Can I ask regarding buying a house...

What is the difference between For Sale by Owner and For Sale by Broker besides the obvious...Advantages and Disadvantages. Also my uncle told me that when he bought his house by owner the owner held the mortgage. How does that work also?
Thanks

Re: Can I ask regarding buying a house...

Most sales by owner you deal directly with the owner and they don't have to pay a commission. Not much of a difference in NY since you guys use lawyers for everything anyhow.

And it doesn't neccesarily mean the owner holds the mortgage- that's up to owner if they want to but you could still use a traditional broker or bank to finance the sale.

Message edited 7/5/2006 12:52:29 PM.

Re: Can I ask regarding buying a house...

Usually if it's a true sale by owner meaning no help whatsoever, the owner is not paying a realtor to help sell it. There are companies like FSBO that help people sell their homes for a lower commission than traditional realtors.

Either way, the seller is trying to sell on their own or with some help to avoid paying high commissions to a traditional realtor.

What it means to you? I could mean that you would pay less for the house since the seller is not building in the commission to the sale price. This is not always the case though.

If I were to buy a home that was for sale by owner, then I would contract a buyers broker to protect my best interests and negotiate on my behalf. Some owners are too close to the situation to understand the market and what things are worth and to know a good buyer when they present themselves.

Re: Can I ask regarding buying a house...

Thanks I think Im getting it now.