What is a FSBO?
A FSBO (pronounced fizz-boh) is a house that is on the market “For Sale by Owner.” This means that the owner has decided not to hire a Realtor to sell it for him - he intends handling the entire sale of the home by himself. Be forewarned - he also intends to do all the paperwork himself.
Sometimes, FSBOs happen to be retired Realtors wanting to save themselves the home selling fee - typically 6% divided amongst two Realtors - the buyer’s agent and the seller’s agent.
As a buyer going into a FSBO however you should remember that most FSBOs are overpriced. Because the seller has usually not spoken with a Realtor, he has not had the conversation of comps in the neighborhood and is probably asking more than the home is worth. Secondly, since he does not have an agent guiding him regarding the legality of certain structural issues, he might not be revealing things about the house he knows to be an issue. These might come back to bite you later.
Obviously, my recommendation is to stay away from FSBOs, but if you must buy one, get a good property inspector, an independent general contractor to examine the property (yes, both!) a pest inspection and hire your title company to make sure the paperwork is processed correctly. Take no chances and put in writing every assurance the seller gives you about the home.
