Why Buy a FSBO Home?
There are several advantages to buying property directly from the owner. One major benefit is that the homeowner knows more about the property than anyone else. The homeowner should be able to answer any question that you have about the property. Buying a FSBO property also allows you the opportunity to negotiate the terms of the sale directly with the owner. You will also save considerable time because you can choose to select just the properties that meet your requirements, and you can arrange home showings according to your schedule. FSBO Greater Portland provides an area map highlighting the exact location of each FSBO home, so there won’t be any surprises as to the location of each property. You will also have the opportunity to seek out any professional assistance you might need, such as from an appraiser or an attorney. Chances are also very good that you will save some money, because the asking price will be lower than if the seller had to build in a real estate agent commission.
It is not difficult to buy for sale by owner property, but it is important that you seek the right guidance to ensure a smooth transaction. For professional help please refer to our list of Real Estate Services.
10 Steps to Buying a FSBO Home:
1. Decide What you Want
A good place to start is to determine what features you want in a home, and what features you must have in a home. Search for properties that meet your criteria, and consider if these homes are within your budget. It is important to determine how much are you are willing to spend to get the features you want.
2. Pre-Qualified
Unless you are paying cash, strongly consider being pre-qualified by a lender before looking at any property. Nearly all lenders are happy to do this for you, without any cost or obligation. By taking this step first, there will be no disappointments to you or a seller when you find something you want. It will also give you a good idea of the price range you can afford.
3. See Homes
Set up appointments to see homes that meet your criteria, or attend open houses. Ask the homeowner questions about their property and make notes about what you like and don’t like.
4. Make Offer
Once you have found a home that you want to purchase, complete the Residential Purchase Contract form to make a formal offer. You may wish to consult a real estate attorney to assist you with the written offer. Present the offer to the seller.
5. Negotiate
Unless your first offer is accepted, you will need to prepare to negotiate the terms of the offer, which are likely to include price, among other things. For more information on negotiation, see the articles under Buyer Resources.
6. Meet Contingencies
Once an offer is accepted and signed by both parties, you will need to satisfy all contingencies (i.e.: financing, home inspection) that were part of your offer. For example, you will need to obtain proof from your lending company that you have obtained the financing to purchase the property.
7. Pay Deposit
Once your offer is accepted you will need to pay to the seller a deposit in the form of an earnest check. This earnest money is usually held by the seller or in escrow. This money protects the seller should you back out of the agreement.
8. Prepare for Move
Prepare for your upcoming move by calling utility companies, notifying the post office, and obtaining all necessary moving supplies and services. Should you want to hire movers, see Portland Maine area movers for a list of local movers.
9. Final Walk Through
Within a few days of your closing, you will want to do a final walk through of the home. This is a good opportunity to ensure that all the details of the offer have been met, and to make sure the property is in the proper condition prior to the closing.
10. Closing
It is important to keep in touch with the seller, your lender and your attorney (if you’re using one) up until the closing to make sure that all paperwork is ready. Review closing costs in advance to avoid any last minute surprises. Attend your closing, sign the necessary paperwork and receive your keys. Congratulations!
Selling FSBO
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