For sale by owner is commonly referred to as FSBO, This is another form of offline resources when it comes to home search. This method does not need the services of an agent or a broker. Sellers want to avoid paying commission for the transaction.
When you buy a home directly from the homeowner is just as easy as when you ask your agent to buy the home for you. The only difference is that you go through all the logical steps by yourself and work directly with experts. That is what an agent will do.
Tips in Transacting with a Home Seller
- You have to determine where you want to live and how much can you afford to buy a home. These are two major and important factors to consider before searching for a new home. Homes near major zones in the suburbs will cost more than the homes on the outskirts of the city.
- You must be able to present a pre-approved for a loan because this will prove to the seller that you are a buyer in good faith.
- You must be ready with all personal documents to show proof that you are capable of paying the price for the home.
- Now you can start searching of a home. You can use online or offline resources.
- Once you have found a home that fits your needs and requirements, contact the owner directly. Or if possible visit the owner so you can have a tour of the home. Ask questions. Make sure you are satisfied that the home meets all your needs such as style and function.
- Get a report of the value of the home so you can compare it to recently sold homes in the neighborhood.
- Get a local lawyer to help you with the offer and the closing.
- Make an offer and negotiate with the seller.
- Once both of you have agreed, go to your lender for a commitment for the mortgage. They will send someone to appraise the home.
- Have the placed inspected by a license inspector to determine any structural or mechanical problems.
- Re-negotiate when necessary.
- Close the deal.
- Get your keys.
If people do not need an agent to sell their home, definitely buyers do not also need an agent to buy their new home. You can always do it on your own.