Important Tips When Buying a House For Sale by Owner
If you’ve been spending a lot of time as of late looking for a house to but, you probably have encountered a few prospects with a sign, “For Sale by Owner.” Now supposed you happen to like one of them houses with that sign, you’re probably wondering what it really means and if it is any different to other homes without that sign.
The first thing you want to remind yourself is that when you buy a house being sold by the owner and without a middle man poses some risks but very enticing advantages as well.
In the traditional means of selling a property, the owner usually lists it through a real estate agent. The tradition also includes the responsibility of the homeowner/seller to pay his or her realtor as well as the realtor who represents the buyer. Hence, it’s no longer a surprise that some people would prefer selling their own property without the help of an agent in order to save money. That’s why they put up the sign in front of their home for sale – “For Sale by Owner.”
Read the rest of this article for you to learn some important tips on how to deal and handle this kind of real estate transaction.
1 – Know that there are some services you no longer will get due to the absence of a realtor.
Now let’s say you’ve been working with a real estate agent while looking for a new place to purchase, but suddenly you found that one with an “FSBO” sign and you feel like it’s really the one. The thing is when you decide to purchase the home with an FSBO sign, it means you can never continue working with the realtor for the simple reason that the seller won’t be giving any commissions.
2 – Get a mortgage pre-approval first.
If you have been looking for houses at this moment, it means you already got your pre-approval for a mortgage. If you don’t have one, then stop looking and focus on getting it first. Talking to an owner/seller without presenting a pre-approval letter will likely turn them off, suspecting that you’re nothing but a window shopper.
3 – Never intend to skip the home inspection.
Know that even without the help of a realtor, there are certain steps in the home buying process that you can never afford to skip. For instance, doing a home inspection is a must. For you to get the assurance that the property does not have hidden problems that could cost thousands of dollars in repair later, you need to tap the services of a qualified professional to do the home inspection.