Many buyers think that purchasing a property from an ‘unrepresented’ seller, without buyer representation, will save them money on the overall cost of purchasing a property. Sure that can happen. But it can also cost you more.
Most of the time ‘unrepresented’ sellers actually have their property priced above market because they don’t have the correct data for pricing to ‘today’s buyers’. Most of the ‘unrepresented’ sellers get their pricing from either what they ‘need’ to get out of the property to cover their mortgage, PLUS the profit they want (profit? in this market? ha), OR, they have priced their home based upon the rumors spreading throughout the neighborhood from other home sales. I’m sure none of my readers have ever done this, but people are know to exaggerate what you tell your neighbors.
Even outside of asking price, not following the ‘represented’ process managed by a licensed REALTOR, can cost you greatly when it comes to hidden or unknown issues of the home, title problems, survey problems, etc.
And don’t forget about seller concessions, and negotiating skills. Not knowing the ‘game’ could cost you thousands!
Most of the time, when I represent a buyer who is interested in a FSBO, I am able to get the seller to pay my real estate fees for the buyer. Yes, I represent the buyer, protect the buyer, manage the buyer process….and get paid by the seller. It’s a great thing!
Here is the recent letter that I sent to a potential buyer who was looking at an ‘unrepresented’ property, or commonly referred to as a FSBO.
I am Elizabeth’s real estate agent, and she let me know that you have been looking at a for sale by owner property. If you are interested in representation for that transaction, I would be glad to assist. At this point, the seller may not pay my real estate fees (but I will definitely ask). I guarantee you that I can save you money on the purchase. We can work it out so my real estate fees will be less than the amount of money that I can save you on the purchase of the property. This way my representation is no cost to you, but provides you the full legal protection and guidance. With my pricing & market knowledge, along with my negotiating skills, I promise to save you thousands of dollars on the purchase. Plus, I have all the legal paperwork and will manage the entire transaction for you to make sure you get clear title to the property without any problems.
Yep, I said it, and I meant it. If I don’t get the seller to pay all my representation fees, I guarantee that I will save my buyer more money on the ‘unrepresented’ property than they will pay me in my service fees. Guaranteed! How can I do this? I’m a professional, and I know what, when, where, why, and how to ask. I also know what to do to protect my buyer’s interest when it comes to some of the hurdles – repairs, title, survey, financing, etc.
How about this? I guarantee to save my buyers at least $5000, or I will actually pay my buyer $500. Either way, my buyer wins!
Why am I writing this? I am in the process right now of helping a young family purchase an ‘unrepresented’ home. Guess what? Saved them $6,150! Oh yeah, the seller paid my real estate fees.