For Sale by Owner

Does it Really Work to Obtain Savings Or to Just Buy You Troubles?

for sale by ownerSaving money is important for every consumer. For this reason, they try to find a way to reduce costs all the time. They do this even to the point of performing things by themselves to minimize spending.

This is not an uncommon scenario, especially in home selling.   The purpose of this saving money, they have opted to sell properties by themselves. This act is called “For Sale by Owner”, or simply FSBO.

The selling  process can pose great risks when doing transactions, not only for the seller but also for the buyer, especially in another country with many different laws to the seller and buyer.

Reasons behind FSBO

It was already mentioned above that For Sale By Owner is conducted for the purpose of savings. To obtain that, they eliminate the services of the Real Estate Broker costs, which are 6 % of the purchase price.

Another reason is that sellers think that they are the only ones who can look out for their best interests. Some of them are skeptical towards the attitude of the broker in selling. They think most of these agents are more concerned in disposing the property (to earn their commission) rather than selling their homes at its best prices with the best terms and saving the seller money.

Possible Risks in FSBO

While many sellers that eliminate the service of the Real estate broker/agent results into savings.  Doing so can mean disaster for the seller and the buyer. Real estate transactions are complex, especially in Mexico. Any inexperienced sellers might end up doing the wrong thing. Thus, putting oneself into trouble and risking the smoothness in the flow of the transaction.

To let you see the risks, here are some things to think about:

1. Since for sale by owner eliminates the service of a real estate agent, the seller will not have an access to the Multiple Listing Service.   The MLS gives ALL MLS agents the availability to see and show your home, so the seller has a larger pool of BUYERS.   Real Estate agents will not show your home to their buyers when listed as a FSBO.

2. Selling without an agent involves very hard work. No one will be there to give you assistance and go for an extra mile to guide you with the process. Without their services, the sale of property may result into chaos.

3. Most sellers do not know what they are doing, especially in Mexico or familiar with the Mexico Laws.

4. The right pricing is not achieved. Some sellers, who are of course the owner of the house, may be personally attached  to their homes. Therefore, they may price their homes with consideration to their personal sentiments and over price the home. Any emotional investment might be counted for in this case. That can be irrational. In fact, some of them may not know that proper pricing is achieved with the right comparison like use of Comparative Market Analysis. Thus, most buyers think their houses are overpriced.  Buyers out looking at For Sale By Owners are looking to get a bargain and are trying to save them money also.  They will bargain the seller and since the seller has not had any interest he will more than likely accept less than what he can get if he placed it on the MLS with a whole pool of buyers, even taking the consideration of the commission and the savings of the agent negotiating skills.

6. Buyers are unaware of the Laws of Mexico and the correct procedures of purchasing in Mexico.

7. Not all sellers are fully equipped with the knowledge of fulfilling their role in selling their house. This could result in failure to meet the stipulations in the purchase contract.  Paying too much for Capital Gains and the buyer paying to much for closing fee’s.  Who is looking out for who’s best interest?

Everyone should face the fact that a successful home selling transaction cannot be achieved by a week’s work of research and consultation. Besides, most people do not have the time to do things on their own.

FSBO may give you one financial advantage and it is quite understandable why you want this. However, if you are less knowledgeable about how real estate works here in Mexico, it may lead to additional problems. Not to mention, houses may take forever to sell.

Selling a house requires experience, and if you are someone who does not have it, do not risk selling your property by yourself. Ask a   professional to help you out.   Hire yourself a reputably SCMAR MLS Real Estate agent to represent you and market your property for sale.

CONTACT THE SELLING TEAM NOW!

Pam Brame & Tammi Miller

The Selling Team

 

 

Swim in the ocean of Buyers or swim in the fish bowl,

the decision is yours.


FSBO-FISH

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