NO BUYER'S AGENT = INCREASED RISK (PT 2)

FOR SALE BY OWNER (PT 1)
(Bill Gassett)

When you go without an agent to buy a FSBO home, it’s just you and the seller – two regular people, making a deal without any of the hassles of dealing with “professionals.” What could be simpler? Of course, homeowners who are selling without a Realtor are usually doing so to save money on a commission. There are pros and cons of selling a home without a real estate agent, and the same holds true when buying one.

Well, the simplicity of this arrangement is more of an illusion than a reality. Potential problems of buying a home without a Realtor include:

OVERPAYING FOR THE HOME
The price of the FSBO home is set by the owner, who may or may not have any idea what the actual value of the house is. Homeowners are notorious for overestimating the value of their homes. The owner could set any price, and you will not have a way to verify the validity of that price on your own. Those selling for sale by owner usually use rudimentary ways of coming up with an asking price including a Zillow Zestimate if it suits their needs.

Truth be told - you have better odds of spotting Bigfoot than you do of seeing an accurate Zillow home value. Some sellers don’t know any better. If it looks too good to be true, it probably is! Other sellers just pick a number out of a hat based on what they need or want for their home. One of the significant benefits of having a buyer’s agent is someone in your corner who can analyze market value for you. Overpaying is a substantial risk of buying a home without a real estate agent.