Technological advances have made it much easier to buy and sell properties. Apps like Zillow provide information on available properties and interested parties can get in touch with each other using a simple email. As a result, buyers and sellers may consider completing a real estate transaction without the use of a real estate agent.
This can save money. Real estate agents charge for their services — often a percentage of the purchase price. Parties to the transaction can save a great deal of money by going ahead without an agent.
But at what cost? Skeptics voice concern that a transaction without an agent could put either party at risk. These two tips can help reduce the risks that come with a for sale by owner (FSBO) transaction:
- Hire a title company. The title company will better ensure the property is available for sale without any legal hinderances to ownership.
- Get legal representation. In many cases, a buyer or seller can hire a real estate attorney for a fraction of the cost of a realtor’s fees. This legal professional can draft purchase agreement documents that are tailored to your transaction, represent your interests during the closing and reduce the risk of surprises during and after the sale. Ideally, both the buyer and seller should have their own representation during closing.
With these two steps, buyers and sellers alike can save thousands of dollars during real estate transactions. The seller will pay less as he or she will not cover a real estate agent’s costs and, with this savings in mind, the buyer could negotiate a better final price.