What are the risks of purchasing property thats for sale by owner You have found what could be your dream home. The only problem is that it is sold directly by the owner who works without realtor. The question is this: Does being a "For sale by owner" house of moving your office?
There is no single answer. When you buy a home directly to a seller, you could save money. The seller did not pay the flat fee of 5 per cent of the price of the auction house. This means that the seller may be more willing to sell the home for a lower price to ask.
However, there are risks associated with buying-sale-by-owner. Stores that do not work with real estate professionals often overestimate the value of their homes. This means they will fix their initial price asked was too high. If you buy one of these houses, you could end up paying too much.
More disturbing, however, is the risk of buying a house that has serious problems that are not disclosed. Real estate agents know when they take a list they have to disclose certain facts. If flooding the basement of the house, for example, sellers are required by law to disclose this fact. If the house has lead paint, vendors should disclose. And if the house had been damaged by termites in the past, sellers need to disclose that, too.
When a house is for sale by owner, sellers often fail to reveal these major faults. Not that vendors are trying to lie. They often have no idea they are required to disclose this information. When you buy the house, then you may inherit costly problems. It is not cheap, for example, a basement waterproof flowing.
Buying a home directly to a vendor may be a way to get a good price for a house. But it may also lead you to costly repairs.
Posted on June 14, 2010.
