Kew Gardens Real Estate 101: For Sale by Owner Vs. Brokers

FKew Gardens Real Estate 101: For Sale by Owner Vs. BrokersThere are benefits and hurdles when purchasing a home directly from the owner as oppose to purchasing it from a real estate agent handling the property. The differences between the two should be studied and weighed before embarking on a real estate purchase. Here are the differences you face when purchasing from a FSBO versus a broker.

Handling Contracts

A real estate broker will be experienced and knowledgeable in dealing with contracts. They often follow a certain template and make slight changes to it if necessary. When purchasing from a FSBO either they or you may have to enlist the help of an attorney to make sure that the contract serves both your best interests. The contract must be valid and legally binding.

Communication

When purchasing from a broker, they act as a middleman, making the process longer and more time-consuming. They need to interpret what’s important to you versus the owner. When you purchase straight from the seller, they’ll likely be able to respond to you faster, more directly, and give you a more personal feel for their home. The owner will likely be emotionally attached to their house and give you more personal details about it, you can ask questions a realtor may not be able to answer.

Negotiations

A real estate agent will have more experience with negotiating than a home owner. They may even be reasoned with, while a homeowner’s judgment could be clouded by their attachment to their home. An agent is also experienced in determining whether or not you can afford the home by checking your credit score, finances, and mortgage approvals. If the house requires repairs you may have better luck bargaining this down with an agent than you do with the home owner.

Pricing

In a case where you are absolutely sure of the value of a home FSBO can become a huge advantage. Saving the fees of a real estate broker will translate into a huge discount on your purchase. The reality however is that when purchasing from a FSBO, the pricing of the house may not accurately reflect current market prices or its true value. It is difficult to determine a home’s value without the proper research and comparisons to previous sales. A real estate agent has access to this information. Even if you do your research and compare house prices within the vicinity, it’s still difficult to tell if the houses are overpriced and if they really do sell for that price. Every home has its own unique features and benefits. The materials used to construct the roof, bathroom, or kitchen can severely affect its value as well. If you purchase a home from a FSBO you are taking a gamble on the actual value of the house, whereas from an agent, you can be somewhat assured that you are purchasing close to its true market value.

Whether a real estate agent is involved or not finding the right home for sale and closing on it is not a simple process. You will want to have as many professionals involved as possible. Make sure to hire a professional to inspect the house and make sure everything is in order. Hire a good attorney to draft or check the contract of sale. Purchasing a house is a huge investment and you don’t want to risk losing money because of rash decisions. Consider your options and seek the advice of professionals.

If you need assistance finding a home for sale or selling your existing real estate call Asking Price Realty at (718) 997-6000.

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