Sound Off Brian A. Clarke Jr What if a buyer wants to purchase a for-sale-by-owner home?
You are looking to purchase a new home and are working with a Realtor. Your Realtor has all the resources to find the home you are looking for via the Multiple Listing Service. But wait... You find a home listed online that your Realtor has not sent to you. In this situation, I strongly recommend bringing this to your Realtor’s attention.
Your Realtor researches the homes and sees that the home is a FSBO (For Sale By Owner.) What to do in this situation? It can be very delicate because the seller could go several ways when a Realtor is involved.
If a seller is looking to sell the home on their own, there is or could be several reasons why:
1) They feel avoiding commission yields them more money. (Historically and market research shows this in not accurate.)
2) The seller feels their house is worth more than local expert Realtors have given them.
3) The seller wants to “save” proverbial money and stress.
As a buyer that is represented by a Realtor, we will represent you and protect your best interests. If a FSBO is in your radar, discussion with the buyer and seller has to happen. Will the seller cover the buying agent’s compensation? Does the seller have all documentation necessary (disclosures, maps, etc.?)
If the seller is willing to cover the BAC (buyer agency commission), this is the perfect scenario. If not, a conversation with the buyer will occur reviewing the buyer paying their agent’s commission.
Is the home “priced” correctly? Market research dictates that FSBO homes are typically overpriced.
Do we have the correct documents (Disclosures required by Connecticut) or any maps showing where a septic or well might be?
There are some strong considerations to review when considering a FSBO. Most concerns are the disclosures required by Connecticut and true value of the home. Your Realtor can help you navigate these obstacles along with assuring your best interest.
Brian A. Clarke Jr.,
William Pitt Sotheby’s