Home-Buying Process:
Locating a House
Buying Direct From Owner
How to Locate Available Houses
A homebuyer has the option to buy a house directly from the owner. A house for sale by the owner is usually called a FSBO (For Sale By Owner). Buyers are not required to use the services of a real estate brokerage firm when purchasing a FSBO house. If you are looking at houses with a real estate professional and notice a FSBO house you can make arrangements to look at the property on your own.
Some FSBO houses may be overpriced. The owner of the house may view the property as more valuable than it is. Some techniques you can use to determine the fair value of the house are:
- Looking online or calling the local assessors office for the tax value of the property
- Finding the listing prices of other houses for sale in the neighborhood
- Looking online for real estate listings of houses with the same specifications and comparing prices
Benefits and Drawbacks of Buying FSBO Homes
When working with a real estate professional, he or she can help determine the fair value of a home and evaluate the condition of the property. A professional’s expertise can be helpful, especially if you have limited experience in the real estate market. The seller, however, may prefer to work with a buyer who is not represented by a real estate professional to avoid sales commissions. If you decide to purchase a FSBO home, you may use a professional for the appraisals, inspections, title reports and other legal requirements of the sale. You could ask the seller to help pay for these costs or reduce your offer and pay the professional a flat fee.
References:
American Homeowner Education & Counseling Institute. (2000). Core curriculum: National standards for homeowner educators and housing counselors. Author.
Fannie Mae Foundation. (1998). How to buy your own home. Washington DC: Author.
McCarty, J. (Ed.) (1998). Homebuyers' guide: Financing and evaluating prospective homes. Ithaca, NY: NRAES Cooperative Extension.
McQueen, K., Schneider, D., Thresher, A., Maggiano, L. (1998). Realizing the American dream. Washington DC: Neighborhood Reinvestment Corporation.
Tyson, E. & Brown, R. (2001). Homebuying for dummies. 2nd Edition. New York, NY: Wiley Publishing Inc.
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