Buying a “For Sale By Owner” in San Diego? 3 Things You Should Know
You have decided to buy a home in San Diego and are working with an agent/Realtor but are also probably searching for homes for sale on Realtor.com, Zillow and Trulia, just to name a few sites.
Most of the homes you see are listed with Realtors however; you do come across a few homes that are “For Sale By Owner.” What do you do?
Call Your Realtor
99 percent of the time the home sellers will work with Realtors that bring them a buyer and will compensate them. Calling your Realtor is the first thing that you should do, informing them that you found a “For Sale By Owner” and you would like to find out more information on it. Sellers know that home buyers are saavy these days and are most likely are working with an experienced Realtor that will help them through the process of Buying a Home. A buyer’s agent is working on your behalf and will advise you as well as be the buffer during what can be an intense negotiation. They will work through the hurdles that typically come up during the inspection and loan contingency periods.
What Does The Seller Have To Disclose?
Just because it is a “For Sale By Owner” does not mean that the rules of Selling a Home in San Diego is different than any other sale. The seller still must give you full disclosures about the property. There is still an Escrow Company involved and also a Title Company. The Title company will do a title search and make sure that it holds clear title and there is nothing affecting it while the Escrow Company will hold on to your deposit and handle the funds and the recording once the transaction is completed. Unfortunately, not all sellers know that process so having a good Realtor on your side will protect you. Your Realtor will know exactly what to ask the seller and what forms the seller should sign. Make sure that you ask a lot of questions and you and your Realtor do your due diligence regarding disclosures, permits, repairs, etc. Knock on the neighbors doors and ask questions about the neighborhood and even about the home that you are thinking of buying. You will learn a lot from speaking with the neighbors.
Are You Overpaying For The Home?
Sellers that try to sell their home themselves do so for many reasons. Some may not have equity in the home and think that they cannot afford Realtors commission. Some think that they can do a better job and don’t think that they need a Realtor. With this being said, some think that their home is worth a lot more than what Realtors have told them and so decide to do it themselves. For whatever reason, this does not matter. What matters is that you are aware of the market conditions and what comparable homes nearby are selling for. Your Realtor will know exactly what homes to compare this home to and give you their opinion on what the home should be priced at. When the home is priced too high and you are not able to get the seller to become realistic it is better to move on to another home as this seller will have to stay on the market for quite some time before realization sinks in.
If you have any questions regarding buying or selling a home, contact the McT Real Estate Group. We can help you through the hurdles.