When and if, you buy without representation, you pay more and get less than you would have, had you had an expert in your corner. You are now a Foolish but Satisfied Buyer and Owner aka FSBO. Assuming no major problems with the property in the interim, at some point you decide to sell the property. The importance of having an expert does not even occur to you. Ignorance is bliss. You put up a For Sale By Owner aka FSBO sign, paint the trim, mow the grass you're set to sell. When your energy has been depleted by "Would You Take's" verbal worthless offers, "Wild Goose Chasers", numerous Drop-ins and phone call Talkies with questions you can not answer. You are ripe for a below market sale.
Fortune 500 company executive, with a degree in real estate from a prestigious college, is an expert in his area. The company wants to build a new factory in a new city they need 100 Acres . They collects all the sales data for the last 10 years for comparable properties examine every listing. They make a low offer which is accepted, Why?. The seller knows, the experts know 3600 acres near by will be rezoned when the new sewer extension is completed next month. This will put more land with the required zoning on the market than has sold in the last five years, at half the price..
A young couple buys a new house. The builder is really cool, let's them pick everything; best price, save on the expenses big time. When they complained at having to stay in a motel because the home was not finished on time the builder through in a new up grade range. They move in and two weeks later the problems begin. Not just mechanical and structural , but mechanic's liens. Seems the the man that put the roof on was not paid.The building materials delivered to the address were not paid The upgrade appliance was not even paid for. Now there are liens against the house and it will be foreclosed on unless the new owners pay up. This bargain has cost another four down payments and their lawyer says they are lucky it could have been worse.
College Graduate Engineer buys a house at a good price in a nice neighborhood from a FSBO, whose story we do not know. But this smarter than the average engineer notices a crack in his garage and wants to get a better buy. He complains about it, so the FSBO give a small price reduction in the contract price. Two years later it is a big crack and the next winter both cars are parked outside until Spring. Seems the house was built during a construction boom, and this particular long gone builder had a cost saving method of framing over instead of filling in. Works for a few years, but because there was no ventilation the floor fell in, when the support rotted out. The Expert Realtor may not of known of the builder and may not have been experienced enough to know the feel of walking on solid fill verses the bounce of a suspended floor. However, the Real Estate Expert would of had an home inspector that would. A Real Estate Expert would not let their client acknowledge a defect in effect agree to it with out understanding what it was. Nullifying a legal claim against the seller.
Transferred Army officer finds a nice house with huge, wide open park spaces in the back One year later new super Hwy saves commuters all kind of time, but cannot sleep for the traffic and no one wants to buy it. He is stuck.The Real Estate Experts knew all about the new Hwy it was in all the local papers.
Retired Bank Executive wants to move closer to a golf course and sunshine He finds a condo with an Expert in Florida no problem she made it look easy. Rents the old home, all is fine for couple of years. When the time comes to sell, the tenants have moved out. His old friend, the neighbor next door, offers to help sell it, and will show it anytime. With all his banking know how and a trusted friend to show it why get a Realtor? Save the commission. So the old friend is armed with all the latest financing available from the owner in Florida. Tells each prospect, the numerous lookers, just how much the down and the payments will be. But they never come back. What the experts knew The local housing authority was forced by IRS, in order to keep their non profit status, to lower their income. They are offering a buy down piggybacked on FHA or VA financing making the actual interest 4% instead of 7% first time home buyers. The Banker sold his house when a young couple saw the sign and called an expert who negotiated $10,000 off the price, $4,000.00 costs and $2,000.00 for repairs paid by the seller for his clients The seller only lost 6 months rent and sold for 16,000.00 less, could of been worse. These Buyers will never be a FSBO because they know the value and they have equity when they get ready to sell.
If you do not think things like this happen then no one can help you. The above strange as they sound happened. Most experts can tell you more tales. The Foolish but Satisfied Buyer and Owner aka FSBO, rarly knows what has happened, So how can they know any better. Get an Expert here and save...
94% of FSBOs eventually list with an Agent
and of the remaining 6%, most will hire an Agent the next time they sell…
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