REAL ESTATE MYTH #2
“I DON’T NEED A REALTOR WHEN PURCHASING A ‘FOR SALE BY OWNER’ PROPERTY.” NOT TRUE, HERE ARE THE FACTS:
The myth of not needing a Realtor to purchase a For Sale by Owner (FSBO) is common. As a matter of fact many buyers also think that because the homeowners do not have a listing agent that the seller will refuse to even work with a buyer’s agent. This is certainly not true because most FSBO’s welcome agents and even advertise as such on the internet and in local newspapers. Here are some facts regarding FSBO’s:
1. FSBO’s typically pay out 3% to buyer’s agents, which is the same commission that would be paid out to the buyer’s agent if they had a listing agent. There are times when they may pay out 2% or 2.5% and your agent should have no problem with those lower commissions. Any commission is always better than 0%.
2. The homeowner is already saving money on the list side, therefore they welcome Realtors; knowing they will bring them the needed traffic to sell their property.
3. It is absolutely necessary to have agent representation when purchasing a FSBO. Otherwise both parties have the lack of a real estate professional involved, leading to many last minute contract cancellations, disputes over the property disclosures, possible litigation, and at times, a great loss of time and money from both parties involved.
4. If you plan to use a Realtor in your FSBO purchase it is necessary that your agent initially shows you the property; otherwise they may not be able to earn the commission from the sale.
5. Your buyer’s agent will have many skills and resources that are pertinent to the real estate transaction. They will have the appropriate documentation signed prior to the showing, will have the necessary legal forms to make an offer, and possess the necessary negotiating skills to get you the best deal. Your agent will also have a list of closing attorneys, homes inspectors, lenders, and even licensed contractors for possible repairs.
6. Your home purchase will most likely be the largest and most important purchase of your lifetime. Therefore you should never take a chance on leaving the professionals out of the picture or you may pay much more for the house than you needed and you may just get end up with a lemon of house, or even in a lawsuit.
If you would like to hire a professional real estate broker to represent you in your residential or commercial purchases, call Rob Sightler, owner and principal broker of CUSTOM SELECT REALTY (502) 693-5289. Visit our website for commercial and residential search engines for Louisville, Oldham County, and Southern Indiana:
