Important Tips When Buying a House For Sale by Owner
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.” 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 usual case of selling a property in the market, the owner of that property will list his or her home through a real estate agent. In this arrangement, the home seller/owner will also be carrying with him or her the responsibility of paying the realtors’ fees, both to his or her own agent and the agent who represents the buyer. Therefore, in order to save money by avoiding the usual commission or fees to be handed out to a realtor, a lot of people these days who sell their homes or property choose to list and sell their property on their own. This is why you see some homes being sold with a yard sign saying, “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 – 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? 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’ve been looking for prospects as of late, it only means you already obtained a 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 home inspection.
The absence of a realtor does not mean you also skip important steps in the home buying process. For one, you can’t miss out on 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.