Buying A For Sale By Owner Property

One of the main advantages of buying a house direct from the owner is that you may be able to save a lot of money. The property owner will not have any fees or commissions to pay to a third party and will often be willing to reduce the asking price. However, in some circumstances the seller may be emotionally attached to the property feeling that the time and money he has invested should guarantee a higher than average selling price. What you need to do, as in any negotiation, is to ensure that you do your research of the local area and have a realistic price in mind to enable you to settle the transaction.

Steps to Buying FSBO

1. The first thing to do is to contact the owner of the property and arrange a time to go and view the house. It is usually a good idea to schedule a second appointment later, as you will have typically missed a few details or have other questions. This is also a good time to have a professional property inspection done.

2. Begin the negotiation process. Using your property inspection deduct any cost of repairs from the asking price. You can also deduct any necessary upgrades, like air con; the seller may decline to pay them, but it is worth a try.

3. Make the offer and put it in writing. Sign a residential purchase agreement and ensure to include any negotiations and or inclusions in the agreement. You will also have to allow enough time to conduct a house appraisal and have the title researched.

4. If you are borrowing money and have not already approached your lender now is the time to do so. Your bank will typically take care of the appraisal and title examination.

5. A settlement agent will then be needed to finalise the paperwork, titles and the loan.