Dear Olivia,
I’ve seen a couple of homes that I really like that are for sale by owner. I’m not really interested in representing myself in buying an FSBO, so can a Realtor help me?
Sincerely,
Needing Help to Buy
Using a Realtor to help you buy an FSBO home is a unique proposition. It can be done – and has been many times before – but there are a couple of caveats that you have to consider.
First, buyer’s agents and seller’s agents usually split the commission when a home is sold. The commission is typically paid for by the seller. This means that when you buy a traditional home with a Realtor, they get paid by the seller, not you.
This means that when a home is for sale by owner, there are no commissions on the sale – at least unless you ask for them. Usually, sellers that are trying to sell their homes themselves are doing so to eliminate the commission they’d have to pay if they hired a Realtor to do all the hard work for them.
This brings me to the second caveat – your buyer’s agent won’t want to work for free, so you have to figure out a way to pay them. This is usually done by paying their commission yourself, asking the seller of the FSBO to pay your Realtor’s commission, or splitting their commission with the seller.
Of course, these caveats are related because if someone is selling their home themselves to maximize how much money they can make off the sale, they might not want to pay for part or all of your buyer’s agent’s commission.
In reality, though, many FSBO sellers understand how beneficial it is for a Realtor to represent a potential buyer. After all, Realtors will ensure that the buyer is qualified, that the paperwork is in order, and will be communicative to the buyer and the seller throughout the process.
Besides, many FSBO sellers are happy when Realtors bring them a potential buyer – it means they could be one step closer to selling their home!
So, yes, you can use a Realtor to buy an FSBO property. And doing so is a smart choice because a buyer’s agent is responsible for representing your interests. When buying an FSBO property, there can be some unknowns, so having a Realtor that represents you is an excellent choice!
As with any real estate transaction, buying an FSBO property can take a while to complete. But your Realtor will stay on top of the various tasks required to bring the transaction to a close – like scheduling inspections and arranging title commitments – that way your home buying process is as stress-free as possible.
If you need a Realtor to give you advice or to represent you in buying an FSBO property, feel free to give me a call at 307-856-3999!
~Olivia