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5 Secrets to Successfully Buying a FSBO Home

You can find amazing residential property deals if you buy a FSBO home. FSBO homes are residential properties that owners sell themselves. In my last blog, I wrote about how to sell your home yourself using the “For Sale By Owner” principle.

However, how can you successfully buy a “For Sale By Owner” home?

Here are my best real estate tips on getting a great deal when buying directly from the owner.

1. Get pre-approved

Getting a pre-approved loan is one of the first and most important steps if you want to buy a FSBO home. This will save you a lot of time looking around for properties that, in the end, you can’t afford. Usually, to get pre-approved your lender examines your finances and agrees on a mortgage amount they will lend you when you buy the property.

This can help close a deal quickly because your FSBO seller is sure that the finances will go through.

2. Make a list

Once you have a budget in mind, you should make a checklist to determine what you are wanting from your property. Some buyers want to buy directly from the owner to flip the property and make a profit. However, most buyers are looking for a great deal on a property to live in. So, list all the features that you want from your property. This will save you a lot of time and help you find a home quicker.

3. Save money

Even though you have a pre-approved mortgage, it is still wise to save as much money as you can. Remember that there are more fees when you close the deal. You may have to arrange a building inspection and pay for other closing costs. So, the more cash you have at your disposal to cover these costs, the more or your mortgage can be used to purchase the home.

4. Negotiate

Most FSBO sellers are willing to negotiate on the price. One of the best ways to find out a starting price is to look at similar properties in the neighborhood and start from there. Remember, don’t start so low that you offend the seller. However, once you make your offer, the only way is up. So, take that into account and make an appropriate starting offer.

You should also negotiate certain clauses in the purchase contract in case anything goes wrong. These could include get-out clauses if the home inspection reveals major defects and the seller isn’t willing to pay for the repairs. My advice when someone is wanting to buy a FSBO property is to have a lawyer draw up a purchase contract.

5. Home inspection

Sometimes For Sale By Owner sellers like to hide some of the problems with the house. Because you may not have the expertise of a realtor, you should always arrange for a home inspection. This will identify any potential problems with the property. Although there is nothing wrong with buying a property to fix up, you should know the size of the task ahead and how much it will cost.

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5 Reasons You Can Sell Your Own Home

It used to be the case that people wanting to sell their own home didn’t have much choice. They either listed their home with a real estate agent or they couldn’t sell. Now, the property market has opened up and many homeowners are choosing to sell their home FSBO – or, For Sale By Owner.

If you are thinking about selling your home for cash, you may find the whole process overwhelming. That, of course, is understandable, especially because selling or buying a home is a large financial investment that is bound by contracts.

There are basically 2 reasons why homeowners choose the FSBO route:

  1. They save on agent’s commission fees, which can be up to 6% of the sale price.
  2. They retain control over the selling process and can usually sell their home quicker.

If you are interested in selling your own home, here are my 5 tops reasons why you can do this.

1 Use Flat-Fee MLS Service

A Multiple Listing Service (MLS) lists homes for sale across the whole country. These services help you set a price, list your home, open escrow, and help with other transactions. You can even get a professional-looking “For Sale” sign for your yard. The beauty of this is that you can do all this yourself, with having to pay hefty fees to a real estate agent.

2 Do your own research

With internet access and access to many online real estate portals, you can do your own market research to sell your home quickly. All you have to do is search for similar properties in your area to see what they are selling for and how the properties are being marketed.

3 Get the right price

One of the advantages of selling your own home is that you can get the right price for it. One advantage that this gives you is that you can make your selling price more competitive. Remember, you are already saving money on real estate agent’s fees, and you can use this to list your home for a competitive price.

4 Use services of others

Although you want to sell your home yourself, you should also use the services of an appraiser and building inspector. For a relatively small fee, an appraiser will help you value your home at the best current market price. However, it is then up to you to set the listing price.

You also should have a building inspector inspect your home. His report can help speed up the sale of your property because lets potential buyers know that the house is in good repair and there are no hidden structural issues.

5 Know your property’s strong points

Another reason that you can sell your home yourself is that you know all the strong points of your property. These include renovations that have been carried out or work that has been done to prepare the property. When listing your home, you should make sure and mention all the features that may appeal to potential buyers.

Even though there is more to do when arranging a “For Sale By Owner,” if done right you can sell your home quicker and get more money than if you used a real estate agent.

For Sale By Owner – Top Tips

With rising real estate agent’s costs, many homeowners are now choosing to sell their home by themselves. The popularity of “For Sale By Owner” (FSBO) has meant that more and more people are becoming their own property agents.

In my latest blog, I’m going to guide you through the process of selling your own home. In fact, selling your own home is much easier than you may think. FSBO will save you a lot of money when you become your own realtor.

Top Tips For Sale By Owner

If you want to sell your own home for cash, you need to know how to list the property, show it to potential buyers, and close the deal. Here are 4 basic things you should remember on For Sale by Owner sales.

1 Prepare your home

When it comes to selling your own home, presentation is the key. Your home should be in a “show home” condition. This means decluttering your home as much as possible, fixing up the yard, and doing minor repairs.

You can help to make a good impression by having a few scented candles around to give a nice aroma when buyers walk around.

2 Get the price right

Next, you need to make sure and price your property properly. Many FSBO home sellers make the mistake of over-pricing their home and then they wait a long time to receive any offers. You should see what similar sized homes in your area are selling for and then set the value accordingly.

Remember, though, that any buyer will want to negotiate the price and therefore you should add about 5 to 10% above what you want to sell your home for. This gives you some leeway to drop the price and still make a profit.

3 Market your home properly

“For Sale by Owner” sellers need to advertise and market their homes properly. Here are some of the best ways to do this:

  • Get a lot of exposure listing your property on online line real estate websites.
  • Take high quality photos of your home to show its potential.
  • Get a professionally produced yard sign.
  • Get an information sheet professionally prepared to give to potential buyers.

4 Get a real estate lawyer

Although you can do most of the negotiating and advertising yourself, it’s always wise to hire a real estate lawyer. Although this is an additional expense, it can save cash and a major headache in case anything goes wrong.

An experienced lawyer can help guide you through the technicalities of offers that have conditions attached, handling the escrow payments, and reviewing contracts.

Although many “For Sale By Owner” sellers are successful in selling their home, others have found it advantageous to sell to a real estate wholesaler. For example, in the Dallas-Ft Worth area, many people trust DFW Real Estate. They are a trusted company who have years in experience of helping home owners quickly sell their homes for cash.

In conclusion

You too can become a successful For Sale by Owner seller if you get to know your market, make sure and don’t over value your property, and take legal advice when needed.