This recent article shows another example of a FSBO nightmare. Houses have issues. New construction or a 100 year old home. It doesn’t matter. Look at this example of one way that FSBO can have long term effects.

From the article

Both buyers and sellers have problems relating to For Sale By Owner issues.

For sellers, the largest issue seems to be properly disclosing all relevant items to satisfy the liability issue. There are resources available, but the question is whether the you took proper advantage of them and made all the legally required disclosures on any issue with the property there may be. If you have an agent that fails to do this, you can sue them. If you are doing it yourself, the only one responsible is you. You are claiming to be capable of doing just as good a job as the professional, and if you didn’t do it right, the buyer is going to come after you. You have all the legal liability.

Let’s say it was something fairly innocuous, like seeping water from a slow leak you didn’t know about. A couple years pass, and now there’s mold or settling. Perhaps the foundation cracks as a result of settling. Bills are thousands to hundreds of thousands of dollars. Your buyer goes back and finds that your water usage went up by fifteen percent in the six months before the sale. He sues, saying that even though you didn’t know, you should have known based upon this evidence. Court cases are decided based upon evidence like this every day. A good lawyer paints you as maliciously selling the property as a result of this. Liability: Steep, to say the least.

Now, let’s look at it from a buyer’s prospective. You have a choice of two identical properties. In one, a seller is acting for themselves, in the other, they have an agent. The price may be a little cheaper on the for sale by owner one, or it may not – usually not. The most common reason people do for sale by owner is greed. But when I’m looking at a for sale by owner, the question that crosses my mind is “Are they rationally greedy, or are they just greedy?” Are they going to disclose everything wrong or that may be an issue with the property? At least here in California, the agent has pretty strong motivation to disclose if something is wrong that they know about. If they don’t, they can lose their license, and even if they don’t, they have potentially unlimited personal liability. If they did disclose, they’re probably off the hook, and even if they aren’t, their insurance will pay for the lawyers, the courts, and any liability. If there’s one thing all long term agents get religion about, no matter their denomination, it’s asking all of the disclosure questions.

This is not the case for many owners selling their own property. Some are every bit as good and conscientious as any agent. A good proportion, however, are intentionally concealing something about the property. What’s going to happen when it comes to light? If there’s an agent, there’s a license number, a brokerage who was responsible for them, and insurance. The latter two are deep pockets targets for your suit, and you can find them. Once that owner gets the check, you can find them unless they’re dead, but they may not have any money. Even if they do have money, it may be locked up and inaccessible via Homestead or any number of other potential reasons.

It’s always a good idea to have a licensed Realtor in your local area to handle your real estate transactions, so you can avoid problems with the property in the future.

If you ever have questions about home inspections or pest control, feel free to give Kevin or Jeff a call at 225-753-8114, or email us at info@extramileteam.com, and we’ll be glad to help.

To view the entire article click here: http://www.fsbonightmares.com/fsbo-nightmares/failure-to-disclose-problem-fsbo

This recent article shows another example of a FSBO nightmare. Most people, unless they have purchased several homes in their life, are in danger of falling into one of these real estate nightmares.

From the article

Nightmare #1: Ghastly pasts – Back in 2003, homebuyers Gregory Walker and Mary Lou Rosato fell in love with a 100-year-old Victorian home for sale in Los Angeles. The bank-owned property had some rather unusual features — including a toilet in the sunroom — but it was a bargain at $240,000, more than $100,000 less than similar houses nearby. But their dream come true quickly became a nightmare when they found out that the home’s previous residents were gang members who used the sunroom toilet to flush crack rocks in case the police showed up. They had already purchased the home, but they wrote an angry letter to the bank and got out of the deal.

