Home Buying in Fremont>Question Details

jsree, Home Buyer in San Ramon, CA

Buying a home not listed in MLS

Asked by jsree, San Ramon, CA Tue Jan 28, 2014

can some one advise on pros and cons of buying a home from seller or selling agent directly and the home is not listed in MLS

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15
my opinion;

Know the comp's.
You might get a good deal since you are not bidding against other buyers. However, you might pay too much if you don't do your homework. Homes in San Ramon area and the Fremont area are selling with several offers, over the asking price in most cases.
1 vote Thank Flag Link Tue Jan 28, 2014
Yes. Just as long as you think you can trust the agent
Flag Fri Jan 31, 2014
The home is not listed in MLS but There is an agent representing seller and the same agent would represent the buyer as well. I have an idea on the price of that home. Is it safe to work with the same agent?
Flag Wed Jan 29, 2014
Hi, The Pros are in the sellers favor. The Cons are that you do not have a professional working on your behalf. You need to make sure someone is working on your behalf making sure you get all the required inspections, and any and all repairs that need to be done are completed correctly by a licensed contractor. Also you will need a professional realtor to negotiate the price and terms for you. Unless you are a realtor or you have purchased a home more than once before. FYI the seller pays for the buyers realtor which is the reason they would want you to not have one. Dawn
Web Reference: http://DawnRivera4Homes.com
1 vote Thank Flag Link Tue Jan 28, 2014
Having an agent represent your best interest and with the benefit of his/her knowledge and experience working for you, and at no cost to you, I would definitely count that on the "pro" side of the ledger.
0 votes Thank Flag Link Sun Mar 9, 2014
Here is a post that specifically answers your question in a lot of detail:

http://www.trulia.com/blog/carl_medford/2013/10/pocket_listi…
0 votes Thank Flag Link Sun Mar 9, 2014
Hi,

There could be a number of reasons as to why the house is not listed on MLS. Sometimes sellers elect not to list the property on MLS or listing agent could be an Out of Area agent with not having access to the our MLS. So, It does not make a difference if a house is on MLS or its not. You need to carry this transaction similarly to another real estate transaction. This means getting a ratified or accepted contract, opening up escrow and title, if financing getting appraisal, inspections and closing.. I strongly recommend you to have a realtor represent you in the transaction. It is at no cost to you but you will ease of the mind through out the process.
0 votes Thank Flag Link Sat Feb 8, 2014
As well as a Buyers agent having the best interests in mind for the buyer and the selling agent having best interests in mind for the for the seller,

It is quite a misconception for buyers to assume they will get a home for a cheaper price if they go directly through the listing agent. Quite a few buyers are under the impression that if the listing agent is getting commission on both sides she/he will agree to contribute a percentage toward the buyers side of the transaction. The Listing agent is obligated to represent the seller and get them the highest price possible and have the sellers best interests in mind. Having said this, the only one who would most likely benefit from this price wise, if anyone, would be the seller.

If there was a pro to this situation, if the seller has other listings ready to sell or so called "pocket listings" the buyer may have a chance to hear about it before anyone else, giving them the advantage of seeing a property before it's advertised. I would definitely NOT recommend Listing or Buying a home without an agent. There is too much involved and that can happen that can end up costing you more money than you think you would be saving.
0 votes Thank Flag Link Sun Feb 2, 2014
There are no universal pros and the cons are almost always true and considerable. You want to work with YOUR agent and let them negotiate for your interests with the seller's agent, who will do the same for their client. The agents will each have to negotiate their fees with their clients (the seller customarily pays) since their is no MLS-published co-op.
0 votes Thank Flag Link Sun Feb 2, 2014
I wouldn't recommend it. You want someone looking out for your interests and your interests only. Most FSBO sellers are willing to work with agented buyers.
0 votes Thank Flag Link Thu Jan 30, 2014
You have no one looking out for your interests. It is in the agent's interest to get paid from both sides of the transaction. Out of the sale price of the house the commission is deducted. A percentage goes to the agent for the buyer, and another percentage goes to the listing agent. If the agent is representing both the buyer and seller, that agent gets both payments!. There are some agents who manage to have happy cilents at the end of this "double-ended" transaction, but often the buyer feels that they were not represented and they paid too much, and the seller feels like they sold too low. Be very careful. It reallly is best to have your own agent looking out for only your interests.

