Buyer Risks in For-Sale-by-Owner (FSBO) Transactions

Risk 1 – You Are Entering a Transaction with No Representation.  For-sale-by-owner sellers may engage in questionable selling practices and make unreasonable claims or demands.  Many times, buyers and sellers don't trust each other and this mix makes a successful transaction difficult, if not impossible.
Remedy – Realtors® abide by a strict Code of Ethics and professional conduct standards. They have an obligation to serve the best interests of their clients by providing professional information and guidance on the current housing markets, pricing and more.  Serving as skilled negotiators, Realtors ensure that buyers and sellers “play by the rules” throughout the transaction.

Risk 2 – You Could be Responsible for Costly Structural/Environmental Issues.  Because for-sale-by-owner transactions are largely unstructured, a seller may not always disclose all structural problems or potential costly environmental concerns such as a leaking underground oil tank.
Remedy – Realtors are required to ensure that all necessary disclosures are made and that home inspections and walk-throughs are conducted, protecting both buyer and seller from costly remediation and legal issues.

Risk 3 – You Could Wait and Wait to Close the Transaction.  For-sale-by-owner sellers rarely devote all of their attention to handling the transaction, oftentimes leaving the buyer waiting for weeks or even months without answers.
Remedy – Realtors dedicate their professional career to representing buyers and sellers, devoting countless hours per week to helping buyers find and close that perfect home and helping sellers efficiently sell their property in a quick, smooth process.