Caveat emptor (Buyers Beware)
Buyers often look at FSBO as the way to make a killing in the purchase of a house. They assume that because the seller is not using an agent that (1) the seller will sell the house for less money or (2) that the seller is naive and they can get a better deal because the seller will not understand the art of negotiating.
I strongly recommend to buyers to not assume either is true.
Myth one: The FSBO seller is going to sell the house for less money so the buyer can save money. FSBO sellers are trying to save on the agent’s commissions and could care less about saving you money. They want more money in their pockets – not less out of yours.
Myth two: The seller has been thru at least one real estate transaction before – namely, they bought the house. They may have bought and sold many things over the years including cars, real estate, boats, and other items. They may actually be in sales themselves. The fastest way to turn off a seller is to insult the seller.
Oh, and remember this – when dealing with a personal owner/seller, are they going to assist you with information on little things like the condition of the house, the price trends in the neighborhood, or let you know about a pending commercial development near by which might affect home prices because of traffic and noise? Just something to think about.
If, as a buyer, you have looked at all the FSBOs and not found a house of your dreams – consider hiring an agent. A buyers agent can be free to you and can often do a search for houses that meet your dreams and even preview them for you saving you time and effort. Plus if the agent is a member of the local MLS, they can access all the homes available on the system also.
If you need help finding a buyers agent you can trust – drop me a note and I will find one that knows your neighborhood specifically.