A few weeks ago I was invited by MoneySense magazine to do an interview regarding the purchase of a for sale by owner property and the role of a buyer's Realtor. The resulting Money Sense Magazine article comments on some of the topics we covered.
I have assisted folks view and purchase for sale by owner properties in the past, but honestly it can get a bit tricky sometimes so I thought I should elaborate on the article. The first part is about representation.
As a buyer you have a choice in how you purchase property. You can go on your own from listing agent to listing agent or for sale by owner listing and work it out yourself. Or you can choose one Realtor to represent you and they assist you in reviewing homes, showing homes, negotiations, research and finalizing your sale.
The benefits of working with a Realtor include:
1. It is most often free to the buyer. Sale commissions are paid by the seller with a portion of the commission going to the buyer's agent on sale. Most for sale by owner listings will also pay a buyer commission. In the odd case where they don't then you need to work out buyer commissions directly with your Realtor.
2. A buyer's agent or Realtor represents you. Your Realtor holds your personal information in confidence and works with you to find the right property. A listing agent's job is to sell a particular home. Your buyer's agent is to make sure you know what you are buying and at what value.
3. A Realtor has the training and experience to review property details and provide you with a comparable market evaluation so you have more knowledge on the value of a property. Your Realtor will also review property title and look out for potential issue such as Dower Rights in Alberta, Real Property Report Issues, title registrations and other details which are costly if discovered too late in the purchase process or which can delay your access to your new home.
4. Buying a home can be an emotional experience. It is also a very large financial investment. Why wouldn't you seek outside help from an experienced Realtor to assist you through the process? Or are you prepared to manage negotiations, contracts and legal details on your own? Negotiations can be tough. An experienced Realtor knows the tactics and antics and how to best manage them to your best advantage.
5. In the case of buying a for sale by owner property there is also the added challenge that some sellers do not know what is required to sell their home. Nor has there been any property verification, measurements verification, title review, property financial review, permit review, identification, or other vetting by a listing agent. I believe it is even more important in such cases to work with qualified professionals such as Realtors and lawyers to ensure your purchase completes smoothly.
I have worked with many buyers and look forwarding to hearing from you as you pursue your next home purchase.