There is a small but growing trend of home owners selling their own homes directly. The motivation is the money saved by doing the work themselves rather than paying an agent. But as a buyer, is it a smart idea to buy from someone who is selling their own home?

Real estate agents get paid a percentage of the commission because of the work they do for the seller, but more importantly, for their knowledge about the home buying and selling process. Because sellers are attempting to sell their own home in order to hold on to more of their equity, it’s not likely that buyers will see any savings when working with a sell-it-yourselfer and there are potential dangers as well:

Fair Value: A homeowner is likely to feel that his or her home is more valuable than the market dictates and may therefore overprice the home. Those selling their own homes lack the objectivity of a real estate agent and often base the price on emotional factors.

Hidden dangers and damages: A real estate agent working with a seller is well aware of the questions that buyer’s agents like us will ask when considering a home to show a client. We’ll ask questions to flush out any hidden damages or necessary repairs that may make the home a bad buy. Because most homeowners don’t consider these questions, they often haven’t prepared the home so that it is in the best shape for the buyer.

Commitment: Because someone selling their own home has not entered into any binding contracts with a real estate agent, there are no real penalties for that person should they decide at the last minute that they don’t want to sell the home. If a seller with an agent backs out of the selling agreement, they are responsible for any fines laid out in the contract and face small claims court. However, a seller who is not in a contract with a real estate agent could take the home off the market without any real repercussions after you’ve already invested a significant amount of time.

Legal contracts: The process of transferring a home is a lengthy and complicated process—one that requires quite a bit of training and experience to master. You’ll need to ask yourself if you’re willing to start this process with someone that is unfamiliar with or has only limited experience with this process. A good buyer’s agent will ensure that you are covered contractually, but the process could be lengthier or more complicated than necessary if the other party is unprepared.

You can avoid getting caught up in a bad deal when you have a buyer’s agent on your side. We ask sellers the tough questions necessary to filter out risky buys before we introduce you to potential housing options on the market so that you can feel confident that any option you choose is a sound buy.

Tags: Triangle Real Estate //