When you buy a "for sale by owner" where the seller isn't represented by a realtor and neither are you, you may miss out on disclosures that a realtor would know about, you may miss out on inspections that a realtor would recommend.

So it really is best to have educated, experienced representation because this is a huge financial decision you are making! Thinking you may save a few thousand dollars by not using your own realtor can result in greater costs and headaches down the line.
0 votes Thank Flag Link Tue Jan 28, 2014
Jsree,

The MLS is a tool used to help promote the sale of a home for a seller. It is something that agents and now buyers use all the time to view home and compare them with others on the market. It is something that I believe is invaluable as much to the buyer as the seller.

My wife are looking to move up to a home in a different city and scour both the MLS and home sites for any new home that becomes available in our area of choice. That is not to say we don't see the occasional home for sale by owner - but is is much rarer that those that are promoted by realtors.

With pricing - overall, I would again give the edge to homes listed by realtors as having the best evaluated and priced (realistically) homes. Many sellers sell the home for what they want - not what it is worth.

Contracts - You will be on your own here as sellers list homes themselves because they do not want to pay a realtor fees - and that includes yours. I am a believe in that you hire the best to get the best. I would not go cheap on a plumber or an electrician and I certainly would not go on the cheap with a realtor - especially when it is the biggest purchase of my family's life.

A good realtor will do the research, provide access to the best lenders and inspectors in the area. They represent the seller to the best of their interest and the same goes for the buyer's agent.

I would be wary of properties being sold only by the seller - and I have been in the business for 20+ years and know what I am looking for. That said, with the proper knowledge, you would be fine.

I hope that helps my friend, but let me know if you have further questions. Best regards,
0 votes Thank Flag Link Tue Jan 28, 2014
These homes have the same Pros and cons as those on the MLS, with one big Difference, if you don't have a Professional agent representing you, You may end up with a bitter experience. Every stage of the buying experience can be a hassle. The seller is hoping the buyer won't have a Realtor ®, and the balance is tilted in their favor. Hope This helps
Web Reference: http://www.lovebayarea.com
0 votes Thank Flag Link Tue Jan 28, 2014
This happens quite a bit actually. And there are a few benefits that mostly have to do with getting a lower price for the property. Have you already made an offer on the property? I would be careful if it is FSBO. Could be a scam.

Alex Greer Loan Officer NMLS #1056079 http://www.TheMortgageOutlet.com 408-352-5147 AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Tue Jan 28, 2014
Rather than worrying about pros/cons--regardless if the home is listed on MLS, or not, if you are not working with an agent consider the idea as he/she can provide any necessary information, handle paperwork, etc.; if you don't plan on working with an agent, consult with an attorney who specializes in real estate for all related paperwork beforehand ...
0 votes Thank Flag Link Tue Jan 28, 2014
Get a buyers agent. Always better to have your own representation.
0 votes Thank Flag Link Tue Jan 28, 2014
Not being in MLS means nothing. Homes listed in the MLS can be grossly over priced just as much as one being sold by an owner as a FSBO. To protect yourself make sure you get an appraisal, that means you or your bank gets it. Don't rely on the seller showing you an appraisal from last year or a recent refi or garbage like that. If no agent is involved make sure you are protected in the contract by using a lawyer to write it. Realtors use contracts that are designed and approved by lawyers, but you can buy a house with a contract on a napkin if you wanted to, but you might not be well protected with it. If a lender is involved then they will want to see a good contract.
0 votes Thank Flag Link Tue Jan 28, 2014
Thanks for your response!

Home is not listed in MLS but there is an sellers agent and would represent buyer as well with all the transaction process. Is it safe?
Flag Tue Jan 28, 2014
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