Buying a Home For Sale By Owner in Portland

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If you’re a Portland home shopper, you probably keep your eyes peeled for yard signs when you’re cruising around the city, and you may occasionally notice one that says For Sale By Owner.

Well… who else can sell the home except the owner?
Of course, you probably already know that a For Sale By Owner, or FSBO (say it: “fizz-bo”), is a home or property being listed without a Portland real estate agent working on behalf of the seller. According to the National Association of Realtors, the number of home sellers listing without the benefit of a real estate agent has actually declined over the past two decades, but those stubborn DIY-ers still represent about a small portion of home sales.

Are FSBOs something to look for, or to look out for? Neither, really. However, there are some special issues to consider if you want to make on offer on a Portland home that’s for sale by owner.

People typically list a home without a real estate agent for two reasons: To save money on commissions or to avoid disclosing information about the home or property.

The first reason sounds innocuous, but if the seller is unwilling to adjust their price to accommodate their agent’s fees, it probably means that they’re going to be just as inflexible with potential buyers. Also, without a real estate agent to help them “manage expectations” based on actual market conditions in their Portland neighborhood, many sellers will have inflated prices to begin with.

The second reason (occasionally) for FSBOs is the one that keeps real estate agents up at night. Any number of details could be kept out of sight of potential buyers, from unusual liens placed on the property to asbestos in the walls. Buyers must tread very carefully, ask for sellers disclosures, and make sure they have a solid home inspection.

Thankfully, using a buyer’s agent is a great way mitigate both of these issues, and many for sale by owner sellers will agree to pay the buyer’s agent’s requested commission. This will also be a good indication that the seller is willing to negotiate on the price. Your buyer’s agent will do a comparative market analysis to ensure that the price the seller is asking is fair.

A buyer’s agent can also recommend appropriate home tests and help you find the best home inspector to unearth any potential problems. Finally, they’ll help you through the paperwork involved in actually purchasing the home, ensuring that everything goes down legally and that the deal closes without any unpleasant surprises.

So please, save the DIY projects for after you’ve moved in, and use a buyer’s agent whether you’re buying a home represented by another Realtor in Portland or by the seller. You’ll be glad you did.

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We have worked with many Realtors over the years and Stephen is by far the best we have ever met. He's very knowledgeable and gets the job done quickly. We had multiple offers after one day, not because we were under priced but because we had maximum exposure at the appropriate price!

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