A lot of people these days are trying to sell or purchase a home without the assistance of a Realtor.
I’m going to take a few minutes today to explain to you the process of how to approach a home that is a For Sale By Owner or FSBO and why it is imperative that you get connected with a Realtor.
Most sellers believe they can sell their home without hiring a Realtor, so they stick a “For Sale” sign in their yard and wait.
Unfortunately for them, once a buyer shows interest, one of them will have to be represented in the transaction.
This can be achieved by one side hiring a lawyer or one or both sides having a Realtor to help the process.
In Wisconsin, at least one party must be represented in a home sale transaction.
If it’s the buyer, would you rather have someone that knows Real Estate Values and Laws or just the law?
Most buyers believe the Realtor is working for them, this is not true.
The truth is, if you do not have a Buyer Agency Agreement with the brokerage with whom the Realtor works with, they have no obligation to tell you numbers or help with strategy.
In truth, if they do share the numbers, they are breaking the rules.
Additionally, they are working in the Seller’s best interest so if you are overpaying, they are not obligated to tell you.
I would be happy to speak with you and explain in further detail how Buyer Agency works at a future time, but for right now, let’s just concentrate on FSBO’s.
When you come across a home that is a For Sale By Owner, please take down the number and address and immediately contact myself or another trusted Realtor.
Explain to them that you want to see this home and that it is a “FSBO”.
The Realtor should immediately call the Seller and get some info on the home and find out if they are willing to work with a Realtor.
If they are that's great.
They already understand that someone will need to be represented and are willing to discuss options.
This is how I handle the process of getting in a “FSBO”.
As a Realtor, I can either sign a Buyer Agency Agreement with you and get you in the home or the Seller can sign a One Party Listing or both.
If the Seller states that they are not willing to work with Realtors then we need to handle this a bit differently.
First, I tell them that in a Wisconsin home transaction, one of the parties must be represented by either a lawyer or Realtor.
I continue by telling them that any buyer that has interest in this home will either need to lawyer up or retain a Realtor to write an offer.
If the buyer consults a lawyer the seller can expect a lower offer and a buyer that may not know the current value of the sellers home.
In turn, the seller may also be leaving money on the table due to not accessing the help of a local Realtor.
If the buyer hires a Realtor to represent them and write the offer, the Realtor’s brokerage will ask for a commission for handling the transaction.
This will either be 3 to 4% normally.
Secondly, the seller would still have to hire a lawyer to handle his or her side of the transaction.
Most sellers upon hearing all of this immediately agree to working with us and ask when the buyer wants to see the property.
If you have further questions about this scenario or any of the many that come up in our business, I am happy to speak with you confidentially and see what works best for your situation.
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Thank you for watching. I can be contacted at firstname.lastname@example.org.