Dawn (253) 307-6438
Brandon (253) 732-0778
What’s a FSBO? Let Me Tell You…
What’s a FSBO? Part One – Buyer Pitfalls!
FSBO stands for “For Sale By Owner”
Why do they get a bad rap in our market? Is it really a bad idea to buy a house directly from a seller with no agents helping you to navigate the pitfalls of buying or selling a home?
There are many reasons a FSBO could go wrong. The Heilbrun Home Team has helped many buyers with buying a FSBO because it can be a very scary proposition for a buyer to try and do this on their own.
Here is a very common issue that comes up, it’s called a SCAM! In this fast paced market we find ourselves in, buyers can get frustrated in driving around with their agent or going to countless open houses on their own, finally they come across a house that has a FOR SALE BY OWNER sign out front. This is enticing, because FSBO sales do not get as many buyers typically looking at the home so the buyer automatically just thinks they are going to have a better chance of getting their offer accepted.
What happens next? The SELLER writes up the contract (red flag already because you have nobody looking out for your interests) and the seller will want you to put down some earnest money, so let’s say he’s asking for $5000 upfront for this. The willing buyer writes the check out to the seller and is super excited that finally they found their home. Typically if you are getting financing, it will take anywhere from 30 days to 45 days to get your financing in place and close on the transaction. You are getting really excited because it’s only a week from closing, but nobody can find the seller! The seller isn’t answering the phone number you have, nobody is at the house, the seller has just disappeared with YOUR $5000!
If you are a buyer looking for a home and you come across a FSBO, please do yourself a favor and have an agent represent you in this process. Scams like this and others that have to do with fraudulent paperwork to foreign deposits to fake purchases. Most likely you won’t know you are in the middle of scam until it’s too late. With the Heilbrun Home Team at John L. Scott, Orting, we have negotiated many of these deals for our clients.
Our next article will continue this series on the pitfalls of FSBO homes without being represented by an agent.
Happy House Hunting with the Heilbrun Home Team at John L. Scott, Orting!
For All Your Real Estate needs in Pierce and King County!
Dawn Heilbrun, Owner
The Heilbrun Home Team
John L. Scott, Orting
253-307-6438
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