We’ve been looking at buying a For Sale By Owner; what pitfalls should we watch out for in our transaction?
As a buyer of a FSBO, always remember that you do have the right to be represented by a real estate professional even though the seller has chosen not to. Sometimes—especially in a buyer’s market—the seller will even be willing to pay a commission to your agent in order to get the deal done. Whether you hire an agent or not, here are just a few things you should look at before making your offer:
- Check comparable sales in the area to make sure your purchase price is reasonable and that the house will appraise if you are getting a loan.
- Have your attorney look over the contract to ensure that everything spelled out there is legal and enforceable – if a Realtor is representing you, you will have access to standard Tennessee Association of Realtor forms which are reviewed by lawyers annually.
- When you write your offer be sure to include contingencies that allow you to walk away from the deal if you are unhappy with the results of a home inspection, your financing falls through, etc.
- Get a Tennessee Residential Property Condition Disclosure from the seller. This disclosure spells out all known defects in the property and is required by Tennessee law to be provided by all sellers who within the past three years have lived in the home they are selling.