Is It Risky To Buy A House For Sale By Owner?
The Savvy Synopsis
You may have seen the signs with “For Sale By Owner” on the top. Is there a danger in purchasing one of these homes or anything you should be considering? In the mailbag this week are two questions from listeners that Angie Cole answers with her expert opinion.
Did You See This?
Maybe you’ve seen a home for sale by owner in the neighborhood you’re interested in buying a home in--is there any risk to that? Amber from Raleigh asked this question in the mailbag this week. Angie talks through the problems and complications that might come up along the way if you work with a home that is for sale by owner.
Speaking of buying a home, if you’re in the home buying process, you may be interested in this homebuyer guide from Angie’s team. There are a number of things that come up, so this is a helpful guide whether you are a first-time homebuyer or going back to buy a home after several years since your last move.
Another question this week comes from Blake who is building a new home. Worried about having two mortgages in the future, he wants to know when to put his house on the market or if there is a way to delay the closing to line up with the new home. Angie gives her advice on this tricky situation that puts many homebuyers in limbo when dealing with new construction. Some of it may come down to your priorities, situation, and budget and a real estate agent can give you guidance on how to best proceed.
0:52 - Mailbag: Is there a danger in buying a “for sale by owner” home?
2:07 - For sale by owner homes may be more difficult to negotiate.
7:20 - Mailbag: Is there a way to sell your home and delay the closing until a new home is built?
8:25 - You are often at the mercy of the builder’s timeline with a new home.
9:15 - “Coming soon” is a great way to market your home.
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Note: This is an automated transcription. Please forgive the robots as they tend to make some (a lot of) mistakes...
Speaker 1: It's time for the savvy real tour podcast I'm Walter Storholt alongside Angie Cole, the owner and broker in charge of acole realty serving you throughout the triangle, teaching you about the ends announced When it comes to buying or selling a home, you can find the team online by going to a coal realty dot com. That's a c o l e realty dot com or by calling 9195783128. That's 9195783128, and now it's time for one of the top rail tours in the Triangle. Angie Cole and the savvy real Tour podcast. If you've got any questions, Angie's got answers for you most of the time, and if we don't know, the answer will go find out the answer for you and let you know. If you want to submit any questions to be featured on the show, you go to a coal realty dot com, and with that Angie, let's open up the mail bag and get our first question of the week here from Amber in Raleigh, Amber says, I've heard you talk about the dangers of selling a home on your own. But what about buying a home from a for sale by Owner Seller? Is there any danger were concerned there?
Speaker 2: Amber, You know, I have to say, unfortunately, there is, I don't know. Any time one of our clients, they find a for sale by owner sign and they want us to go show it to them. A scheduled appointment. We honestly, we cringe a little bit, and the only reason being is we oftentimes see that that cellar, who's doing it for sale by owner is completely clueless about the process. And when we're working with, you know, the seller on the other end who just does not understand the process a real estate transaction, understanding the paperwork, it makes it tougher for all of us. Because then it leaves, you know, like me, for example, representing you, Amber on the buy side, It leaves me kind of doing all the work and facilitating, but still making sure I'm representing you and looking out for your best interests. So we often times fine that it can be a little bit messy. We oftentimes find to when this is not always across the board But, ah, lot of times when someone is doing up for sale by owner sale, they oftentimes are a lot tighter on their negotiations. Because you know what? If they're not willing to invest into a real estate agent to help them to get their homes sold for top dollar, oftentimes they're not going to be that negotiable. When it comes to the price point, you know, we see that they don't have someone being kind of the voice of reasoning to explain to them. Well, here's the comparables. This is how your home should be price. So we often sometimes find that negotiating an offer with a for sale by owner it could be difficult. So you know, our team that with a cool reality, we do the very best that we can tow shelter you from all of the kind of nonsense and the frustrations that might come along with working with the for sale by owner, because we want to focus on you getting that home. But that's a home that you want. We will do our very best job to you, you know, get that home for you and you get the best deal is the dangers of selling. You know, we're working with someone who's selling their home as a for sale by owner. You know, there can be some complications along the way. We've seen that in the past.
Speaker 1: Well, said Andrea. A lot of things there I would never have even thought about. You know what? It's buying a home, what's who matters, who's selling it. But it's a great example of how the structure of the sale could be totally different in that particular case. And yeah, to me, it would be kind of weird dealing, maybe directly with the person selling the home in such an intimate way, like it's almost a nice that it's more of a business transaction from the buying standpoint, because you can help eliminate those emotions, you know. So that's
Speaker 2: all I know is a real estate agent. I feel the same way. I'd rather work with another agent, you know, versus working directly with the cellar.
Speaker 1: You guys speak the same language.
Speaker 2: Yeah. Yeah, well, you know, when we have to be careful on, you know, language, in a sense. But the wording that we use when we're speaking directly with the cellar, you know, because, like you just said, I mean, it's it's emotional for them, you know? They love that home. They're not thinking of it as a real estate transaction and being mindful of that, there's a lot of like, you know, personal thought that goes into, you know, selling that hand. That isn't always the best way to go about things, so it can be a little bit difficult.
Speaker 1: Yeah, absolutely so great question. Amber, thank you for submitting that one to us. Very helpful. Get questions like this on the show each week, for sure. And, Ah, Amber, you're looking to buy a home. It sounds like an ingenue. We have a lot of people listening to show that in that market to buy a home. And that's one reason why you and the team that Eko Realty have put together that great buying guide for folks who might be about to walk through that journey.
