Sellers that attempt to sell their own homes or use the services of a data only entry agent have declared that they know more about real estate than real estate professionals.
These sellers are motivated to try the FSBO route often because they are financially in trouble and/or they do not want to spend money on the sale of their property.
The data entry agent charges a fee to put the listing in the MLS in hopes that the seller will fail at their endeavor and ultimately become frustrated and employ them for full service. A bait and switch strategy.
FSBOs typically price their property based on what they want out of the property not on the market. The data entry agents input whatever data the seller wants.
FSBO transactions require additional work and liability for the buyer’s agent. The buyer agent many times has to handle both sides of the transaction, as the seller is unfamiliar with the documents and the process. The data entry only agents are difficult to reach and do not assist in the transaction.
Inspection and Repair Issues often arise. In North Carolina, the standard real estate contract has a due diligence provision and the buyer is most times paying a due diligence fee that the seller may keep if the buyer terminates the contract. In negotiations with FSBO sellers the cost of repairs is often an unresolvable dispute. Buyers have to either back out after spending money on due diligence activities or accept a property in need of repairs.
Buyers and buyer agents BEWARE _ you may want to consider steering clear of these sellers.
