What You Need To Know When Buying A FSBO

What You Need To Know When Buying A FSBO

Many times home buyers in Nanaimo feel that if they buy a FSBO, also known as a 'for sale by owner' home, that they'll be getting a good deal.

But if you're not careful, that 'good deal' FSBO could end up being a money pit, costing you much more than you ever imagined.

Here are a few things to think about if you're thinking about buying a home that's for sale by owner:

When a home is listed for sale by a Realtor, there are certain guidelines, rules and regulations that the real estate professional must follow along with her client.  Disclosure of known defects is one of these, along with the fact that the real estate agent is also responsible for disclosing items that she should know about.

For example, if there is a visible water leak under the kitchen sink, the Realtor should know that mold may be present, and recommend to her client preventative action and inspection.  Many FSBO sellers, on the other hand, believe that if they can pretend not to know about something, then there is no need to disclose . . . and they end up believing that the buyer should be aware.

Many people who try to sell their own home without using a Realtor will also try to pressure the buyer into not using her real estate agent as well, mostly so that the buyer can avoid paying a real estate agent commission.   While at first glance this might make sense when you really think about it, it is the FSBO who is winning and you as the buyer who is losing, because you will not get the guidance and professional representation from your buyer's broker.

Lastly, when a home is listed on a multiple listing service there is a lot of valuable information to a buyer that is gathered - everything from room sizes, to the history of repairs and updating, liens, HOA fees and property taxes, and much more.   All of this is put together in the home listing profile and available at a glance for the buyer.   With an FSBO you will end up having to gather each piece of information bit by bit, meaning that it will take you much longer to discover whether you are getting a good deal by buying a FSBO . . . or not!