Buying For Sale By Owner, What Should You Know

With all the homes on the market there are a variety of ways to buy.

1. Use a Realtor to find a home and protect your rights.
2. Buy a foreclosure home on the court foot steps.
3. Find a home listed through a Realtor and represent yourself.
4. Find a For Sale By Owner home and represent yourself.

Foreclosure homes can be purchased for a good price, but, you need either cash or a solid loan already lined up. Know that you will be competing with cash buyers. There is some risk. Just like the stock market, the higher the risk, the higher the return, the higher the chance of loss.

For Sale By Owner (FSBO) homes are abundant. Buyers who choose to go it alone commonly think that they are saving a bundle of money by cutting commissions out of the picture. Sometimes, they are right. Many times these buyers end up paying more than they could have. That doesn’t mean it is not possible.

Many times both the Seller and the Buyer of a FSBO have good intent. There is always the risk of a Buyer feeling to comfortable with a charismatic Seller. Did  they really  drop the price to the lowest they would  accept because they like you? How does what you paid compare to other like sales in the area? How reliable are the resources you use to find out? I have seen some off by over $40,0000. How long have you known the Seller? For the Seller, the reverse…did they get the best deal? What protections do either have following the sale? Since we live in a litigious society, how costly is a law suit?

The Arizona Dept. of Real Estate has implemented numerous hidden protections for Buyers and Sellers. Protections that are not knowingly available in a direct sales from Seller to Buyer.

As a Buyer, what do you really know about the home? What do you know about the condition of the home? What do you know about the home’s history? What must be disclosed? What resources do you have verify information? What protections do you have? Are there liens against the home? How do you find out? Is the Seller have legal right to sell the home? What are you missing in the transaction? What will it cost you if you miss something? How much can you afford to lose…$1,000?…$10,000?…$100,000?…$500,000?

Does it make sense to use a Realtor whether buying a FSBO, new home, or resale home? Of course it does. Does it cost you any more? No it doesn’t. If things do go wrong, who can you go back to? Use a Realtor, be safe, protect yourself.

This entry was posted on Sunday, April 20th, 2008 at 8:15 pm and is filed under Tucson Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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