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Realtors and agents across the country dread the FSBO (For Sale By Owner), and it’s not just because these sellers are playing dress-up and pretending to be real estate agents. There are all sorts of headaches and hiccups that can happen when not working with a professional, and here are the top five:
A FSBO is the owner of the home they want to sell, and they are not a licensed real estate agent. They aren’t bound by the Code of Ethics that Realtors are, and may do and say whatever they want to get their home sold. This is like buying sand from a guy on the beach, or taking nutrition advice from Little Debbie.
It is required by law for disclosures to be made about the condition of the home, and if any repairs were made. A real estate agent will have access to the database of paperwork and have it properly documented, and know how to pull records to verify there aren’t outstanding liens, assessments, or back taxes owed. A FSBO may not even know this documentation is required, and possibly may try to cover things up.
Throughout a real estate transaction, there are so many back and forth negotiations going on you’d think it was a tennis match. This is because real estate agents are hired to best represent their clients, and there are so many complexities involved, including: the offer, closing date, financing terms, comps, appraisal report, inspection report, daily occupancy rate, and more—so it’s best to let the professionals handle it all. FSBOs, on the other hand, are representing themselves and don’t care what you need or want.
It’s easy to assume that a FSBO is broke; otherwise they would’ve hired a professional real estate agent. If the seller is broke, then what happens if the h