The majority of people would not consider purchasing a home without an agent. In any given year, approximately 10% to 20% of home buying sales transactions are completed without the help of a real estate agent. Even though many for sale by owner (FSBO) sellers will going to pay a share of profit to a buyer’s agent, some will not. Some FSBOs want to sell their property without any real estate agent involved in the transaction. In the industry, these types of sellers are contemplated to be unrepresented.
PURCHASING A HOME FROM AN UNPRESENTED SELLER
An unrepresented seller might select to lock out a real estate agent because of money. Their main reason is they don’t want to pay a real estate commission. Some lose a lot of money because of the approach that paying a commission will cost more when a good agent often pays for themselves through the negotiation process. But, that’s their loss and your gain.
Most of the agents in the industry see a lot of FSBOs being underpriced, which is agreeable on the side of the buyer. It’s also common for a home buyer to wonder is the seller is concealing a defect or some other problem because they don’t want an agent involved, which is also probable. Always beware if you are trying to buy a home straight from an unrepresented seller. The seller may not know what they are doing or might be taking advantage of you; either way, it could be problematic.
THE BURDEN OF HOME BUYING WITHOUT AN AGENT
Take note that some home buyers, especially the first-time home buyers, are circumspect of real estate agents. They always thought that the real estate agents care only about closing the deal and not actually about them. But, there is only a small percentage of real estate agents are like that, but the bigger percentage cares deeply about providing quality service and treating clients genuinely and ethically.
IF YOU CHOOSE TO BUY A HOME WITHOUT AN AGENT’S HELP
The first thing first is, you will have to do your negotiation. Keep in mind that negotiating an offer is very different than say, buying a car because the risks in purchasing a home far exceed price considerations. The next thing is, you won’t have a neighborhood specialist on which to rely. The fact that agents who sell in certain areas know the details about the neighborhood that a seller might not disclose. The last thing is, you will be on your own to discover the types of inspections you should perform. The majority of the buyers don’t know how to spot probable problems such as dry rot or wet basements or know how to determine other problems.
Before doing a purchase directly from an owner, you should not forget to protect yourself from risks that can be costly. Using a buyer’s agent and hiring a real estate lawyer to accommodate all your queries and review contracts can minimize the risk. Also, do your effort to research home values, transportation, and schools in the area.