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.

How about some positive real estate news for a change…Interest rates are below 5%. Yes, I said below 5%!   Although nobody knows for sure how long this trend will continue indications point to a continuation of favorable rates.

Let’s put that in perspective.  This would give you a payment that is $100 to $150 less per month in our most popular local price ranges of $180,000-$250,000  than if you were paying a 1% higher rate for the same loan amount, or allow you to buy a more expensive home for the same payment.

So there is good news in the real estate industry. Also, 100% loans programs are still available to qualified buyers even though you may have heard otherwise.