Purchasing Windsor homes that are “For Sale By Owner,” can be a very risky experience and is not recommended for those without a sufficient real estate background.
It is understood that today’s home buyers are looking for bargain. Who doesn’t want to save money when they can? But like everything else, trying to cut corners can often bring a host of other problems, including spending more money than you originally intended.
Here are some reasons why you should be wary about purchasing a FSBO home:
1. Paying Too Much: Most FSBO Windsor homes are overpriced. Period. Sellers believe their home is worth a certain amount, regardless of neighborhood comparisons and the current real estate market. It is very rare that a seller has a clear understanding of what a good price on their home should be. There are too many horror stories involving buyers who simply didn’t know they were paying too much for a home until it was too late. By having an experienced real estate agent at your side these problems can easily be avoided.
2. Negotiating With Sellers Directly: This is always a very tricky situation for a variety of reasons. Sellers of FSBO homes are usually more emotionally attached to their homes and it is much harder to negotiate with a seller who won’t budge on prices, repairs or anything else you may want included in the contract. If a seller knows how much you want the home, they may consider you vulnerable and you end up paying too much. However, if you play hardball, their emotions could get in the way and they may walk away. Regardless, you lose.
3. You Will Need a Real Estate Lawyer: If you choose not to work with a real estate agent, it is necessary for you to hire a real estate lawyer to review your contract. This is where you don’t want to compromise. With lawyers averaging $350 an hour, this can be costly, particularly if a contract needs to be revised several times.
4. The Appraisal May Be Low: When sellers and buyers don’t have access to neighborhood comps and other market data, then oftentimes, the price agreed upon for a FSBO home is often higher than the actual value of a home. When that’s the case, the appraisal will come in low and lenders will not loan the money. It is then that you will have to renegotiate, make up the difference or cancel the contract. A good agent can spot an overpriced home before you start the negotiating process.
So if you think buying FSBO Windsor homes guarantees you a better deal, it might be time to think again.