Selling your home FSBO- Is there really a risk?

You bet there is! For both the seller and the buyer. Selling a home without an agent is a lot more challenging than most  owners think.  A very valuable role that your agent plays in your transaction is negotiating issues on your behalf without letting emotions get in the way.  Most sellers are just as emotional as the buyer is about their sale. That's not to say that buying a FSBO home is easy. Buying a FSBO home is also a complex transaction, involving many events and services  that needs to be coordinated, and involves an element of risk. Put the two unrepresented parties together and it's a recipe for disaster.

Before a seller puts their home up for sale, the first thing that needs to be done is to make sure through the town clerks office that there are no liens on the property that would preclude them from selling the home, or at minimum, affect their bottom line. The seller must then obtain all of the state required documentation and disclosures and fill them out truthfully and properly, as these disclosures must be given to the buyer.

Misrepresenting your home's size, condition or amenities even by accident can result in a lawsuit, and most always ends up as a lost sale. Any marketing materials must be clear and  accurate. Unfortunately, we live in a litigious society where people sue for just about anything they can think of. Sorry, but true. There was an local seller  who got sued years ago because they mis-stated the square footage on their  home. The buyer thought he was purchasing a  2500 square foot home, and it turned out to be 2100 and some odd square feet, as found out by the appraiser. The buyer then proceeded to calculate square footage cost based upon the size stated on the listing(and assumed to be accurate by the buyer), deducted the cost of the overage and revised his offer.  My unresolved question in this is- Why didn't the buyer's agent tell that buyer?

The seller didn't want to budge from the original price, the buyer wanted that house and threatened a much larger lawsuit if the seller didn't follow through with the sale. It did close, however that seller ended up selling his home for a much less than fair price.  I would have hated to sit at that closing table. Ouch!

Something to think about- Real estate agents have to pass a test  in order to become licensed. The state thinks it is important enough that the State of Connecticut Department of Consumer Protection oversees all licensees, and hold them to strict guidelines, besides having mandatory education every two years on new laws.  When you look for a Realtor, you look for an agent that is experienced, right? You want someone who knows all the ins and outs of a transaction, and can help through the rough spots.  If that is the case, when you sell your home by yourself, you are actually hiring the most inexperienced person to represent you. Even if you bought and sold ten houses before,  the laws have changed and continue to do so. What was acceptable even five years ago is not appropriate  now.

And what about that interested  buyer that pulls up to your home in the nice new Mercedes, gets out of the car and is dressed very well? They look qualified, but are they? How much are those payments for that luxury automobile? Do they fit within the buyers income bracket, whereas the payment will not lesen their ability to get a mortgage? That buyer may very well come to you with a pre-qualification letter, but as Realtors- we know that a pre-approval letter is the one that counts. Most anyone can get a pre-qualification letter- generally, no assets are even checked before those letters are issued. Not worth the paper they're written on, in my opinion.

Some buyers look ONLY for FSBO's, thinking that they can take advantage of an uneducated seller.  The offer that you receive on your home has to have all of the necessary elements included or it is not a valid offer. All contingencies must be spelled out and have due dates- that even includes inspections.

Of course, you will need an attorney, to perform the closing, just as you would with an agent. However, any legal issues over and above a standard closing will be extra. You can end up paying an attorney more than you would have paid a Realtor to represent your interests, before anything ever escalated to the point where you have to call an attorney in.  

Call me, I don't bite and I am not hard sell or high- pressure. There is no cost for me to come over and give you an honest evaluation. I look at it this way- If you are truly not interested in hiring me, or any agent, you may know someone else who is someday and that you would think of me and refer my services.All the best to you- when you are ready for a Realtor, contact me. I'm here for you.