Tags: Buyers, FSBO, Property, Real Estate Agent, Sellers
Over the years I have had many people ask me the benefits and risks of selling, or buying a home without the use of a real estate agent.
It initially sounds like a good plan to the seller. After all, they will save the cost of the commission on the sale of their home. Unfortunately the buyers that shop For Sale By Owner (FSBO) properties are looking at these properties with the expectation of taking the cost of the commission that the seller is not paying off of the price of the house.
Only one party can save the cost of the commission. If you are the seller then the buyer will probably offer you less for the property because it isn’t listed with a real estate agent. If you are the buyer you may not be informed about the true market value of the property and sellers usually don’t discount the price of the home just because they aren’t paying a commission. They offer the home at a price that would include the price of a commission and then they keep the extra money.
I have always said that even if I were not in this business, I would use a real estate agent to make sure that I had someone looking out for my interests and to make sure that all of the regulations followed.