For those of you not familiar with the abbreviation FSBO, this refers to buyers or sellers who have chosen to do their transaction as a For Sale By Owner. Although this term is directed at sellers, it relates to buyers as well. Homeowners that choose to sell FSBO do so for many different reasons. Some are ex-real estate agents that are no longer licensed, some are out-of-state agents that are not licensed in Colorado, some buy and sell properties for a living (flippers, investors) and some just do not like real estate agents. Buyers can benefit from transactions with FSBO sellers as there may be less competition to purchase the home since it is not on the MLS, they can deal and negotiate directly with the homeowner and they may even find a homeowner willing to do an owner finance, saving buyers money on the cost of a loan.
Why would you use a Realtor? For Sellers, some use an attorney to draw up contracts - this normally costs between $800 to $1500. What attorneys do not provide is guidance through the process - inspection resolutions, title work, appraisal issues and HOA documents and disputes. For the same amount of money, a FSBO seller can use a Realtor that specializes in FSBO transactions to fill in the gaps that a higher priced agent would normally do. SELLERS BEWARE! Any company that charges an up-front fee to list your home on the MLS will assign you a licensed agent and you will be charged additional monies. This is just the way it is in Colorado. Buyers buying from an FSBO face certain challenges as well. Is the seller fully disclosing potential problems with the property? Did they provide all of the HOA documents? Are you getting the home at fair market value? A realtor can also help a buyer navigate these issues for a reduced fee and in many cases, get paid for these services through the seller.Visit our website at www.coloradorealty4less.com to explore how our services can benefit either side of an FSBO transaction!
For additional information on FSBO transactions, check out this article as well -