Thursday, April 21, 2016

Are You Thinking of Buying Directly from a For-Sale-By-Owner?

Provided by Tom McChesney of Keller Williams Realty Key Partners LLC. 

Call 913-908-2453 or email me if you would like professional representation in purchasing your next home.


Whether you made a conscious decision to purchase a home For Sale By Owner, or happened to find the home of your dreams through a FSBO, you should weigh the financial and emotional risks associated with dealing directly with a FSBO.

First and primary: Do you know what constitutes a valid contract? Are you absolutely certain the seller knows? Where will you obtain current, legally approved, valid residential real estate sale documents for your State? Laws vary from State to State and legal contracts undergo frequent revisions. Real estate documents are lengthy and filled with language difficult to comprehend. Waiting until the highly emotional period of contract negotiation (perhaps in the presence of multiple offers) could mean you may not have the time or inclination to thoroughly review a lengthy sales contract. You may not have the time to consult with an attorney either! Take some time before you begin looking at homes to obtain and familiarize yourself with current real estate documents in your State. If you don't understand the contract in its entirety, consult with a real estate attorney. (Don't depend on or trust the seller to "take care of everything" or advise you.)

A real estate transaction often starts out well, with both parties believing they understand the terms and conditions agreed to. Buyer and seller may even feel an affinity towards one another, but that can change quickly. A house isn't just a house, it's been "home" to the seller. That alone implies emotional ties. The seller may not be thrilled about the move and conflict among family members over the move may also create tension in your dealings with the seller. Realize that even in the best situation you are in conflict with the seller. What do I mean? Well, you (the buyer) want to purchase at the lowest price possible in terms favorable to the you. The seller wants to sell at the highest price possible in terms favorable to the him/her. Both buyer and seller are looking out for their own best interests and those interests conflict with one another. Add emotions into the mix and the whole tone of the transaction can change in a heartbeat. 

One of the most sensitive parts of a real estate sale is the inspection period. There are several ways that inspections can complicate the process.  While not comprehensive, they include:
·         inspections are not completed within the prescribed time frame in the contract
·         the inspection reveals serious issues that are costly to address
·         the credentials of the inspector may be called into question
·         the seller refuses any or all of the requested repairs or to make financial concessions for the buyer to correct after closing
·         parties are unable to reach an agreement during the prescribed time frame in the contract, voiding the agreement
·         agreed-upon repairs are not completed

Get the idea? The inspection can reveal multiple issues so it's important to recognize and differentiate between a serious issue and a minor issue and then weigh appropriately items worthy of negotiating. Upon making that determination, it takes skillful negotiation and tact to present these to the seller and obtain agreement. Consider also: if you are working directly with the seller, your access to the house for inspections and the appraisal is dependent entirely upon the seller's availability and cooperation. In spite of all this, inspections are a great idea. Why? Homes are not self-maintaining. If maintenance has been deferred, the home will have varying degrees of deterioration or neglect. It's in the buyer's best interest to know of any issues before closing.  

Employing the right timing for various aspects to the sale may be a factor few buyers consider. For instance, a buyer may think it best to order an appraisal right away - as soon as the contract is signed. Since the inspection period can be one of the "make or break" parts of the sale, it's generally best to wait until the inspection period is over before ordering the appraisal. An exception would be when there is too little time between the effective date of the contract and the closing date. 

Any of the situations described above can be serious enough to cause the sale to fall apart. Many things can trigger collapse of the sale and both buyer and seller can experience financial and emotional losses when a sale falls apart.

While there's never a guarantee of a trouble-free transaction in transferring real estate, a professional real estate agent has the knowledge and experience to help buyers (and sellers) navigate through the process and come out of difficult situations with a happy result for both buyer and seller. Take advantage of my experience and professionalism to represent and advise you in your real estate purchase.  




Provided by Tom McChesney of Keller Williams Realty Key Partners LLC. 

Call 913-908-2453 or email me if you would like professional representation in purchasing your next home..











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