Around 20% of properties sold in the real estate market undergo flat fee MLS. These homes are known as for sale by owner or FSBO homes. Now, as the buyer, you may be wondering how to buy one from such lists. Will it be of help to use an agent to get the property you are eyeing for?
Reality is some of you may be busy to look into a list of homes before buying one. This makes you hire an agent to help you find the right property. But, this traditional process is cumbersome.
10 things to do when buying for sale by owner homes
Eliminate the need to hire agents and do the buying of the FSBO property on your own. After all, you can look into a flat fee MLS to help you decide the right property to buy. Here are tips to bear in mind:
1. Budget is important. Set the price you are willing to pay for any property. This can help lessen the burden of having to browse all the items listed on a certain page of a website. With a budget in mind, you can simply pick up from listed properties within your set range.
2. Seek for pre-approval. This is required if you want to proceed to home buying with much ease. This can help you attain the mortgage amount you want. Make sure that you have a strong credit score though.
3. Start doing your FSBO searches. This is where you may browse through flat fee MLS.
4. Call the property owner. At least, you will get to assess the integrity of the seller. Take the chance to ask all the questions that you have regarding the listed property.
5. Proceed to obtaining the valuation report. This one is a report on the property you are eyeing to buy. You can have the report before or even after you have viewed for sale by owner property. You can use this to compare the home's price with that of other properties within the neighborhood.
6. You also need a lawyer. If counseling on home buying is what you want, this expert will help. He knows how the business goes. Use an attorney who knows about the area where you are eyeing to buy property.
7. It's about time you make your offer on the FSBO property. After hiring an attorney and seeing the home, you can now make necessary bargaining with the seller.
8. Deal with your mortgage application. Once the seller of for sale by owner property accepts your offer, you can now look for the best mortgage rate for financing the home. The lender will then lock in the mortgage rate you have accepted and help you close the transaction.
9. Home inspection comes next. Hire an inspector to do this job. This may cost you more but can make you confident enough to buy the FSBO property. Require the inspector to submit his report regarding the home.
10. You may now close the transaction. Once you have followed all the tasks mentioned above, it's about time you close the deal. If there are some documents that are needed, your attorney will inform you about it.
As you follow the steps recommended above, you are sure to make your investment on for sale by owner home all worth it. Always make the necessary researches.