Selling a house through FSBO hidden dangers

There are a percentage of home owners that think I can sell my home and save on paying a Real Estate Agent a commission. But there some issues that you need to know about before taking this approach. A real estate agent posts your home on the MLS (Multiple Listing Service), but you will not have access to that database if you sell FSBO (for sale by owner). MOST buyers’ agents will not even know your house is for sale.

It's a tremendous difference between FSBO and selling with the assistance of an agent. There are THOUSANDS of agents trying to sell your house when it’s on the MLS. When you do it alone, one person is trying to sell your house; you.

Since I shared the main difference between you selling and thousands selling your home, if you still want to sell FSBO, I would recommend enlisting the help of a real estate attorney to draw up your contract to make sure you are protecting your rights and not violating any laws or rights of others. And beware that AS-IS, does not mean you hide facts or fail to disclose information. It just means you do not want to make any repairs or warranties. However, some buyers will have lenders that REQUIRE you to fix certain items or they will refuse to fund a loan.

You are also obligated to disclose everything you know about the house. But some exceptions may apply. For example, in California, you MUST tell a buyer that someone died in your house if that happened. In Delaware that same question can only be answered if the buyers request it in writing. However, if the person died of HIV, you must NOT disclose the death. In California, you are required to provide information about Megan’s Law, Lead-Based Paint Facts, Water Heater Safety, Earthquake Safety, Natural Hazards, etc.

I strongly recommend you use a professional real estate agent to guide you through the process; it costs you NO MONEY out of your pocket to hire an agent. Your agent only makes money if they sell the house and his/her payment comes directly out of the sale proceeds AFTER the sale.

Now I will reveal the ugly the obvious that most people overlook.

When you open your home to a stranger who just rang the bell, you have no idea who the person stepping through your doorway is. Friend or foe? Looky-loo or prospective Buyer? Qualified or just checking out the neighborhood? If they are qualified, can they get a loan anywhere near the price that you are asking?

Maybe they are looking to see if you have a security system, a vicious dog, asking friendly questions to find out when you might be leaving town. Often, would-be Buyers unescorted in your home are looking for the kinds of medicines you have in the bathroom cabinet, or the jewelry that you left lying on the bedside table. You also run the risk of someone not liking you and this could have been a potential offer.

So when their in your home you’re going to escort them through the home and then ask what do you think. People are uncomfortable in discussing with each other what they think of your home while you are with them. They are not interested in how your Uncle Peter installed a new sink just last year, why you painted that particular wall red, or how your house has granite countertops, as opposed to the identical house just down the street that has Formica – for $30,000 less.

And because you are there, they think they are intruding on YOUR time and YOUR home. Not conducive to making a sale when you are trying to get them to see it as THEIR home.

So before you decide to pay $399 up front to place that FSBO sign on your lawn, at least speak with a professional Realtor. Find out what really is your best interest. Or call me or email me and ask what some of the reason why I believe it’s not wise to sell your home FSBO. Sellers generally net more money when they use the services of a Professional Realtor even after paying out the commission. Be safe, not sorry.