I didn’t intend for this to be a multi part series but this is a direct extension of last week’s post. We are still talking about the dangers of For Sale By Owners, but this week we are going to dig in on how this impacts a Seller.
Who’s in charge?
When a buyer is looking at homes that are for sale by owner a few items that can cause concern. For me, when working as a buyer going after a home sold by the owners is simply who is in charge of the details.
There are many forms and legal documents that need to be filled out. Have the disclosures been completed properly? Who handled the pre-listing inspections? Who is handling the earnest money deposit? Is the buyer truly aware of the home value? These are all questions that are usually put to rest when there is a listing agent involved.
Where’s the money?
Is the buyers agent commission going to be paid by the buyers or the sellers. In a typical transaction, the commissions are paid by the sellers, but in the case of a FSBO, this may not be true. If the seller is trying to avoid that 3%, that fee is passed on to the buyer.
If the home doesn’t appraise and the buyers don’t have the funds in pocket to pay the agent, the deal can’t proceed. That also affects the buyers equity and bottom line price at closing. The home is costing them more and for more buying power they are likely to move on.
Is there a reason a listing agent isn’t involved?
Why are the sellers not using an agent? This is a question I’ve gotten and almost always wonder when a listing agent isn’t involved. Is the seller trying to hide something and by not having an agent involved, are they trying to hide important facts about the home?
A seller is not bound by the same ethical considerations as a licensed agent is. While an agent owes loyalty to their client, they can not hide or gloss over material facts a seller is not held to that same standard. A flood, nearby zoning change, or leaky roof that would need to be disclosed by a listing agent, may intentionally or unintentionally avoid those important factors from a buyer.
What is next in the series???
I am about to start the next round of video scripting and editing for the Terms Tips and Tricks blogs. I have some ideas, but I’d really like to get some topics straight from you. If there’s something you’d like to hear more about, please reach out and let me know. I’d love to hear from you.
There’s always someone in your circle of influence who is likely considering buying or selling their home. Please make sure you push my name and services (and web site) along to them. I would love to assist in some way. Until next time….Welcome Home!
Rose and Womble
ChrisWhitehurst.com 252 312 2263