Anchorage FSBO Market: Part 2

 

Anchorage FSBO Market

          The For-Sale-By-Owner (FSBO) Market often presents a tempting picture to buyers. They may choose to search these homes believing it will save them the commission fee or will garner them a great deal. Others may simply be searching to see what inventory is available. Whatever your reason for searching through these listings may be, we urge you to educate yourself as much as possible on the home buying process. Learn where an agent’s commission comes from, and understand the time commitment and risks involved in going through the process unrepresented. While we believe choosing an agent to represent you is a wise move, we are more concerned with providing buyers with resources so they can make the best decision for their family and particular needs. Below is a short discussion on a few common reasons buyers choose to search the FSBO market alone.

One of the most common reasons unrepresented buyers scour the FSBO market is because many are confused over where the commission for their agent’s services comes from. Buyers, your agent’s commission comes from the seller. Please don’t think you will have to pay their commission on top of your closing costs. The seller will be paying their commission. An agent can help you find the right home, negotiate the price for you, and handle all the paperwork in addition to showing you information on comparable homes and helping you determine how much you really can afford. So the question remains: why would you not want to take advantage of an agent’s services when you get this wealth of knowledge at no additional expense to you?

Secondly, buyers may search the FSBO market hoping to negotiate with the seller for a better deal on a home. Usually these buyers have bought and sold homes previously with or without the assistance of an agent. Occasionally, this might work in a buyer’s favor. However, it is likely unintentional on the seller’s part. I have to ask: why would a seller who doesn’t know the buyer want to give them a great deal on their house? Most sellers would instead be happy to pocket the additional savings rather than sharing those savings with the buyer. Sellers on the FSBO market are most likely hoping to recognize a substantial savings. This being the case, a buyer may find himself or herself struggling to negotiate a “fair” price for a home. If you do find your dream home on the FSBO market, consider the time and effort involved in purchasing that home. Are you prepared to present an offer, negotiate the price, work through the home inspection and appraisal process, and keep in contact with your lender?  

The Anchorage FSBO market has only a handful of houses currently listed. If you are a buyer only looking at FSBOs, you are limiting yourself. The traditional market is picking up and more people are beginning to list their homes with an agent’s help. These homes are listed on the Alaska MLS and can be viewed through our website. We want you to know you can visit our website to find homes in Anchorage today with no pressure attached.

 And buyers, whether or not you choose to enlist the services of an agent, please, please, please go get yourself prequalified through a lender before you begin searching for your next house. You will have greater bargaining power if you are prequalified before you ever step foot into that dream home.

Happy House Hunting!