“For Sale By Owner” Homes Can Be A Challenge For Realtors
December 5th, 2009 categories: Buying Real Estate in Coconut Grove
Back during the boom there was a “For Sale By Owner” sign on every block in Coconut Grove. These days, it is very rare to find a true FSBO and for the most part FSBO’s have been taken over by the discount broker (the broker that charges a small fee to place your home on the MLS but otherwise gives you no added service). Although there are a plethora of reasons to have your own experienced agent representing you on the selling side (i.e. to qualify buyers, market your home correctly, negotiate properly, help with appraisal and inspection hurdles, help with pricing, etc. etc.) I do not hold it against anyone who decides to sell their home on their own.
But problems do arise when I am representing the buyer who is hoping to purchase a “For Sale By Owner”. First, the sellers have typically over-valued their house and I am the one who has to break the news to them that the comps don’t support such a price (this is usually the job of the listing agent) and because I am representing the buyer they have a hard time accepting my numbers. Second, handling the negotiation process is very difficult when you are the opposing party and have to deal directly with the seller. As you know, real estate transactions can get very emotional for some people and if you don’t have that other agent as a buffer the deal can easily fall apart. Third, my commission is not protected by a listing agreement found in a traditional transaction.
I have certainly handled many purchases of “For Sale By Owners” for my clients, but the deals do not come without headaches.
