For Sale By Owner Resources
Although buying a home from FSBO sellers has its perks like getting rid of third party agents, buyers must beware. These FSBO ( For Sale By Owner ) sellers are also called as Fizbo, who may charge you ten to twenty percent more than the current market price. Sometimes, these FSBO sellers will do anything just to sell a home, which can mean concealment of minor repairs to issues in transfers of titles.
Unlike professional real estate agents who know the processes involved in buying and selling a home, most of these FSBO sellers are in the dark. Since they are their own agent, they might miss a few important things in order to have a smooth negotiation. These negotiations can even become emotional as these FSBO sellers feel sentiment to their homes for sale.
Five Questions You Can Ask FSBO Sellers:
1. What made you decide to sell your home?
You need to know the motivation behind the selling price and terms that these FSBO sellers have come up to. You can determine those who are pretending to know what they’re doing from those who don’t.
2. How did you come up with the selling price?
Normally, FSBO sellers will come up with a price comparable to other nearby homes for sale. Beware of those who set prices based on original purchase price.
3. How much did you originally bought the home?
Don’t fall into the trap of buying more than what these FSBO sellers have bought.
4. Are defects reported in the disclosure statement?
Disclosures may be or may not be required by state laws but having it in writing prevent future legal issues.
5. Are there any off-site projects that may affect the value of the home?
If you’re buying a home near an airport, or which will be affected by a road-widening project, you need to call the deal off.
These are tough questions to ask and it takes proper timing and daring in order to get an honest answer from your FSBO seller. The most common reason for buying homes from FSBO sellers is the huge amount of savings and quick sales they can get. You can negotiate terms directly without unnecessary hassles. Other than lack of expert knowledge, the only drawback is for having competitions as these FSBO sellers entertain multiple bids.
How to Minimize Issues When Buying A Home from FSBO Sellers
1. Inspect the property personally or hire a professional inspector to make the inspection and come up with an appraisal.
2. If major repair in electrical, plumbing, heating, or septic systems are not met by these FSBO sellers, you can always back out from the deal to avoid complications.
3. Secure a CLUE or a Comprehensive Loss Underwriting Exchange Report. This will show you the five year insurance claim history on the property. It is like a credit report, only that it focuses on the damages and repairs incurred along the years.
4. Try getting a CMA ( Comprehensive Market Analysis ) of the neighborhood where your prospect home is located. This can be requested from a real estate agent or a tax assessor, where quotes shall be based on street address or zip code.
When you are ready to buy that dream home from these FSBO sellers, try to deliver what you have promised in the commitment document. Know the escrow procedures in the local state to have a smooth payment process. Normally, closing of sales follow after 30 or 45 days when the sales documents are signed. All legal documents must be carefully reviewed by a certified lawyer. Buy Safe!
RESOURCES:
http://www.newportlandhome.com/5_TOUGH_QUESTIONS/page_1411483.html
http://www.realestatejournal.com/buysell/agentsandbrokers/20030623-doherty.html
http://www.fsboads.com/p1-buying-fsbo-home.htm
RealtyTrac. ” For Sale By Owner (FSBO). ”
http://www.realtytrac.com/images/pdf/guide_fsbo.pdf
