If you’ve looking for a house to buy lately, you probably have come across a sign in one or a few prospects, saying “For Sale by Owner.” And if it so happens that you fancy one of them, you’re probably wondering what that sign means.
First things first, buying a house being sold by the owners themselves come with certain risks and benefits.
In the usual real estate transaction, a homeowner lists his or her home 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. This is why you see some homes being sold with a yard sign saying, “For Sale by Owner.”
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So if you want to learn how to take advantage of this type of real estate deal, read the tips below.
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1 – Be reminded that some typical services are no longer there if there’s no realtor involved.
So you’ve been working with a buyer’s agent while searching for a house to buy, but what if you eventually decide to get the one with the “FSBO” sign? In case this happens, it only means that you have to prepare yourself in making a deal or purchase without the help of that realtor because an FSBO type of property explicitly excludes giving commissions to realtors.
2 – Don’t forget to secure 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. But if you actually don’t have one, it means you must stop whatever you’re doing right now and put all your efforts in getting a mortgage loan. 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.
Keep in mind as well that even though there is no realtor involved, you still have to go through the important processes in home buying. One of those steps is the home inspection. Problems, minor or major, may have been missed out or purposely hidden by the owner, so the only way to discover them is by having a professional home inspector check it.
So those are just some of the few things you need to do when you’re buying a house for sale by its owner.