Speaker 2: Yeah, so we have, ah, great resource that we would love to share with you. So if you are thinking about buying a home and even selling one, we have a document that we can share with you, and it's just the home buying process, so it takes you through the steps from start to finish, and it wants you through the process. So you make sure that you're always one step ahead when you are going down that avenue. So if you are thinking about buying a home and you want to understand the process, we would love to share with you our home buying guide. You can text the word contract to the phone number 555888 and from there we will send you back the downloadable home buying guide. So once again, if you're thinking about buying a home or even selling and you want to understand the steps from start to finish, we would love to share with you our home buying guide. You can just text the word contract to the phone number by 55888
Speaker 1: Again, just text the word contract to the number 555888 and we'll text you right back immediately. A link to access that home buying guide. So it's a great resource for anybody who, especially if you're a first time home buyer and you kind of want to see that what that sort of step by step process is going to look like this is a kind of easy boiled down version or guy that's going to just show you all of those most important steps of the process. Great to have handy, great toe. Look over before you start even working with an agent. Um, just so that you're familiar with the process going into it. You'll learn some key terms, some valuable information there as well. But it's not just for first time homebuyers. I know we had a five or six year gap between buying a number one and then moving on to home number two and you forget a lot in five or six years.
Speaker 2: Yeah, no, it's true. And you know what the process does Change that, because remember, our contract changes. For example, one of the newest changes that is coming about every July. The contract dogs can change, and normally they do. The real state commission will change things on us, but we're doing away with the contingent Sale addendum, which is a very common addendum that people use whenever writing up a contract when they have a home to sell or home too close Ah, but we are doing away with that, and now that's something that needs to be drawn up by an attorney. So things change all the time.
Speaker 1: Yeah, it's a very good point. So it's been 15 20 years since your last home purchase. Ah, lot may have changed in that time. So again, it's a good reminder of that buying process. So if you want to get that guide, it is for free resource that Angie provides here on the show. All you have to do is send a text to the number 555888 and in the message. You just put the word contract and we'll text you right back that link to download the guy. It's that simple. Text. The word contract to the number 555888 for Angie Cole's home buying guide. Amber, thanks to the great question, sparking lots of good discussion there. Let's get another one here from Blake. Blake is in Holly Springs and says We're starting to build our next home. It'll be several months before it's ready. I'm worried about waiting too long Toe list, our current home for sale. I don't want to get stuck with two mortgages. I also, however, don't want to sell now and have to live in a hotel or apartment for several months. In between moves. Is there a way to sell the home now but not have the buyer move in until our new home is ready?
Speaker 2: You know, Blake, unfortunately, this is something that I fear all of the time, because there's so many of you out there that are selling and building a new home. And unfortunately, there's never a good answer to give someone. Um, it is almost near to impossible to perfectly line up the closing dates and the reason why state that is, although I can give you good guidance on your sale side, depending on the neighborhood in the area, as far as how long it will take us to go under contract and then close burst ball. That's never going to be exact. But the one thing that we really do not have control over is the builders timeline. And so, although you are building and they could even give you a estimated closing date or even a firm closing date at any point, the builder can change that on you and you are at the mercy of them. And so if they already early, you need to close early. If they it takes him another three months to get your home. You know, build and ready for closing, you just have to wait. So that's why there's a lot of kind of being in limbo. But once in a blue moon, you will have a buyer. He makes an offer on your sale. And who will allow you to do seller possession after closing? I actually have one right now where it was a win win, we got again a sight unseen offer from an investor. So we never truly went active and on the market. We were in the coming soon advertising stage, which we really take advantage of. And if you're looking to sell your home, I can go into detail on that. But it's, ah, wonderful status to be in Ah, but sight unseen offer. And the investor is allowing to my cellars, too, live in the home do seller possession after closing, so it then can a lineup when whenever their new home is being built, I'm going to be ready for closing. But like, you know, my thoughts are expect to move into temporary housing. I would rather you not wait too long to get your home on the market with the fear of now having two mortgages or maybe not being able to close on your new home because you need to close on your first home. You know, before making that closing happen for your new one. So expect to live in temporary housing. I know. It's I know it sucks. I hate that word. But it does.
Speaker 1: Well, you kind of have to choose in this case. Well, first of all, two things jump out to me. The old saying, you know, hope for the best. Prepare for the worst, right?
Speaker 2: Yes.
Speaker 1: Plan for the worst. So the worst would be that you're gonna have to choose one of those two options potentially have overlapping mortgages if you wait or sell now, but yeah, you're gonna prepare to move into temporary housing, but you can hope for the best that maybe there's a buyer that wants to buy the home now, but it's totally fine waiting to move in. You know that that does happen, but it's not not something you're gonna bank on,
Speaker 2: right? Right. And we want you to focus on getting your home under contract, not finding that, you know, perfect buyer that will allow you to do seller possession after closing. Because you know what? A lot of times, maybe their leases expiring, so they must be in your home. So don't bank on the buyer for your home allowing you to stay. You know, after closing the other option,
Speaker 1: choose, you know, what's the lesser of the two evils, right? Is which one is a bigger deal to you, the moving into temporary housing. Or if you haven't overlapping mortgage for a month or two, would you rather absorb that, you know, versus so which one is more painful on Ben Do the other?
Speaker 2: Yeah, everyone's situation is different. So, you know, that's something that you know, I'm a real estate agent. I'm not therapist, but I can definitely walk you through those issues and concerns and give you, you know, the best guidance I can possibly give you.
Speaker 1: You've been listening to the savvy real tour podcast on Walter store hold alongside Angie Cole. She's the owner and broker in charge of a CO Realty here in the Triangle. And if you have questions for Angie Wei, invite you to go online to a coal realty dot com. Listen to past podcast episodes on the website. Read the block and all the great information, including the option to find a home right there on the website. That's a coal realty dot com, and you can also call Angie with your questions. 919578 31 28
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