Frequently as a Realtor
® I hear stories of woe. Recently there was a Buyer who put an offer in on a FSBO (For Sale By Owner) property. The offer was for about $6000 less than the advertised price (perhaps the buyers realized that since FSBO sellers don't pay commission, they frequently expect the FSBO seller to lower the price of the property accordingly). The Seller completed the prepackaged contract (probably from one of those .com places or the local stationary store) but wanted to "think about it" for awhile.
About one week later, the Buyer called the Seller to inquire about the contact. The Seller had taken another offer for about $1500 more than the Buyer was offering. In short, the Buyer was out of luck.
The FSBO Seller was "offer shopping"; a common practice among FSBO's. If the Buyer had gone through a Realtor
® acting as a "Buyer's Agent", the Realtor
® would have prepared the contract and provided for a time limit after which the offer would expire. This prevents the Seller from sitting on the offer waiting for better offers to come along.
Buyer's Agency is a relatively new and little understood concept in the real estate industry. It was not too long ago that all agents worked for the Seller and the Buyer was left to fend for themselves. Now, with a Buyer's Agency Agreement, the Buyer has an advocate working only for them -- and expert who can look out for traps like offer shopping.
If you are looking to buy a property, or know anyone who is, and want to know more about Buyer's Agency, (and live in Northeastern Illinois) please call me or make an appointment buy visiting my
website.
