Another Southeast Michigan Real Estate For Sale By Owner (FSBO) Disaster, Part 2

Posted in Southeast Michigan Real Estate by Michigan Real Estate Expert on June 30th, 2008

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County, Southeast, Michigan. About a year ago, I posted a blog entry about a law client of mine that decided to sell his home by himself on land contract to buyers he found through Craig List. For the record, I did advise him against it. According to the National Association of Realtors Survey of Home Buyers and Sellers, on average, FSBO sellers sold their homes for 25% percent less in 2007 than they would have, had they used the services of a realtor. Moreover, the fact of the matter is that if someone needs to buy a home on land contract, red flags should be flying all ove the place. I regularly advise my clients that if a bank has decided that the buyer will not pay the bank back, what makes you think they will pay you back?

Now, a year later, the client wishes he had listened to my advice. First, he sold the home for 32% less than the lowest comparable sale. Second, he has been in and out of court as the buyers rarely made their payments on time. Now, the seller has taken the home back through court proceedings and the home has been destroyed on the inside. I do feel bad for the client but you have to wonder, will he listen to my advice the next time? For his sake, let’s hope so.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
Call:  248-514-2640

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