FOR SALE BY OWNER
How does finding a For Sale by Owner (FSBO) change things? In most cases, NOT MUCH. Having a Buyer Agent represent you for a FSBO transaction is the best way to ensure your needs are represented and your rights are protected.
Whether they are FSBO or represented by The Veenstra Team all have the same goal – to sell their home for the greatest amount of money in the shortest amount of time. In almost all cases a FSBO owner will agree to compensate an agent who brings a qualified buyer to the table. In a few rare circumstances you may need to pay the Buyer Agent’s commission yourself, but since a real estate transaction is such a complicated process and there are so many details which could cost you much more time, money and heartache than paying a REALTOR®’s commission, you are still much better off.
LET THE VEENSTRA TEAM MAKE THE FIRST CONTACT
So, how does this work? Just as you would for any other listed property, let your agent be the first contact with the FSBO home owner. This is important because your agent should set the tone for representation and negotiation from the beginning. If you approach a FSBO owner first, and then ask The Veenstra Team to represent you, there may be times when the FSBO owner will no longer consider paying the REALTOR®’s fee. In order to allow The Veenstra Team to represent you let him have the first conversation with the seller.
AN AGENT CAN PROTECT YOU FROM OVERPRICING
A FSBO can present special challenges to a home buyer since, in most cases, a FSBO owner has not had a comprehensive market analysis done. While you think that you may be able to save some money if you don’t have to pay a REALTOR®, you could wind up paying significantly more than the fair market price of the home, because the FSBO owner typically does not have the information necessary to set the fair market value. When a Buyer Agent is representing you, you can ask him/her to do a comparative market analysis on the property if you are interested. This in itself may save you lots of money.
AN AGENT CAN EFFECTIVELY NEGOTIATE FOR YOU
A FSBO is sometimes much harder to negotiate with – especially when there is not a skilled professional negotiator (your Buyer Agent with the Veenstra Team) doing the negotiating. In a typical transaction a Buyer Agent is negotiating with a seller’s REALTOR®. There are not any personal emotions showing up in that negotiation. When negotiating with a FSBO, it is very important to have at least one skilled negotiator to ensure that emotions do not short circuit the transaction.
AN AGENT MAY FIND STRUCTURAL ISSUES NOT DISCLOSED
A professional buyer agent is trained to look at the condition and structure of a house. There are some times when a home owner chooses to sell their home as a FSBO because they are aware of some items that a REALTOR® who is following the state rules would require that the seller disclose. Having a buyer agent who is aware of all of the disclosure rules and who has a trained eye for looking for defects is a great safeguard.
AN AGENT KNOWS ALL THE STEPS TO MAKE A TRANSACTION LEGAL AND BINDING
Finally, a buyer agent knows all the steps which the law requires to make a transaction legal and binding. The National Association of REALTORS® has done research and has found that there are approximately 20 steps to a complete real estate transaction. Most of those steps have some legal ramifications attached to them as well. Unless a home buyer is willing to assume all the risk and study all the laws for all the steps, purchasing without the help of trained professional can have costly and at times, even disastrous results. The Veenstra Team must attend education classes every year to make sure that s/he is aware of current law and practice. Why risk the consequences when in almost 99% of the time you can work with a Buyer Agent completely for free –even with a FSBO!
If you are going to purchase a home, commit to working with the a Buyer Agent from the Veenstra Team and allow them to legally represent you! You will have the best chance of a smooth transaction to purchase the home of your dreams.
The Veenstra Team can help you find great For Sale by Owner listings and will be able to work with almost all of them! If you have not already done so, call 269-350-5514 or 1-800-776-0025 Ext 10214 to be represented by The Veenstra Team. They can guide you through the buying process!
NEGOTIATING A PURCHASE