Types of Sellers – FSBO, Banks, Relocation Company and Individuals with agents
Every seller’s story and/or motivation to sell is different. Something to consider as you research different homes is the type of seller that is selling the home. While I’ll blog more in depth about the advantages/disadvantages of each type of seller, I’ll breifly break down the differences between buying from an individual (with an agent), FSBO, relocation company or bank owned (foreclosure).
FSBO (“For Sale By Owner”) homes are homes that are sold by an individual without a REALTOR. The only difference between a FSBO and a home listed by an agent is that there’s no middleman. The seller and the buyer communicate directly throughout the entire transaction.
Individual (with agent)
Somone that would like to sell their home with the assistance of an REALTOR hires an agent to negotiate all of the details of the transaction. Although the agent is the middleman, everything still must be approved by the seller. The agent provides information that helps guide the seller in their decisions but ultimately the seller “runs the show.”
Purchasing a home from a relocation company isn’t much different from an individual, however, in some circumstances the relocation company may not be as willing to negotiate the price as another type of seller. When a company offers a relocation package to their employees, they hire a company to purchase their home. From there, the relocation company attempts to sell it to the average homebuyer.
Bank owned properties include foreclosures and “real estate owned” properties (REO’s). Shortsales are homes on the brink of foreclosure, however, not completely “owned” by the bank. One difference between working with a bank versus an individual or relocation company are the fact that most properties are sold “as-is.” Depending on the situation, some banks may be more willing than others to negotiate the price.
Have you had any expriences with these different types of sellers? Do you have any suggestions for future buyers? Chime in!