Homes For Sale By Owner: What You Need To Know
Houses that are listed as FSBOs or For Sale By Owner are listed without the help of a real estate agent.
If done correctly, a house for sale by owner may mean savings for the current homeowner or seller.
However, whether this equates to savings for the buyer or not is another issue.
Whether you are buying a home directly from the homeowner or from an agent, you will need to follow the same steps.
Here are some helpful tips for buying homes for sale by owner.
1. Get pre-approved for mortgage
Before you begin the process of looking at different houses that are currently available on the market, you should get your mortgage pre-approved. This way, once you start with the price negotiations with the seller, you can present the pre-approval letter.
The pre-approval letter from a mortgage company provides a number of benefits for buyers.
For one, it lets the owner know that you are offering a serious bid. Plus, it also lets the seller know that you can pay for the property.
2. Hire a buyer’s agent
The seller may not be using the services of a real estate agent to sell his home but this does not mean you can’t have one. A buyer’s agent can help you find the right property for your needs.
They will typically browse through ads made by other sellers and real estate agents to find the most suitable properties for their clients.
Agents rely on commissions, regardless of whether they are on the side of the buyer or the seller. In the case of the buyer’s agent, they will often ask the seller to pay them their commission directly.
An alternative is that the seller will provide the buyer with credit at closing. The buyer can then pay the agent his commission.
3. Keep your eye on the property
Often, when it comes to an FSBO property, the owner or seller will be the one who gives you a tour. This may sometimes make viewing and examination of the property more uncomfortable.
However, if you are serious about buying the property, careful examination is necessary to prevent any heartbreak or disappointments.
If you can, hire an expert home inspector to do this for you so you know what problems you may need to deal with when the property becomes yours.
A home inspector can check the condition of the walls, ceilings, floors, cabinets, electrical wiring, piping, moisture levels and other aspects that your eye may easily miss.