Find and Compare Real Estate Agents

facebook Twitter RSS

Home > Home Selling Tips > Understanding The For Sale By Owner Process

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 success.

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 price.

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.



Buy House and Sell House Fast Back to Buy House and Sell House Fast

Home  ::  Home Buying  ::  Home Selling  ::  Home Mortgage  ::  Real Estate Investor  ::  Foreclosure  ::  Real Estate Service 

Bookmark Us  ::  Submit URL  ::  Resources  ::  Terms of Use  ::  Privacy Policy  ::  Site Map  ::  Contact Us 

Copyright © 2005 - 2018 All Rights Reserved.