What are the pros & cons of buying a house for sale by owner(without the intervention

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Peter_33

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of a real estate agent)? My father wants to buy a house, but he thinks he can get a better price if he deals directly with the owner. I'm not so sure about that, and that's why I'm asking.
 
He probably would get a better price going personally to the owner. If he uses a real estate agent, they get a commission for helping him. Once they settle on a price, then they both need to get attorneys to handle the legal process. Real estate agent is not necessary in this type of sale.
 
The only pro is that he'll be saving money on the commission, but those savings can quickly disappear and become costly mistakes when you don't have an agent looking out for you. If he insists on doing this without an agent, he should have a real estate attorney look over any contracts BEFORE he signs them, he should insist on a home inspection, termite inspection, he should know how to negotiate closing costs and inspection costs into the contract, etc. etc. Bottom line is that a real estate agent is paid for doing more than just showing the house - there is a lot of behind-the-scenes work that needs to be done and looked after from start to finish. If he doesn't know what he's doing he can wind up getting screwed over for far more money than what he is saving on the commission.
 
If he has lots of negotiating skills and a thorough knowledge of real estate law, maybe he could get a better price.

However, a real estate purchase is a minefield of regulations and paperwork. Agents earn their money, believe me, and can help to negotiate a better price, even taking into account their percentage.
 
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