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Thursday, 7 November 2013

Debunking Myths About For Sale By Owner Homes

By Matt Baumberger


There are a lot of opinions going around about buying a for sale by owner property. They hide things they should disclose to buyers, they do not bend on price, most are not serious about selling, etc. This is a frequent myth you will hear when speaking to a real estate agent. The fact of this is you can purchase a nice house for less than you could buy one that is listed by a real estate agent. You can save a lot of money with just a little bit of hard work.

Homeowners selling their property themselves most likely want to sell it fast. Reasons behind this could be financial hardship to the house being listed for months with no bites. In order to sell quickly, the owner may be willing to part with the property for less than the asking price. This is good news for a potential buyer.

A Realtor is not involved. A home for sale by owner typically has an owner that is trying to avoid a real estate agent's commission. Also, a real estate agent may make the buying or selling of a property seem rushed and impersonal because some of them may have many clients.

A real estate agent may not know the kind of area or specific quality of life a potential home buyer is looking for. Buying a property that is for sale by owner leaves the real estate agent out of the picture and puts you one on one with the homeowner. They will no the important details like the best schools, local babysitters, good parks and recreation areas, and other possible factors.

This is how you buy a property that is for sale by owner. Hypothetically, let's say you have discovered a home you might want to buy. Check out these things you should do and be familiar with to make sure the buying process goes as painless and smooth as possible.

With the seller's permission, buy a C.L.U.E. report. A Comprehensive Loss Underwriting Exchange report, aka C.L.U.E. report, is just like a credit report but it has insurance claim data instead of credit information. Thirteen bucks will buy you one on line. The most important data on this report is water damage. You always want to know if mildew or mold are present in a home you may purchase.

Find a CMA or Competitive Market Analysis for the area where the property is situated. This data will give the the selling prices of houses in the neighborhood and surrounding areas. It only contains properties that were listed on the MLS, house that were sold by a Realtor. Zillow.com has some property sale information. Even if they're not included in the process, you still may be able to have a real estate agent find a CMA for you.

Hire a home inspector to look over the electrical and plumbing, the general quality of the home, and any other important information. An older home may be hiding major issues that could cost you money. An inspector will be able to identify these problems. A for sale by owner homeowner doesn't always know of every potential problem in their property.

Without a Realtor present, you are responsible for all the real estate agent tasks. Writing the purchase contract, finding a title company for the purpose of holding the earnest money deposit, buying title insurance and anything else a Realtor would normally handle. You should always ask a lawyer if you have any questions at any point.

Real estate agents will try to discourage you from buying a F.S.B.O. home with myths and opinions. Pursuing a home that is for sale by owner will consist of more leg work on your part but, can save you money in the end. Saving money is important to everyone, especially when purchasing a home.




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