Buying a For Sale by Owner (FSBO) in the Denver metro area involves both challenges and opportunities.  The ability to determine which one is which involves a skill that a good real estate agent or Realtor can provide.  It can be very smooth or pulling teeth without drugs.  Here are the pros and cons of working with FSBO’s.

Pros of working with a FSBO

• Likely to be uneducated about the process. Always try to find out there background as it relates to real estate.  Here are some professions that might have a background that relates; attorneys, accountants, title professionals, appraisers, etc.  Basically if someone has been involved in the industry they might have some knowledge.  I still advise working with a competent real estate agent.  If these people are unfamiliar with the process there are a lot of way to take advantage of them.  This is even so true that if I am working for the homebuyer then I have to disclose to the FSBO that I’m a licensed agent and can have them at a disadvantage.
• Less competition.  The real issue is most homes around 90% of the homes are sold through the mls.  This is how agents and buyers find you.  Yes it’s possible to sell your home on Craigslist it’s not how most homes are sold.

Cons of working with a FSBO

• Likely to be uneducated about the process. This can lead to delays, not getting the home in a timely manner, liens, and the contract not even coming through.  At a training recently with a title rep I found out that only about 25% of FSBO’s actually close.  This is without either party having an agent involved.
• Pricing the home correctly. Most FSBO’s don’t have the access to the most up to date home price data.  Hint Zillow is frequently wrong.  Without the right data or realistic expectations even if you find a home you like it may not be possible to negotiate a fair price.
• Emotional involvement. Lots of people have an emotional attachment to the house this can affect the deal in strange ways.