October 3rd, 2011
In a for-sale-by-owner purchase, risks to the buyer include a lack of disclosures from the seller. The seller should disclose any problems with the house, but this doesn’t always happen. Buyers also have no representation to negotiate the price of the home, and no one to help them deal with the problems that come up along the way.
The seller risks not getting the money they could have for the property because it will not receive exposure on the MLS without a Realtor. Another major financial risk is getting sued by the buyer for inadequate disclosure in the Transfer Disclosure Statement and seller supplemental papers.
Before selling a home yourself or buying one for-sale-by-owner, weigh the risks of that decision and consider interviewing real estate agents – there is no commitment in an interview.