DIY Disaster: When Homeowners Play Realtor

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Ever wondered why real estate professionals cringe when they hear "For Sale By Owner"? Barb and Bill pull back the curtain on the FSBO world, exposing why these transactions frequently end in disaster.

The allure seems simple - save on commission by selling your own home. But as our hosts reveal through hair-raising stories and first-hand experience, what appears to be a money-saving move often becomes a financial nightmare. When a homeowner in St. Louis Park had to tear down walls after closing because of undisclosed structural issues, the seller learned the hard way that "ignorance is no excuse" in real estate transactions.

From contracts written on napkins to hidden assessments costing sellers thousands, the podcast explores how the lack of professional guidance can lead to catastrophic outcomes. Barb even shares her own humbling experience attempting to sell FSBO with three kids under six, standing awkwardly at open houses with garage sale signs, before eventually listing with a professional and selling in just 10 days.

The most chilling revelation? When real estate professionals see a FSBO listing, their first thought is often "What are they hiding?" Whether it's clouds on the title, unpermitted renovations, or disclosure landmines, the risks for both buyers and sellers in these transactions extend far beyond the closing table. As Bill bluntly puts it, when you sign a FSBO contract without representation, you can find yourself "contractually fucked."

Share this episode with anyone considering buying or selling without representation – it might be the most valuable real estate advice they'll ever receive.

0:00 Episode Introduction

0:35 Why FSBOs Bug Real Estate Pros

3:43 Contracts and Disclosure Requirements

7:12 Hidden Problems and Disclosure Landmines

12:17 Limited Service Listings Explained

15:50 Barb's Personal FSBO Experience

21:14 Pricing Mistakes and Financial Losses

38:42 Assessments and Hidden Costs

44:57 Episode Closing