What You Should Do 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.” And if it so happens that you fancy one of them, you’re probably wondering what that sign means.
The one thing you need to understand first and foremost is that buying a house being sold by the owners without the representation of a realtor comes with definite benefits as well as some risks.
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. So in order to save money by not being forced to pay a realtor, some people decide to list and sell their own home or property. That’s why they put up the sign in front of their home for sale – “For Sale by Owner.”
So if you want to learn how to take advantage of this type of real estate deal, read the tips below.
1 – Be reminded that some typical services are no longer there if there’s no realtor involved.
What if you’ve been working closely with a realtor in your search for a new home, but you eventually found one with an “FSBO” sign with it? If this happens, you need to be prepared to go on with the purchase without the realtor because they work for the commissions, and in a deal with an FSBO, the seller will never give one.
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. But if you still don’t have one, it means you should stop looking for houses to buy and instead make sure you get a pre-approval first. If you go ahead and try to make a deal with the owner/seller of the house you want to buy without a pre-approval letter, it means they likely will not take your offer seriously.
3 – Don’t forget or skip the home inspection part.
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. One of those steps is the home inspection. 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.
Keep those reminders in mind whenever you’re finally buying a house that’s for sale by the owner and without the services of a realtor.
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