What You Should Know About Buying A For Sale By Owner Home
There are house sellers that prefer the help of a professional realtor to sell their house. However, there are For Sale By Owner Home sellers who prefer doing it on their own. These sellers list their house as FSBO or “For Sale By Owner”.
FSBO listings are not that common, and many people think that because realtors are not involved, the process is easier. This is not necessarily true.
Basics of For Sale by Owner Home Listings
Let’s talk about the basics of For Sale By Owner Home listings so you know what you’re dealing.
1. What exactly is a FSBO?
As mentioned, a For Sale By Owner Home listing is a kind of house listing where the owner skips hiring a realtor. The owner does everything on his own such as marketing, open house, negotiating with potential buyers on the price, and closing the sale. Simply put, the transaction is direct between the seller and buyer.
2. Things to Consider with FSBO
For Sale By Owner Home listings sound ideal because there are no realtors in between which could mean lower prices and easier communication. But, that’s not the case at all because of the following:
- Sellers usually miss the mark on the price. This could be because of two things: they still have an emotional attachment to their house, and they are not familiar with the actual market value of their property.
- Real estate laws still apply. Remember that a lot of FSBO sellers are not familiar with the laws that govern the real estate industry in their specific state. The seller might not allow you to do your due diligence because they want things done their own way.
- It’s possible for the home to be subpar without the seller stating so. This could be because of a lack of home inspection. To reduce your risk as a buyer, home inspections should be mandatory.
- Meeting with the owner of the house could get awkward if the seller has an emotional attachment to the property.
- Negotiating for a good price might also be a process that will take time and a lot of effort. The owner may be unwilling to negotiate with you.
There are a lot of other things that need checking with a For Sale by Owner Home listing. Just because a seller wants to go the direct route, it doesn’t mean that you have to. If you’re as clueless yourself, it’s best to talk to a real estate expert who can advise you on how to go about purchasing a property like this. Remember that it’s not a simple buy and sell transaction because legalities will be involved, and, of course, you’d want to get the best value for your money when buying a For Sale by Owner Home or not. If you’re looking for an experienced real estate solutions professional to discuss about a For Sale By Owner Home listing in the Twin Cities area, contact Gold Path Real Estate at 612-758-007. Don’t forget to check out our other posts on our blog.