3.3 min read
FSBO properties are enticing for many buyers due to a potentially lower list price than realtor-sold properties. If you want the most for your money, you have probably wondered how to buy an FSBO property without a realtor. Remember that you must be ready to work, or this option will be a waste of time.
What is FSBO?
An FSBO (For Sale by Owner) is a property sold without the help of a real estate agency. While FSBOs typically fail, there are still many cases where the owner has been educated and resourceful enough to make it work!
How Can I Find an FSBO?
If you are hunting for an FSBO property, here are some straightforward strategies to help discover For Sale by Owner homes near you.
Check the Newspapers
While most news is on television and online, nothing beats an old-fashioned newspaper regarding local home listing information! Many FSBOs pay a small price to get their listing into your local paper!
A simple google search for ‘FSBO near me can go a long way toward finding available homes near you. Additionally, many FSBOs utilize social media to get the word out about their selling property.
Go for a Drive
If you have ever been driving through a neighborhood and saw a plain “For Sale” sign in the yard, the chances are that you spotted an FSBO home. For that reason, driving around can sometimes allow you to locate properties not listed anywhere else!
How to Buy an FSBO without a Realtor
Acquiring an FSBO home without the help of a realtor is entirely possible, provided you do your research and take all the proper steps:
Get Pre-approved for a Loan
Nothing says ‘serious buyer’ like approaching an FSBO seller with a pre-approved loan in hand! Furthermore, pre-approval offers realistic expectations about your negotiating margins and how much you can spend on a home.
Make an Offer
Often, FSBOs need more time to handle multiple offers simultaneously. For this reason, you must make a fair and reasonable offer upfront. To do this, you should study the local housing market and determine what amount can get you a good deal while still being enough to capture the seller’s attention.
Negotiate the price
In every home purchase, it is important to negotiate. You want the best price you can get on a property. Sellers expect negotiations and usually have their houses priced with room to sell for a little less once the haggling is over.
Appraisal and Inspection
It is essential to have an appraisal and thorough inspection done in an FSBO transaction. Not having a realtor involved adds significant risk to both parties due to a lack of experience and legal knowledge!
Title insurance is vital with FSBOs because it protects you from any losses you may suffer due to liens on the property, back taxes, or conflicting wills!
The Safe Choice
If you are well-versed in home buying or at least willing to learn, buying an FSBO without a realtor can be a rewarding experience! However, if you have doubts or don’t want to take on this risk alone, realtor fees are a small price compared to something going majorly wrong with the purchase!