{"id":5323,"date":"2016-05-20T23:33:19","date_gmt":"2016-05-20T23:33:19","guid":{"rendered":"https:\/\/www.movoto.com\/foundation\/?p=5323"},"modified":"2016-05-20T23:33:19","modified_gmt":"2016-05-20T23:33:19","slug":"ultimate-homebuyers-guide-fsbos","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/ultimate-homebuyers-guide-fsbos\/","title":{"rendered":"What Are FSBOs?"},"content":{"rendered":"<p><a href=\"https:\/\/www.movoto.com\/foundation\/wp-content\/uploads\/2016\/05\/FSBOs_banner.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5346\" src=\"https:\/\/www.movoto.com\/foundation\/wp-content\/uploads\/2016\/05\/FSBOs_banner.jpg\" alt=\"FSBOs_banner\" width=\"600\" height=\"125\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.movoto.com\/foundation\/basics\/ultimate-homebuyers-guide-home-search\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-5393 size-full\" src=\"https:\/\/www.movoto.com\/foundation\/wp-content\/uploads\/2016\/05\/Search_thumb_22.jpg\" alt=\"Search_thumb_2\" width=\"300\" height=\"250\" \/><\/a>When a property is For Sale by Owner (FSBO), it is being listed without the help of an agent.<\/p>\n<p>Potential benefits for a buyer:<\/p>\n<ul>\n<li><b>More personal information and insights &#8211;<\/b> Usually, you\u2019re dealing with the seller\u2019s broker throughout the process, so you won\u2019t have the deeper insights into the neighborhood, the neighbors, and the property\u2019s history and quirks as you would from dealing directly with the owner.<\/li>\n<li><b>More flexibility &#8211;<\/b> Since FSBOs aren\u2019t paying a seller agent commission (it\u2019s still customary for them to pay the buyer agent), they may be more open to negotiating on price.<\/li>\n<\/ul>\n<p>Potential downsides for a buyer:<\/p>\n<ul>\n<li><b>Inaccurate list price &#8211; <\/b>Most FSBOs aren\u2019t as knowledgeable in the market and may price their home incorrectly. They could overvalue the property and be stubborn about coming down to its appropriate market value.<\/li>\n<li><b>Incomplete disclosures &#8211;<\/b> Without a real estate professional to guide them, a seller could misrepresent the home in the disclosure statement. Some states, like California, have more stringent disclosure laws and an inexperienced seller may neglect to provide all necessary information.<\/li>\n<li><b>Delayed close &#8211;<\/b> There is a lot of paperwork that goes into making an offer, negotiating, and closing. A seller on their own may not complete everything in time or complete documents incorrectly and cause delays.<\/li>\n<li><b>More work for buyer agent &#8211; <\/b>Your agent will have to be more diligent about following up with the seller, completing documents they may have missed, and track down housing data (zoning, lot size, building codes) that a casual seller wouldn\u2019t know offhand.<\/li>\n<li><b>Lack of accountability &#8211;<\/b> When the seller\u2019s agent is responsible for the disclosures, the judgment as to what is material, the compliance with permit, and lender and escrow requirements, you as a buyer are in a better position to seek recourse if something turns out to be amiss. Brokerage institutions will have financial resources and insurance to pay for problems. Conversely, you might purchase a FSBO property that turns out to have termites, but it\u2019ll be too late\u2014the seller has already taken the money and gone to Panama.<\/li>\n<\/ul>\n<h3>How to Protect Your Investment in a FSBO<\/h3>\n<p>This doesn\u2019t mean you should avoid buying an FSBO. Buying from an owner who is conducting their own sale isn\u2019t too different from buying from an owner with an agent, and shouldn\u2019t discourage you if you find a great home for the right price. You just have to ensure you cover your bases.<\/p>\n<ul>\n<li><b>Hire a real estate lawyer &#8211; <\/b>You\u2019ll want someone with extensive real estate law know-how to make sure your purchase agreement has all the contingencies you need to ensure you\u2019re covered in case there\u2019s a problem with the property and to double check all the documents you\u2019re signing.