FSBO real estate, or for sale by owner is a great way to buy a home for many people. But just like with anything else, it has some problems itself that you need to be aware of. You can run into sellers who think they know how they should handle everything, and really don t. This can be a problem. But if you yourself are well prepared, then this can be a good opportunity for you. You need to know the in s and out s of FSBO selling.
The main reason sellers choose to sell their homes themselves is to avoid the agent commissions. This causes them many times to underestimate the actual costs involved by doing it on their own. Lots of FSBO sellers become frustrated with the process, and come way down on their price in order to be done with the whole thing. If you re armed with the knowledge of helping them with their problems, then you may find a great reward in the form of a great price for investing in their home. Here are some things to keep in mind:
(1). The seller is not an agent. So when you ask questions, you ll need to be a bit more tactful. Don t put them off with negativity. If the seller doesn t like you, it will be harder to get a good deal.
(2). The seller already thinks he/she is being smart going it alone. Fan that flame. If they have some good ideas about the house, applaud them. Good relations in negotiation is just good practice, and beneficial to those who are good at it.
(3). When you see most FSBO homes, they ve generally been on the market for quite a while. This lengthy time frame is what wears the seller down, and causes them to lower the price and be done with it.
(4). Most FSBO sellers don t have any kind of a plan. They re not sure where to close or purchase the title, or where they should keep the good faith deposit. Be ready to answer all questions like this, and you ll find yourself in control of the transaction.
(5). Sometimes, if a problem is beginning to feel rough, then it s a good idea to let it go and come back to it later. Stay in the areas of good feedback and work at the problems from around the edges.
(6). Sellers will many times find that they ve spent more than they thought they would. Newspaper ads and listings have eaten into their profit. This opens up an area for you to be able to show your generous side in negotiating the closing costs, while still getting your price.
A lot of real estate pros say, that most homes that are sold FSBO, will net the seller less in the long run than if they went through an agent. But it s usually too late for the seller by the time they realize it. They ve already gone too far down the road with expenses to turn back, so they come down on their price. This is where you can step in and make yourself a really good real estate deal and investment.
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