Thursday, October 3, 2019 / by Gianfranco
Thinking of buying a for sale by owner? Think Again!!
That’s what most realtors would tell their clients. But there are those of you who like the thrill of negotiation so if you are going this route, then you should read the rest of this. We will share some valuable tips.
We're going to talk about six reasons why you should reconsider if there's a For Sale By Owner property you want to buy. There's a variety of reasons and maybe this might offend some people, but I think it's worth talking about. What are some of the reasons?
First of all, are you for sure it's a legit For Sale By Owner? Make sure you do your research, due diligence, and make sure they're actually the owner of the house. Or it's a For Sale By Owner because someone who rents the house could be selling it as a For Sale By Owner and how would you find out if you're not doing your proper land registry research of the background of the property.
If you are going to somehow get yourself into that situation, make sure you have the documents, and everything reviewed by a lawyer before you finalize anything. Put a clause or condition in there that allows you to review it with your lawyer. It's very important.
The second reason is you need full disclosure. Make sure you get all that info or have your lawyer review it. This is also another thing you want to make sure you review with your lawyer. There's a lot of legal factors that take into place when you're buying a For Sale By Owner. If there's no one representing you on each side, then really there has to be a lawyer in the middle, but a lot of times lawyers charge an arm and a leg and you may want to look at all factors.
Are you a skilled negotiator? If that's what you do for a living then that's different, but there's going to be different parts of the process where you're going to have to negotiate whether the price, the terms, the conditions, some of the items in the house that comes along with it. And even if you are a good negotiator for a living, like maybe if you are in sales for a living, maybe you sell furniture, but does that make you an expert in real estate negotiation? We think that comes with experience. A seasoned real estate agent will be able to negotiate a sale of your property a lot better because he or she has had much more experience, different deals.
The number four reason is, is it a money issue? If the seller is selling it as a For Sale By Owner, why are they selling it like that? Are they trying to save money? Are they strapped for cash? What happens if in the course of the process in the negotiation there's some inspection issues pop up and now you need the seller to repair these things or cough up some money to fix it? Are they okay to do that? Is there enough money? Or worse off, what if they're not disclosing the fact that there's not really enough money in the deal to cover their mortgage? So, they may not be able to close. There's a variety of reasons. That goes back to number two again.
And number five is, are you actually ready to deal with the homeowner all the time? Sometimes that can be pleasant and fun and sometimes that can be surprising and exciting. There's a lot of reasons you'll have to get in touch with the seller during the deal, after the deal, to renegotiate inspection or repairs and viewing the property, showing it to your family and friends, doing measurements. And if you have to deal with the homeowner, if they're not very cooperative, you're going to have some issues. So, you may want to consider whether you're ready for that.
The next thing is what's the time frame? So, do you know what the seller's time frame is and are you able to leverage that to your advantage and be able to kind of make that work for you in your favor? These are the six things that you should definitely reconsider before you pursue buying a For Sale By Owner by yourself.
If you have a real estate agent representing you that's a different story, but at the least make sure you have a lawyer reviewing your documents.
If you're thinking about making a move in the next three to six months and you would like somebody from our team to help you with the purchase or sale of your home, you can just call 647-977-9752 or you can go to our website at www.torontoplatinumteam.com and somebody from our team will reach out to discuss your plans and what the next steps will be.