically the FSBO theorizes that pricing can always be reduced and consequently, overprices the home. If you are not represented by a REALTOR®, who is a local market specialist possessing valuable up-to-date market information, chances are you will more than likely overpay for the home.
Did you know that there was a time when caveat emptor, or "buyer beware," ruled in the home buying arena. The burden of discovering property defects was placed wholly on the buyer.
In recent years, there has been a move away from caveat emptor. Instead, many states are requiring sellers to disclose property defects when they sell. In some states, "seller beware" is now the more appropriate admonition.
California was one of the first states to require a state-mandated seller disclosure statement, called The Real Estate Transfer Disclosure Statement, or TDS. The TDS asks sellers to disclose property defects they are aware of. If the buyers haven't already signed off on a completed TDS before entering into a purchase contract, they have the right to cancel the contract within 3 days after the TDS is delivered to them, or within 5 days if it's mailed.
I have found through experience that disclosure in writing is the best way to clearly communicate the physical aspects of the property. The Seller’s Disclosure reduces uncertainty and misunderstandings thus giving buyers confidence and peace of mind when negotiating on a property. I can assist with having a FSBO fill out our company form to assist you prior to making an offer to purchase the property.
Purchasing a home is one of the biggest investments you will ever make. It is important to have the proper representation for that important transaction. A REALTOR® can represent you in all areas: negotiating the best price, terms, conditions, inclusions, exclusions, disclosure and area information. When you purchase directly from a FSBO, no professional representation is provided.
Quite often, FSBO transactions fall through because of personality conflicts, overzealous demands by either buyer or seller or the seller’s emotional ties to the property. A REALTOR® acts as a "non-emotionally involved third party" who can help work through all sensitive issues. The Agent can also be present for the home inspection, manage all the details of the transaction. |
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