For Sale By Owner Home Buyers

In the current housing market, it can be difficult to nab that dream property. Homes are selling as soon as they list, and buyers have to move very quickly to get an offer submitted in time for consideration. In this market, some sellers are deciding to list their homes without the help of a real estate agent. This results in many buyers are expanding their searches to include For Sale By Owner (FSBO) properties. There are some things that FSBO buyers should be aware of before they start the process.

If you’re purchasing property with a bank loan, you need a pre-approval letter. Most smart For Sale By Owner sellers won’t let you in the door without one, and for good reason. It’s a waste of time for all parties involved if the bank won’t give you a loan for the amount you need to make the purchase. In any home search, a pre-approval letter is one of the very first steps in the process.

In a FSBO transaction, buyers are dealing directly with sellers. While this can help with negotiations sometimes, sellers tend to have an inflated opinion of their property’s value. You could end up paying far more than you should. Plus, if their price is too high, you can run into trouble when it comes to the bank’s appraisal. We recommend signing a buyer agency contract with a licensed real estate agent so you have an experienced pro negotiating on your behalf. They’ll do a Comparable Market Analysis to see what similar properties have sold for. This info is important to know before you write any offer.

No one knows more about the property than the owner, but sometimes their disclosures can be shaky. They know all the best features, but sometimes they don’t notice significant flaws. A charming quirk could be a major issue. Buyers are strongly advised to hire an independent home inspector to examine the property and compile a detailed inspection report.

Here is an excellent article from the folks at Credible that goes into these things in a little greater detail.

Whether you’re buying a home that’s listed on the MLS or a home that’s For Sale By Owner, our best advice is to get a Buyer Agent. At Northwoods Community Realty, this is a service we provide often. If you have any questions at all about the benefits of signing a Buyer’s Agency Agreement, don’t hesitate to contact us today. We’ve been in this business a while, and we’ve seen how messy transactions can get. We do everything we can to make the process as smooth and painless as possible for our clients.