Buying Homes Not Listed In the MLS
Some sellers choose to sell their house in a way known as “For Sale by Owner” or FSBO. Not many real estate agents openly advertise these homes because there is the possibility that they will not get paid for these transactions. Why?
When a home is listed for sale in the MLS, a buyers agent commission is posted. That means that the listing agent is going to pay the buyer’s agent. But when a home is not listed in the MLS, there are no guarantees that the buyer’s agent will make a commission.
Some buyers think that by using the listing agent (agent the seller is using) they will save some money. This is not the case. The listing agent is just making double the commission in this case. And you, the buyer, have the disadvantage of having no representation at all since the listing agent works for the seller.
Because of this, many FSBO homes end up being overlooked, and you might miss out on your dream home. If you find the home you think is the one, and then come to find out it is a FSBO home, you should still take an interest and determine if it is absolutely what you are looking for.
In this case, we would still move forward as we would with any other home purchase. We would make an appointment to view the home, and then you could decide if this is the route for you, or if you want to continue your search.
If you do find your dream home, and it is FSBO, having a representing agent can help you navigate through the purchase process. This is even more important because FSBO tend to be listed on the higher end, because sellers want to make top dollar by eliminating the additional use of a realtor. An experienced realtor can help you negotiate the best deal.
In the end, many times these transactions go just as smoothly as any other of the options, and everyone walks away happy. Don’t lose out on a great opportunity because of another agent’s fear.
Have you already found a home you think might be the one but then discovered it’s FSBO? Schedule an appointment today so we can discuss your options.