Advantages of buying a for sale by owner home include avoiding agent fees, not having to endure potential pressure from an agent and better opportunities to bargain with the seller, according to Quicken Loans. Another benefit is the owner has better knowledge of the home and neighborhood.
Buying a for sale by owner home can be equally beneficial for the buyer and the seller, notes Quicken Loans. In addition to the buyer not having to pay agent fees, the seller doesn't have to pay commission to a real estate agent. Not having to pay a commission means the seller may not mind selling the home for less than his asking offer. Buyers benefit by having accurate information about local schools, the advantages of the neighborhood and information about neighbors.
One of the disadvantages of buying a for sale by owner home is there's a good chance that neither the seller nor the buyer has much real estate knowledge, meaning obstacles and pitfalls are more likely, states Quicken Loans. There is also a greater chance the buyer may be forced to purchase a home he doesn't want if there are legal complications. This can be avoided if the seller and buyer agree on what they need to have done to the home before an agreement can be reached.