Understanding the For Sale By Owner (BSBO) Process
Saving money - that's the number one concern any individual living in
today's economy thinks about. This goes out to buying residential real
estate properties as well. Every home buyer, both first-time and
previous home owners wants to obtain a house that fits within their
budget, one that does not cause too much strain on their finances. There
are a lot of considerations that needs to be measured, thus the idea of
buying for sale by owner homes has become very appealing these days.
But, how does FSBO home process really work?
What is it?
A for sale by owner home, more popularly known as an
FSBO property is a transaction of selling real estate that takes place
without the help of representative. Meaning, there is no professional
such as a real estate agent or broker involved. All the details and
proceedings are solely done by the home owner. The home owner deciding
to make his or her home an FSBO either gets assistance from an online
marketing company or do all the marketing on his own. Home owners
deciding to do FSBO homes represents themselves disregarding the need to
pay commission from hiring expert assistance.
Typically, both the buyer and seller get more involved
or hands on with the home buying process and must therefore have a clear
understanding of it as well as a good rapport to make the deal a
What is involved?
The main idea here is that you have just put yourself into the position
of a salesperson. Yes, you hired yourself and so as the sole
representative of your home, you do all the work entailed in the
process. Getting yourself involved from the first to the last step
allows you to learn how home selling works. It helps you become a pro
and be ready to conquer everything that comes with FSBO homes.
You need to get all essentials ready, namely - legal requirements,
valuation, for sale boards, a professional photographer (optional since
you may choose to do it on your own) and posting your home to all major
real estate websites. Also, writing up a good and short description of
your property with clear and quality pictures of your home to go along
with it to be inputted on the site is also a must.
Since you are selling it without hiring a real estate agent, home
staging it is a must. By adding beauty and curb appeal both in your
home's exterior and interior, you boost your home's period of sale and
even add more value to your home allowing you to increase its selling
Home inspection is also a must when it comes to for sale by owner homes.
It is up to the seller to choose between holding an open house per
private appointments or open to the public. If you feel comfortable
letting people in your house or if you want more potential buyers, then
holding an open house open to the public will do. But, if you prefer
close and limited house inspections to safeguard your belongings and
your home, then letting home seekers make private appoints before
visiting your house is best.
Do you need to be open for negotiations?
Most home buyers tend to negotiate for a much lower price especially
when they know that it is an FSBO property. The main rule here is to be
firm with your decision. If you know you have priced your home
reasonably then be strong in informing potential buyers that your home's
price is fixed. Even better, let them know that other buyers offered a
much higher price than you asked for.
What happens during the closing process?
The last step in for sale by owner homes is completing all legal
concerns and settlements. Once you and your buyer have signed the
contract and closed the deal, it is now time to complete all legalities
and settlements involved wherein you need to hire a legal agent to
arrange all the necessary details involved. In settling, all legal
documents and payment are handed over to both parties on the agreed
settlement date usually lasting for 3 months. After which, you get a 10%
deposit at the selling of your home.
The process of FSBO homes is easy to do as long as you know what
steps to take and how to effectively market your property.