Buying FSBO
Buying For Sale by Owner in Calgary
If you choose to purchase a home that is not listed via the MLS by a licensed Realtor, there are many more things you need to be aware of and educated about. Your risks are much higher, due to the lack of representation during the process. Remember that a Realtor does NOT cost you a penny during a purchase transaction in Calgary.
When you enter into an exclusive buyers agreement with a Realtor to represent you, they have certain fiduciary duties to uphold. You can also hire a Realtor to represent you in the purchase of a For Sale by Owner property in Calgary. This arrangement normally will be at a negotiated cost to you for the Realtor’s services.
Buying For Sale by Owner in Calgary means you have to be prepared with the following:
- Arranging your own home Inspection
- Arranging your own appraisal (if required by your lender)
- Adding the necessary and required conditions to the purchase contract to allow you time to arrange unconditional approval for financing and to arrange for and receive a favorable inspection
- Working with a seller that has all the proper forms that will be necessary to complete all the schedules and waivers of these conditions
- **REMEMBER — the purchase contract is a LEGAL contract, you must make sure you have covered every legal step to avoid problems during or after the transaction
What do you do if there are many items that require repair on the home inspection?
Should you re-negotiate the price, or should you walk away from the purchase?
These are only a couple of questions that a Licensed Realtor is there to assist you with. Based on how extensive your expertise and knowledge of the home buying & negotiation processes are, will depend on your level of comfort in these circumstances.
Remember, you do not have to go through this process alone. Give me a call today and I can easily assist you with your home buying process.
FSBO Home Buyers Checklist
- Mortgage Pre-approval – get pre-approved first bring a copy of your mortgage pre-approval/rate hold with you so that you can show the seller you are pre-qualified and able to purchase their home if you wish to make an offer, this will increase your negotiating power
Want to make an offer? Here are some items you need to request of the seller:
- Request a copy of Title – review it for encumbrances, restrictive covenants, liens and caveats – ask your lawyer to review if you have any questions or don’t understand what is on it (or you can work with a realtor who will do this for you)
- Get some identification from the seller to compare against the title, ensure that they are the legal owners and have the legal right to sell the property
- Dower laws – make sure that if the title shows more than one person (like a spouse) that they are signing on the purchase contract as well. Get identification for all parties. As well, if only one person is on title, how will you confirm that that person is not legally married and selling the property without the permission or knowledge of the spouse? Again, these are only a few of the issues you need to be aware of when purchasing via a For Sale by Owner.
- This list goes on, and is extensive. For more information on this or other FSBO related matters, contact me directly and I will be happy to meet with you to discuss entering into an Exclusive Buyers Agreement with CIR Realty, to avoid all of the pitfalls and issues you may not be familiar with when buying a home.
Protect yourself and your investment, buy with a Realtor.
