Tuesday, September 6th, 2022 by Amber Nestor - Broker & Profession Agent
There are essentially 3 types of property that a buyer might consider purchasing:
Actively listed and advertised property for sale under a contract with an agent. (Often referred to as "On Market Property")
Advertised property that is NOT listed with a Licensed Real Estate Agent. (Often referred to as "For Sale By Owner")
Property that is NOT for sale by anyone, but that a buyer, or preferably their licensed, experienced agent, reaches out to, in order to propose an offer that is so enticing to that property owner, that they consider selling, due to the terms of the offer being so appealing.
This article will briefly discuss the dangers, just a few of them, of purchasing property for a "For Sale By Owner".
It will also discuss how attempting to do this WITHOUT an agent can harm you.
Experienced, licensed agents, and top level agents which are Brokers, like myself, practice real estate full-time and overtime, and are often investors ourselves. We deal with the intricacies of contracts, research, verifications, negotiations, deeds, zoning, rules, regulations, and much more every day, year in and year out, through economic ups, and downs. We are a wealth of wisdom and knowledge, and there are SO MANY ways that we can help protect a buyer in these situations.
For example, having a great deal of knowledge about the markets, and being able to deep data analysis on a daily basis of the land and home inventory in a large region (in my case, I study the entire Eastern Half of TN), I am able to understand with a great deal of accuracy if a listing price is fair, competitive, high, low, or just right. Not only that, but because I am not myself the seller of the property, and my interests align with yours, when you succeed, I fight to find you the best property for the most reasonable deal. Whereas the seller is fighting to convince you that you should buy their property, for the highest price possible, and discourages your discovery or consideration of any other options.
A wise agent will tell you, "unless you are in an emergency situation, or really need to move quickly, or truly feel you might never find a property like this one again, then be patient, and do not rush into a purchase, EVER."
Rushing into a purchase only increases the chances that you might miss out on an opportunity to better negotiate, learn, or consider options that might be better for you.
The good news for buyers right now is that things are slowing down as a result of the skyrocketing interest rates. This means property is not selling as absurdly quickly as it was during the past couple of years. This gives you more time for inspections and negotiations, and sellers must face the reality (IN THE HOME SELLING MARKET MOST OF ALL) that the cost to borrow is through the roof in comparison to the past 2 years, and this will ultimately give buyers more bargaining power, and get them better prices in some cases. Those who are NOT depending on loans to pay for their purchases will obviously benefit the most in this current market, because they will have better purchase prices, and avoid the nightmarish interest rates.
Buyer's can create a contract to work with a buyer's agent which spells out their goals in detail, and this is great way to make sure you have someone working to achieve your goals. Otherwise, you are "going it alone" with the seller, and that might not go well.
Thank you for visiting. I pray God blesses you with health, wealth, and wisdom.
Amber Nestor - Broker for Land and Homes in Tennessee