This is a touchy subject to address. I really don't want
to discourage you as a buyer from pursuing a home in Alton for sale by owner [FSBO] .
I also do not want to see a FSBO take advantage of you.
I have assisted buyers purchase Alton homes for sale by owner in the past successfully, with my "win-win" style of negotiating. One problem you'll encounter is you may
be dealing with an "Aggressive Negotiator"
In other words, the only
negotiating the seller has ever experienced in
is purchasing a new car
at a dealership. That's how you'll be treated...
The biggest myth: Buyers will save money if they buy a FSBO... That's
not always true. A seller calls three real estate agents to obtain market
value for their house, let's say the seller determines the house is worth
$225,000 and out of that the seller has to pay out $13,500 to the brokerage
firm, and then net $211,500.
So the seller chooses to FSBO @ $225,000 and then sells
the house, thus saving the commission.
Notice the Seller saved the commission, not the buyer.
Two parties cannot save, but only one...
If you buy a FSBO consider subtracting the commission from the list
price and then start your negotiating. Remember, you're not getting a
bargain if the price is hyper-inflated from the get-go.
Builders might do this too. For example, a builder is selling spec homes
for $215,000 through a local real estate broker. The builder tells you
"Hey, if you buy directly through me, there will be no sales commission".
So you say something like, "that sounds good, we are very interested" and
end up paying $217,500 for the same house... Do some research within the
subdivision, see what the same floor plans have sold for.
Builders are professional For-Sale-By-Owners.
Now let's talk about contracts.
I had a past customer call me a few months ago, she told me they wanted
me to sell their house, they had found a FSBO. She went on to say that
"the seller had a friend who was an attorney and he would draw up a
contract to complete the agreement." (for free)
I warned her of the strong possibility of one sided bias the sellers contract
could have. I asked her to read it to me. In my opinion, it was clearly on
the sellers side. Everything protected the seller, very few things were in
the buyers interest, several things were not mentioned. Contracts are like
insurance policies, you want content, clauses, remedies, solutions, rules and
guidelines to get through the purchase with no damages and to obtain what
you set out to buy.
I was able to put the transaction together, as their buyers agent, I provided
them with an offer to present to the seller. A fair "win-win" format, I simply
used a contract provided to me from our local Board of Realtors®. The sellers
did not get "every-little-thing-they-wanted", but they sold their house.
It would be like a nasty divorce.
Fighting with your spouse, using the same attorney.
You notice things aren't going your way...
Then you wake up and realize the attorney has been a "friend of your spouses
family for years" In fact, your soon to be ex-mother-in-law is the one who got
the lawyer involved.
If you were getting sued, would you consult advise
from the Lawyer representing the person suing you?
If you find a FSBO you are interested in and want BUYERS AGENCY
Representation Tell the seller I will write the offer on a Board Contract
for a $1750 fee (charged to the seller).
Contact Rich Anderson  288-3992
We Can Email Restrictions For The Alton Subdivision You Are Considering Purchasing.
(Include MLS# or Address or Name of Subdivision in Alton IL.)