Return To Blog

Buying “For Sale By Owner” Homes in Observatory Park

March 15, 2017

Have you ever wondered why some homes have large for sale signs in their yards, while others have smaller signs that simply say “for sale by owner”? If a seller chooses to work with an agent to sell his home, the agent will place a large, branded sign in the yard to advertise that the home is available. But, some homeowners try to sell their home without an agent’s help, and in this case the home is referred to as being “for sale by owner.” If you’re considering buying one of these homes in Observatory Park, here’s what you should know:

It may be difficult to negotiate.

There are many reasons why a seller would choose to sell his home on his own rather than work with an agent. One reason is that he does not want to pay an agent’s commission after the deal is over. Another could be that he does not agree with the value that local real estate agents have placed on his home. What does this tell you? Money is very important to these sellers. Because of this, it may be much more difficult to negotiate a fair price for a home that is being sold by the owner. If you’re seriously interested in a home, ask your agent to be direct with the owner and find out if there is any wiggle room in the price. If he’s not willing to come down at all, don’t waste your time submitting an offer unless you are willing to pay full price.

Always get an inspection.

You never want to assume that someone is trying to hide a major problem with a home, but you shouldn’t trust someone you don’t know, either. It’s always important to get a home inspection before closing, but even more so when you’re buying a home that is for sale by owner. If the owner makes a fuss about you asking for an inspection, this is a red flag that you should think twice about purchasing the home. Here’s what to know about the home inspection.

Ask your agent to hold the seller accountable.

Unless the seller is a licensed real estate, he may not be familiar with the legal duties of a seller in the state of Colorado. It’s up to your agent to hold the seller responsible and ensure he complies with the law. For example, sellers in Colorado have to provide buyers with a disclosure statement that covers whether the property is in a special taxing district, the home’s source of drinkable water, and any new transportation projects that may be taking place in the community. Make sure your agent stays on top of the seller to ensure he is fulfilling all of his legal obligations.  

When in doubt, it’s best to trust your agent’s advice. If you’re ready to find a home that fits all of your needs, contact the professionals! Contact Elevation Realty to be connected to a team of experienced real estate experts ready to help you on your home buying or selling journey.