So you have been house hunting for a while and have come across your perfect home. It has all of the features you have always wanted and has tons of space and a beautiful yard. There’s just one problem – it’s being sold directly by the owner. For a lot of prospective buyers, this can be a turn-off simply because they feel uncomfortable not going through a certified agent. However, there are a lot of advantages for buyers who make an offer on a FSBO home, the primary one being that there is more room for negotiation if you deal directly with the seller.
If you are going to make an offer on a FSBO home, there are a few important things to consider.
The biggest difference between a Realtor-assisted sale and one handled directly by the owner is that as the buyer, you are responsible for all of your own paperwork. The most important document in this respect is the real estate purchase contract, which is a standard document that you can find at any office supply store, or even online. It is, of course, the homeowner’s responsibility to prepare the document, but it is always a good idea to take a look at it yourself and understand all of the terms. Apart from the sale price, the document will include any sale contingencies as well as other stipulations like the home inspection and earnest fee.
Speaking of home inspections, this is probably the most important part of any home purchase. Ensure that the seller stipulates a professional home inspection as a contingency of sale in the purchase document. If anything is seriously wrong with the house, it will be discovered during the inspection and will give you the right to back out and recoup your earnest money.
Typically in the range of $1,000 or so, earnest money is the deposit the buyer puts down to show that he or she is serious. Usually, the real estate agent safeguards the earnest money, so you and the seller will have to come to some kind of agreement about how to hold the sum before you write out a check for the amount.
Very few real estate sales ever go through without a certain amount of haggling over the price. When you make an offer on a FSBO home, the chances are fair that the owner will come back at you with some sort of counteroffer. If this is the case, you can choose either to accept it or to come back with another offer. Unless you are comfortable with the terms, though, it is a good idea to consult a real estate agent or attorney at this stage. They can help you ensure that the terms of sale you are being offered are fair. Once you sign that contract, you are tied to it for a very, very long time, so it is important to make sure that it is airtight.
Speak With A Real Estate Professional
If you are planning to make an offer on a FSBO home and need the advice of a real estate professional, let TalkLocal help you. We can find you a real estate agent in your area within minutes, at no charge. Visit our website today and get started on your FSBO purchase!