<\/li>\n<li><b>Hire an aggressive inspector &#8211; <\/b>When you get the house inspected, spring for a licensed and accredited inspector who will be especially thorough. That means getting into crawl spaces, getting on the roof, checking the condition of the fixtures, making sure all renovations or work were done with proper permits, verifying the accuracy of the acreage and square footage and property lines, and\u2014like with the title report\u2014generally making sure you\u2019re getting what you think you\u2019re getting. And it\u2019s always best to be present for the inspection and ask any questions that might come to mind. When it comes to a big-time transaction like buying a home, there\u2019s no such thing as a bad question.<\/li>\n<li><b>Ask for a Comprehensive Loss Underwriting Exchange (CLUE) report &#8211; <\/b>A CLUE report is a free report generated by LexisNexis that documents all the insurance claims the owner has made on the property. It does for homes what a Carfax does for used cars.<\/li>\n<li><b>Triple check the disclosures &#8211; <\/b>Make sure your agent is well versed in your state\u2019s disclosure requirements and checks the disclosure document carefully.<\/li>\n<\/ul>\n<table style=\"width: 100%; border-spacing: 5px;\">\n<tbody>\n<tr>\n<td style=\"width: 50%;\"><a href=\"https:\/\/www.movoto.com\/foundation\/basics\/ultimate-homebuyers-guide-listing-statuses\"><span style=\"text-align: left; font-size: 11pt;\">&lt;&lt; PREVIOUS CHAPTER: What Do Listing Statuses Mean?<\/span><\/a><\/td>\n<td style=\"width: 50%; text-align: right;\"><a href=\"https:\/\/www.movoto.com\/foundation\/basics\/ultimate-homebuyers-guide-home-search-tips\"><span style=\"text-align: right; font-size: 11pt;\">NEXT CHAPTER: Insider Home Search Tips &gt;&gt;<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.movoto.com\/foundation\/basics\/ultimate-homebuyers-guide\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-5426 size-full\" src=\"https:\/\/www.movoto.com\/foundation\/wp-content\/uploads\/2016\/05\/Hombeuyers-Guide_button.jpg\" alt=\"Hombeuyers-Guide_button\" width=\"334\" height=\"48\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a property is For Sale by Owner (FSBO), it is being listed without the help of an agent. Potential benefits for a buyer: More personal information and insights &#8211; Usually, you\u2019re dealing with the seller\u2019s broker throughout the process, so you won\u2019t have the deeper insights into the neighborhood, the neighbors, and the property\u2019s history and quirks as you would from dealing directly with the owner. More flexibility &#8211; Since FSBOs aren\u2019t paying a seller agent commission (it\u2019s still customary for them to pay the buyer agent), they may be more open to negotiating on price. Potential downsides for [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[167,260],"tags":[],"class_list":["post-5323","post","type-post","status-publish","format-standard","hentry","category-basics","category-buyer","post--single"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Are FSBOs?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.movoto.com\/blog\/ultimate-homebuyers-guide-fsbos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Are FSBOs?\" \/>\n<meta property=\"og:description\" content=\"When a property is For Sale by Owner (FSBO), it is being listed without the help of an agent. Potential benefits for a buyer: More personal information and insights &#8211; Usually, you\u2019re dealing with the seller\u2019s broker throughout the process, so you won\u2019t have the deeper insights into the neighborhood, the neighbors, and the property\u2019s history and quirks as you would from dealing directly with the owner. More flexibility &#8211; Since FSBOs aren\u2019t paying a seller agent commission (it\u2019s still customary for them to pay the buyer agent), they may be more open to negotiating on price. Potential downsides for [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.movoto.com\/blog\/ultimate-homebuyers-guide-fsbos\/\" \/>\n<meta property=\"og:site_name\" content=\"Movoto Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MovotoRealEstate\/\" \/>\n<meta property=\"article:published_time\" content=\"2016-05-20T23:33:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.movoto.com\/foundation\/wp-content\/uploads\/2016\/05\/FSBOs_banner.jpg\" \/>\n<meta name=\"author\" content=\"Movoto Editorial Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@movoto\" \/>\n<meta name=\"twitter:site\" content=\"@movoto\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Movoto Editorial Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" 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