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According to the National Association of Realtors over ninety percent of homes sold in the United States are sold using the services of a professional Realtor. The other ten percent FSBO(pronounced Fizz-bo) which is real estate jargon for selling by owner (For Sale By Owner).
If you are considering selling by owner or buying a FSBO, there are risks involved for both the buyers and sellers. Sellers risk selling their property below market value. Buyers risk paying more than a property is worth. FSBOS generally price their homes based on sales information received ‘over the fence’ from neighbors or based on the selling prices of Realtor listings in the area. The FSBO objective is to save the commission.
FSBO buyers also believe they can save the commission by buying direct from the seller. Buyers shop by comparison whether they want to buy a widget or a home. The problem is there is only one commission and both parties can’t save. Would be FSBO sellers and buyers should consider the following before going it alone.
FSBO’s are not governed by the same disclosure laws as Realtors. If you plan to buy a FSBO make sure that you have the property thoroughly inspected by qualified professionals. Buyers should pay for all inspections. DO NOT accept seller inspection statements, take nothing for granted and verify everything.
Ask yourself, do I have the expertise to draft a purchase contract that protects ME and accurately states the terms of MY agreement with the seller. Serious consideration should be given to hiring a knowledgeable real estate attorney if there is no real estate agent involved.
Many buyers in the Kansas City marketplace are transferred to the area and have little or no knowledge about the dynamics of a real estate transaction and are therefore urged by the transferring companies to use the professional services of a Realtor. ‘Out of town’ buyers have limited time to find and purchase a home and must manage the time spent completing all the necessary steps involved in a home purchase.
Buying or selling by owner presents many potential problems. If you are serious about buying and or selling, I strongly suggest you either hire an attorney or seek the counsel of a professional Realtor.
Whether you’re thinking about buying or selling or merely seeking information, rely on me to provide accurate up to date information about the marketplace today.
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