For Sale by Owner Real Estate
For sale by owner real estate is popping up all across the nation. Oftentimes referred to as "FSBO" properties; this type of real estate transaction can benefit all parties involved. However, buying FSBO real estate is not without risk.
When a homeowner offers for sale by owner real estate, there is a potential for buyers to save thousands of dollars. First, and foremost, FSBO properties are sold and purchased without involving a real estate agent; thus eliminating an expensive realtor commission fee.
For sale by owner real estate also offers bargains for first-time home buyers or those looking to purchase a low-cost second home.
When purchasing for sale by owner real estate, the first step involves determining how much you can afford. There is no point in wasting time looking at properties you cannot afford. Considering nearly 20-percent of the houses on the market are FSBO, you should be able to find plenty of homes within your budget.
Experts recommend buyers obtain pre-approved financing in order to expedite the sale. Providing a pre-approval letter shows sellers you are a serious buyer who possesses the financial means to purchase their home.
There are numerous ways to locate for sale by owner real estate. One of the easiest ways is to drive through neighborhoods where you are interested in purchasing property. Take along a pen and pad of paper, as well as a digital camera. Make notes about the property, including the address and phone number listed on the FSBO sign.
The Internet is a valuable tool when it comes to locating for sale by owner real estate. Many websites are dedicated to FSBO properties. Two of the more popular include www.ForSaleByOwner.com and www.FSBO.com.
Once you have narrowed down your search, it is time to contact the property owner. If the purchase price was not listed, it is important to ask the homeowner the selling price. Ask the seller pertinent questions regarding the property such as when it was built, square footage, average utility costs, property tax rate, and if the home is located in a flood zone. If you are still interested in the home, arrange an appointment to view the property.
It's a good idea to obtain a comparative market analysis to determine if the purchase price is comparable to other homes recently sold in the area. A good source for obtaining property valuation reports is www.RealtyTrac.com.
It is also a good idea to hire a qualified real estate attorney to guide you through the process. Experts suggest using a local attorney who is familiar with local ordinances and state disclosure laws.
If you are interested in purchasing the property, you will need to obtain a home inspection. Inspections generally cost about $300 to $600. The home inspector should check the home from the foundation to the roof and provide a report describing any structural or mechanical problems. The more problems the property has, the more bargaining power you have to negotiate the purchase price.
In today's unstable real estate market, it is imperative to become educated about buying any property; but, particularly for sale by owner real estate. We invite you to learn more about purchasing real estate in our all-inclusive real estate investing article library. We offer tips, tricks and tools to help you obtain the best real estate deal.