Buying a home is a big step. But not only do you have to find the perfect property, but you also have to decide if you want to opt for sale by owner properties. Honestly, there are pros and cons to doing so.
If you’re unsure whether or not you should purchase a for sale by owner home, we’ll break down the advantages and disadvantages below.
The Pros of Sale by Owner Properties
If you’re on the fence about whether or not sell by owner properties are right for you, take a look at the benefits of buying these types of homes:
No Agent Fees
If you’re looking for a way to save money during the buying process, this is it. When buying a house for sale by owner, one perk is saving money on agent fees. Usually, the buyer’s agent and the seller’s agent get at least a 3% commission from the sale of the house.
However, since the owner doesn’t need those agents, they can sell the home for less money or be willing to negotiate a really good price.
Working Directly With the Homeowner
When you’re dealing with an agent, there’s usually a third party in the middle of everything. However, a for sale by owner transaction lets the buyer and the seller communicate directly. In fact, most people actually prefer to talk to the homeowner than have a third-party person involved.
By having in-depth conversations, the potential buyer can learn all they need to know before sign on the dotted line.
The Cons of Sale by Owner Properties
Now that you know all of the good stuff about these types of properties, here are some of the not so good things:
One of the main perks of using a real estate agent is utilizing their knowledge. They’re familiar with homes, they understand the real estate market, and they know what they’re doing.
On the other hand, a homeowner doesn’t. So as you’re going through the home buying process, you may not get the results that you want simply based on the seller not understanding how to handle things.
Another disadvantage of for sale by owner properties is that they are generally not priced correctly. Real estate agents have the proper resources for them to run a comparative market analysis on homes. That’s something that a seller doesn’t have access to.
There’s also a lot of paperwork involved in selling a home. If neither party has a real estate agent, the paperwork can get overwhelming. There are so many contracts and papers to sign, that it can make the process a lot more difficult.
If you’re still interested in for sale by owner homes, discover more here.
Buying for Sale by Owner Homes
As you can see, there’s a lot to think about when buying sale by owner properties. It has its pros and cons, so you have to decide if the good outweighs the bad.
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