Ask your realtor: Should we buy a 'for sale by owner' home

Question: Dear Kari, My husband and I have just about had it with this market. We have saved till our faces turned blue. Now we are finally ready to buy a home and we land in the middle of Nutsville, help! We have made so many offers on so many homes and have been laughed at constantly. We are not a cash buyer's nor do we have the 10 or 20 percent for the down payment. My mother told us about her friend that wants to sell her home and does not want any realtors involved so she can save money and pass on the savings to a buyer. My Mom makes it sound really good but my husband is extremely skeptical. Can you help us please? Answer: Wow, that is a very awesome question. One I do not get too often. I can understand how simple this could sound. A buyer wants to buy and a seller wants to sell, they meet and match. I have heard of this working out in some situations just fine. That being said I must share with you the number of lawsuits and lives that have turned upside down in court for several years far outweigh the pluses, unfortunately. Let's take a close look at what a buyer's agent can really offer. When working with a buyer's agent know that they have a fiduciary duty to their clients. This means the agents are obligated to look out for the buyers best interest and to follow the buyer's instructions. The following should be considered when entering the buyer's agent relationship: · Help in locating good lending sources with good interest rates and fees.· Create a well written purchase contract and outline of the entire process with up front time frames. · Discuss seller concessions.· Provide a full understanding of the contact.· Help the buyer select a title/escrow company and explain what the customary costs are for both buyer and seller. This will vary from county to county.· All negotiations with the seller.· Offer names of home inspection companies that have good reputations.· Schedule inspections and tests.· Go over all inspection results and suggest further inspections if necessary.· Make sure that all required papers are filled out completely by the seller. · Ascertain that all repairs are done properly.· Follow up on all government required items for the seller. Items such as correct strapping of water heaters, number of smoke alarms, amount of carbon monoxide detectors and so on. · Advise the buyer if the home is really worth the money the seller is wanting. This is done by closely looking at comparable properties and a meticulous overview of the appraisal.· Make sure the buyer stays within the contingency periods allowed for in the contract and that it does not jeopardize the buyer's deposit money.· Provide the buyer with pest control/termite company names with a good standing reparation. Next go over the report and point out what is understood for the buyer's and seller's responsibility. Point out any known defects.· Read through the preliminary report and look for anything that may cause a delay or stop the sale.· Buyers agent will set a date for a final walk through of the property· Be present for the final walk through. · Agent will review the final paperwork from the title company. This paperwork is also known as the HUD1 Statement. Buying a home is probably one of the most expensive purchases you will ever make and one could complete this task on their own if they so desired. An exciting tip to know is that in most all cases the buyer does not pay any of the costs associated with using a buyer's agent. My question is why would anyone not want to benefit by having their own personal professional agent looking out for their best interest for free? Happy home hunting and good luck in your future endeavors. Kari McCoy owns the Kari McCoy Group, Residential Real Estate, at Lyon Real Estate. Call her at (916) 933-5274 or e-mail her at sold@karimccoygroup.com.License #00841588