Nightmare #2: Frightening home flaws
Sometimes looks can be deceiving. A few years ago, a homebuyer in Oakland, Calif. was thrilled to find a lovely, Spanish-style cottage filled with 1920s detail but gleaming as though it was in brand new condition. But a home inspection later revealed that, while the home’s interior was in great condition, the entire concrete foundation was shot from 80 years of poor drainage and would cost more than $100,000 to repair.
TIP: Never buy a home without getting an inspection first — even a new construction. No matter how great a home looks, be sure to include an inspection contingency in your contract so you can bail if an irresolvable flaw is found. Also, do a final walk-through just before closing to make sure the sellers have maintained the property’s condition

Nightmare #3: Showing shockers
Horrible taste in home decor isn’t the only scary thing you might encounter during a showing or an open house. Jerissa Parkhurst, an agent with Coldwell Banker Premier Real Estate in California, was looking for a fixer-upper to buy with her husband. In one home, they discovered a room where all the carpet had been pulled up except for one little patch. When asked what had happened in that room, they were told that one former resident of the house had a “wetting problem,” which had soaked through the carpet into the floor.

Nightmare #4: HOA horrors
Homeowners associations certainly have their perks. Your lawn work is taken care of, you get access to amenities you may have been unable to afford otherwise, and you don’t have to worry about your neighbor painting his house a hideous shade of orange. But for many homeowners, seemingly small violations of HOA regulations have resulted in huge consequences.

Nightmare #5: Neighbor nuisances
Problem neighbors can quickly shed light on why your home’s former owners were so eager to move out. Bad neighbors come in a variety of forms, from the ones who blast loud music into the wee hours of the morning, to the ones who never mow their lawn and keep old, rusty cars in the driveway, to — worst of all — the ones who present a danger to you and your family.

Nightmare #6: Formidable financing issues
Foreclosure and short sale buyers aren’t the only ones experiencing financing nightmares right now. When buying a home in Lake Worth, Fla., Jaci Jackson and her husband had to jump through major hoops to get a loan, even though the home they were buying was only a third of the price of the loan they were approved for.

Nightmare #7: Scary short sale buying
Don’t let the name fool you: buying a short sale can be a long, tedious process. Just ask Rae Catanese, an agent with Prudential Tropical Realty in Tampa, Fla., who is representing three short sale buyers. After being under contract for four months, one of the sales is finally closing — maybe.

Nightmare #8: Unwelcome guests
The foreclosure crisis has left thousands of homes vacant, yet some of these homes are not quite as vacant as they seem. Squatting is on the rise across the country, and the issue is being met with mixed reactions. Some think squatters are lowering property values and inviting crime into neighborhoods, while others think that someone ought to be making use of all those unoccupied homes.

Nightmare #9: Awful agents
When you’re selling a home in a buyer’s market, you have several factors working against you: fierce competition from other sellers, picky buyers who are looking for bargains, and falling home values that make it difficult to pinpoint a price. On top of all this, your agent might be working against you too. Scary, huh? Most agents are true professionals, but unfortunately, there are some out there that may be devoting less than 100 percent to your cause.

Nightmare #10: Spooky surprises at closing
If you’re a buyer trying to take advantage of the down market’s opportunities, you’ve likely scraped together nearly all the cash you have to close the deal. So what happens when — horror of horrors — you get almost to close of escrow and, surprise!, you’re told that your interest rate or closing costs or even mortgage payment are higher than expected? Receiving a surprising figure required to close feels like being hijacked — no housejacked, as in, “you’ll get your keys when you give us your money!”

It’s always a good idea to have a licensed Realtor in your local area to handle your real estate transactions, so you can avoid these nightmares and settle into your dream home!

If you ever have questions about home inspections or pest control, feel free to give Kevin or Jeff a call at 225-753-8114, or email us at info@extramileteam.com, and we’ll be glad to help.

To view the entire article click here: http://www.fsbonightmares.com/fsbo-nightmares/10-real-estate-nightmares/

This recent article shows another example of a FSBO nightmare. For many people buying a home will be the biggest expense they ever have in their lives. Doesn’t it make sense to learn from other people’s mistakes and try not to make them yourself? Read this article to avoid making the same mistakes of this first time home buyer.

From the article

Confession #1: I would never have found my house searching in what I thought was my price range. I started my house hunt pretty clear on what price range I should be searching in, based on what I could afford and how much my lender said I was qualified to borrow. Then, as buyers are wont to do, I began to inch my search price range upwards, looking at homes listed above what I could afford in hopes that I could find a higher-priced (read: better) home, then negotiate my way back down to my target price range. The upshot: If property pickings seem slim, tweak the price range you’re using to search for homes – in both directions.

