Home owners who are looking to save the expense of a real estate commission may try to sell their house without listing it with a real estate broker. This creates both pitfalls and opportunities for buyers. If you are interested in a FSBO property, tread carefully to avoid problems.

One of the benefits that working with a broker has is their knowledge of what homes are worth. If you are working with a buyer's broker, they will be able to guide you through the process of determining what the FSBO property is worth, and how much you should offer. If you are not, it will be worth your money to be for an independent appraisal. Although you can research values yourself, there are many factors to consider when coming up with a price for a specific property that require more experience than an average buyer usually has.

In a typical real estate transaction, there are two agents. The listing agent, who markets the property, and the agent who finds the buyer. In both cases, the agent actually represents the seller's interests and each receives half of the commission. Occasionally, the agent who brings the buyer to the property is a "buyer's broker", who, although they may be compensated by the commission paid by the seller, is contractually obligated to represent the best interests of the buyer. When looking at a FSBO, if you are represented by a buyer's broker, and the seller is not willing to pay the commission split that the agent would usually receive from the listing agent, you may be responsible for the commission yourself, depending on the terms of the contract you signed with the agent. It may be worth it, however, as the agent has the professional expertise to help you through the buying process.

While it is always wise to have an attorney who represents you involved in drafting an offer and a purchase and sale agreement, it is particularly important when there is no broker involved. You'll want to make sure that you'll be able to recover your deposit in the event that the sale doesn't go through because of something uncovered later in the process; an attorney can help ensure there are no legal surprises, and, if there are, you'll get your money back.

A home inspection is an important step in any home purchase. When a broker is involved, they usually accompany the home inspector during the process. A buyer's broker can help you determine which issues are deal-breakers, which require a modification of the purchase price, and which are not a problem. If you don't have a buyer's broker, you'll want to hire a home inspector who can give you a thorough understanding of each issue he identifies, as well as the cost required to fix the problem.

While buying a FSBO can be an opportunity to save money, as the seller won't be turning over 5-6% of the sales price to a real estate agent, it can also pose challenges for the buyer. You'll need to ensure that you thoroughly understand the value of the property you're purchasing, get good legal advice, and understand any issues found by the home inspector.