For Sale By Owner Horror Stories - Originally Posted at Cleveland Real Estate Blog
Buying a home is a complex transaction and involves an element of risk. There is even greater risk and increased frustration when someone buys a home and no real estate agents are involved. This post shows real life horror stories from buyers who bought a home without using an agent.
To begin, I understand that some sellers decide to sell without using an agent, and that is certainly their right. However, I do feel strongly that a home buyer is doing themselves a huge disservice by working directly with a FSBO ( For Sale By Owner - those selling without an agent ). Here are just a few examples of things I have personally seen happen to buyers who decided not to hire an agent:
1. One buyer found out, after it was too late, that the home they bought was not in the school district they wanted. The home was located on one of few streets in that particular suburb that did not fall into the main school district. Could you imagine having to tell your children that not only are they moving, but will be required to change schools as well?
2. A buyer encountered water in the basement of their new home. The sellers never gave the buyers the state mandated Residential Property Disclosure Form which requires disclosure of known problems. The next door neighbors, however, were more than forthcoming to the new buyers about mentioning all the water problems the previous sellers had. The buyers had to hire an attorney and spend thousands of dollars taking the seller to court.
3. Buyers of a luxury home understood up front that the roof of a home they were buying was nearing the end of it's life. After closing and moving in to the home, the buyers got an unpleasant surprise. They found out that the local association governing their neighborhood dictated that all roofs needed to be a certain type, one that cost 3-4 times as much as a standard roof. Knowing this information up front may have changed their approach during negotiations.
4. Buyers who relocated from out of state bought a home in an area they were not familiar with. After moving in, they found out that a commercial building was going to be built nearby, visible from their new home and likely to increase nearby traffic.
5. Buyers overpaid by tens of thousands of dollars. The buyer actually told me "we definitely overpaid, but we really liked the home." It is very difficult to remove yourself emotionally and make wise business decisions when you represent yourself.
A good local agent would have been extremely helpful to these buyers, not to mention save them a lot of time, money and/or inconvenience.
Listen, there are plenty of things that you can do by yourself, but buying a home should not be one of them. If buying a home is not something you do on a daily basis, why would you think you are better off navigating through the process on your own? Wouldn't having an agent, someone who does this for a living, make more sense?
Based on the examples given above, buying a home is a complex transaction and comes with risk. Buying without an agent increases your risk and puts you at a huge disadvantage, so do yourself a favor and hire a knowledgeable real estate agent, or you may end up on this list some day.
If you enjoyed this article, here are some others that may interest you as well:
Real Estate Agents Are Not Just Door Openers
Is Zillow Really Accurate? Take A Look For Yourself
How Much Can I Get That Home For?
Moving Up In A Down Market Makes Sense
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About The Authors:
Dan and Amy Schuman live on the East side of Cleveland and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.
For Ohio and Cleveland Oh real estate and homes see Cleveland OH real estate
For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235 or email.
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For Sale By Owner Horror Stories is the property of The Schuman Team and may not be duplicated or used without their written consent. ©November, 2010
Disclaimer: The Schuman Team practices real estate in Ohio. Since many states have different laws and protocol regarding a real estate transaction, we recommend consulting a qualified local legal professional prior to entering into any written agreement. This blog contains observations and opinions related to our first hand experience working with buyers and sellers in Ohio, but should not be construed as legal advice. Accuracy is not guaranteed.