Confession #2: I had to learn to walk a fine emotional line. Here’s the deal – at the time, my home was the biggest purchase I had ever made – by far. I was a lawyer, so I’d worked on some major transactions, but still – we were talking about the place where I’d live every day, the place for which I’d be writing what then seemed like a whopping check every month, the place where my kids would grow up, for Pete’s sake! So, I wanted to get it right, like every first-time buyer does. The upshot: Don’t make an offer unless you’re excited about the home – as it is now, or as it could be. But don’t get too excited until after you’re in contract and past the inspections and appraisal.

Confession #3: A “free” agent is the most effective sort. Here’s what I found out: buying a home is simply not like placing an order. And working with a real estate agent is not like working with any other sort of salesperson. Rather, working with a great agent is like a hybrid experience of working with an expert salesperson who intimately knows their inventory and the ins-and-outs of how to make a deal, and working with an expert advisor like a CPA or an attorney, who you pay specifically for their advice, insight and expertise at complex topics that you know little or nothing about.The upshot: Stay as flexible as you can, as long as you can. Keep your deal-breakers and must-haves to a minimum to get maximum benefit from your agent’s expertise.

Confession #4: I didn’t know what was really important to me. I thought square footage, good views, safety and quiet were all critical. I insisted those items were deal breakers – and got them. I also wanted a big yard for the kids, fantastic views and a good commute to a wide variety of areas, but these were a little lower down on my priority list. In retrospect, I can say that I definitely missed the mark on a number of other things. The upshot: Cultivate clarity about your vision for your life, rather than just the specs of the home you think you want, before you start your house hunt. The other upshot: Whatever you dislike about your home (and there will be something) you’ll have a chance to correct the next go-round.

It’s always a good idea to have a licensed Realtor in your local area to handle your real estate transactions, so you can find a home that you will enjoy for many years to come.

If you ever have questions about home inspections or pest control, feel free to give Kevin or Jeff a call at 225-753-8114, or email us at info@extramileteam.com, and we’ll be glad to help.

To view the entire article click here: http://www.fsbonightmares.com/fsbo-nightmares/learn-gone-before

This recent article shows another example of a FSBO nightmare. Selling your home FSBO is probably a lot harder than you may think and here are five reasons why.

From the article

1. FSBOs can’t list their home in the MLS. FSBOs aren’t permitted to put their home in the multiple listing service (MLS) because these industry membership organizations are open only to licensed real estate brokers and agents. FSBOs are also locked out of many home search engines and Web sites, including the gigantic Realtor.com. Sure, a determined FSBO can put a for-sale sign in his or her front yard and run a tiny advertisement in the local newspaper, but the home won’t receive nearly as much exposure as it would through the MLS.

2. Agents won’t show FSBO homes. In a typical home sale, the buyer’s agent receives a percentage of the commission that the seller pays the listing agent. Without a listing agreement, there’s no guarantee that the buyer’s agent will be compensated for his or her services, unless the buyer has signed a buyer’s brokerage agreement that specifically provides for such compensation. Even if a FSBO offers to pay the buyer’s side of the commission, most agents won’t want to go through a transaction with an unsophisticated self-represented seller across the table. That means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.

3. FSBOs usually overprice their home. Like most homeowners, most FSBOs honestly believe their own home is worth more than comparable homes in the same neighborhood. Usually, they’re wrong. A real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home’s buyer appeal. Overpricing a for-sale home is a sure way to deter potential buyers.

4. Buyers will feel intimidated. Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they’ll be shy about discussing its pluses and minuses with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer if they know they’ll be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.

5. FSBOs are likely to stumble into legal trouble. Real estate transactions are fraught with potential liability for unwary sellers, particularly in states that have extensive disclosure requirements (e.g., California). A FSBO who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes

It’s always a good idea to have a licensed Realtor in your local area to handle your real estate transactions, so you can avoid the frustration of marketing your home yourself.

If you ever have questions about home inspections or pest control, feel free to give Kevin or Jeff a call at 225-753-8114, or email us at info@extramileteam.com, and we’ll be glad to help.

To view the entire article click here: http://www.fsbonightmares.com/fsbo-nightmares/5-reasons-fsbo-hard/