There is nothing wrong if you have chosen to take the route to buy a home off a FSBO website such as Duproprio. However, there are risks associated to buying a home without the help of an accredited broker - if you aren't familiar with the market and the buying process, things could get messy, fast. Considering the financial gravity of a real estate purchase, it's always better to move forward with the legal and professional counsel of a trusted professional.
If you choose this route regardless of the risks, make sure you keep the following in mind:
- Is the price right? If you've found your dream home on a FSBO website, the first step is to make sure the asking price is in line with market value, by comparing the price to other properties which have sold in the past. This is done with a professional Comparable Market Analysis (CMA). A CMA takes into consideration recent and successful sales, as well as property features and amenities. Sold prices are not publicly available, so you'll need to work with an authorized professional in order to obtain this information. You can request a CMA for free here.
- Legal Implications - When buying your biggest asset, make sure that you've got the legal side of things under control. A wrong turn in the purchase process can cost you the deal, or leave you with severe financial and legal repercussions after the closing. If working without a broker, be sure to confide in a trusted real estate councillor before entering into any binding contractual agreement.
- Time and Opportunity Cost - When determining whether you will be able to buy on your own, consider the hours of work that go on behind the scenes of a real estate purchase. You'll be drafting your own financial analysis for each property, co-ordinating visits with sellers, tenants and brokers, drafting your own legal contracts such as offers to purchase, counter offers and legal conditions, presenting offers and negotiating on price with the listing broker, reading through condo association minutes, researching builders and condo management histories, communicating with banks and mortgage brokers...the list goes on! Have a long think about whether you are a) able to and b) willing to absorb the complex transactional tasks that will be required of you as an unrepresented buyer.