Debunking Myths About For Sale By Owner Homes

By Matt Baumberger

When looking to buy a home that is for sale by owner, you may hear negative rumors about it. F.S.B.O. homeowners aren't serious about selling, they will not negotiate on price, they hide problems with the home and a lot more ugly myths. Real estate agents are some of the first people to implore these negative "tags" on these type of homeowners. A F.S.B.O. home could save you lots of cash when compared to a property listed by a real estate agent. Taking some incentive could land you great savings.

Homeowners that are selling their houses without a Realtor normally want to sell it quickly. Financial woes and the home being listed for months without any offers are a few reasons behind this thinking. These possible problems are excellent news for a potential buyer because the homeowner may be willing to let the house go for less than the asking price in order to sell fast.

A for sale by owner homeowner probably is selling their house themselves to avoid Realtor fees and commission. This is a big reason why they are deciding to sell the home themselves. Many real estate agents and agencies have a number of clients. This can make the homeowner or buyer feel pressured to complete the transaction and feel like the Realtor isn't being personal enough.

A real estate agent may not know the kind of area or specific quality of life a potential home buyer is looking for. Buying a property that is for sale by owner leaves the real estate agent out of the picture and puts you one on one with the homeowner. They will no the important details like the best schools, local babysitters, good parks and recreation areas, and other possible factors.

This is how you buy a property that is for sale by owner. Hypothetically, let's say you have discovered a home you might want to buy. Check out these things you should do and be familiar with to make sure the buying process goes as painless and smooth as possible.

With the seller's permission, buy a C.L.U.E. report. A Comprehensive Loss Underwriting Exchange report, aka C.L.U.E. report, is just like a credit report but it has insurance claim data instead of credit information. Thirteen bucks will buy you one on line. The most important data on this report is water damage. You always want to know if mildew or mold are present in a home you may purchase.

Then you will want to find the CMA for the area. CMA stand for Competitive Market Analysis. This will give you information on selling prices for properties in the neighborhood. It only contains homes that have been listed on the MLS by a Realtor. Zillow.com has a little data on home prices. Even if they are not involved in the sale, a real estate agent may still be willing to get you this information and data.

Pay an inspector to look the house over. They should inspect the electrical and plumbing, structure, and other necessities. The inspector will uncover any issues the home may be hiding. A homeowner selling a property for sale by owner might not know of all the problems the home may have.

Since a real estate agent is not involved with any part of the buying or selling process, you are responsible for all things they would normally take care of. Buying title insurance, searching for a title company to hold the down payment, and drafting a contract to purchase will all be up to you. Always consult a lawyer with any legal questions.

Real estate agents will try to discourage you from buying a F.S.B.O. home with myths and opinions. Pursuing a home that is for sale by owner will consist of more leg work on your part but, can save you money in the end. Saving money is important to everyone, especially when purchasing a home.

About the Author:

Learn more about buying a home that is for sale by owner at The House Source. Stop by Matt Baumberger's site where you can find out all about real estate investing and what it can do for you.