There can be a certain appeal to Fort Lauderdale luxury homes with a “For Sale By Owner” sign in the yard. For many it might conjure thoughts of a direct and unencumbered relationship with the homeowner. No middle man, just straight talk and fair dealing with the person in charge, perhaps ending with a handshake. In many scenarios, dealing with the person in charge can be beneficial. For example, when recommending a restaurant to friends, saying you know the owner ofter strengthens your endorsement.
When you pass by a luxury home with a sign announcing it is For Sale by Owner — also known as a “FSBO”—you wouldn’t be alone if you were tempted to walk up to the front door and knock. Theoretically, buying a home directly from its owner should be the easiest way to negotiate a low price and the quickest way to seal a deal.
While those assumptions might seem sound, the reality is homes being put up for sale by owner represent a temptation that many experienced Fort Lauderdale luxury home buyers know to avoid.
Three reasons experienced home buyers avoid For Sale By Owner homes:
1. High Sales Price
A popular reason homeowners choose to go the For Sale By Owner route is they want to avoid paying real estate sales fees. These fees are usually about 6 percent of the home’s selling price, with 3 percent going to the seller’s broker and 3 percent going to the buyer’s broker. In addition, For Sale By Owner homes often come with a higher price tag. Either the owner isn’t well-skilled at determining the fair market value, or the owner feels their home is worth more than the market dictates. In fact, some For Sale By Owner signs are erected because the owner didn’t agree with a real estate professional’s comparable market analysis.
2. Missing Information
Florida, like many other states, requires sellers of residential properties to make certain disclosures to buyers about the property’s condition and history. Unfortunately these disclosure laws are not getting any less cumbersome. Home sellers not familiar with the laws might innocently (or not-so-innocently) fail to fulfill their obligations. If significant, undetected damage or pertinent history is not disclosed, the buyer could end up with an unexpected bill to remedy the problem. Sure buyers might have legal recourse. However, the process can be long and expensive.
For more information about disclosures required under state law, visit the Nolo.com website.
3. Inconvenience
Fort Lauderdale luxury home sellers who opt to avoid the services of a real estate professional must take on all of the responsibilities that come with selling the property, in addition to whatever is going on in their daily lives. Their time and experience can often become road blocks. When both parties leverage the services of a trained professional, milestones in the selling process are handled in a more predictable manner (i.e. scheduling home tours and inspections).
With so many drawbacks associated with For Sale By Owner homes, it makes sense for buyers to focus instead on properties sold with the assistance of professional real estate agents. The next time you see a FSBO, cruise on by and contact us instead! We have access to all the homes listed for sale by real estate professionals. Plus, we can help make your home buying process much easier.
