The Real Estate Encyclopedia
What Is The Biggest Risk Of Buying a FSBO Property?
Category - Home Buying Questions - Search & Offer FAQ's
The biggest risk when buying a home for sale by owner is a lack of expert representation on both sides. The seller is attempting to handle the sale independently and may not be aware of legal requirements such as full disclosure of any issues pertaining to the property which the buyer has a legal right to be informed of.

Not engaging a real estate expert for guidance in handling a real estate purchase transaction, could cost the buyer thousands of dollars, if the transaction is not conducted within the legal requirements of the state. For example, an unprepared buyer may not think of conducting an inspection or might engage a handyman friend or relative to assess the state of the property. Buyers have found themselves paying large amounts of money for repairs, which went uncovered before the closing. Other issues might include title problems or surprises such as the unwillingness of a spouse to agree to sell the home.

A real estate transaction involves a large number of legal documents and deadlines which an inexperienced buyer has no knowledge of. Without proper representation, the buyer runs risks, which could cost much more than a real estate commission. In addition, the buyer must remember that, in most cases, the real estate commission is paid by the seller and there is no cost to the buyer.

If you buy a FSBO house through the agent you have a brokerage agreement with, the agent should negotiate the commission with the seller when she/he obtains approval to show the unlisted property. If no agreement is reached with the seller, the terms of your buyer brokerage agreement will indicate the amount of commission you owe the agent.

 
Category(s)
Home Buying Questions - Search & Offer FAQ's
[edit]
Home   |   About Us   |   Contact Us   |   Patrons   |   FAQ's   |   Site Map
© 2008 - All Rights Reserved.
Thank you for visiting Real Estate Wiki - the leading dictionary, directory, encyclopedia and glossary for the real estate and mortgage industries .