In Real Estate a phase you learn quickly is Caveat emptor this is Latin
for buyer beware. I am going to give you some very important tips that will
help you when shopping for a home. Its nice to be able to take advantage of some of the great
opportunities in the FSBO market or For Sale by Owner, in some cases these homes
are listed below market value. FSBO sellers
typically are selling their home to save money on the Realtor fee which is
typically 5% - 6% of the sell price of the home. In theory the FSBO home is
priced lower to attract more buyers, but as always be careful and make sure you
check values before you make an offer. Here’s some must do tips for any
FSBO buyer to follow.
1. GET Qualified; This is step one regardless of
who you buy your home from. YOU need to know the amount you can qualify
to purchase. This will also let the FSBO seller know you are a serious buyer
because you will be able to provide them with a letter stating you are
qualified from your lender.
2.
Once you find a home get a CMA or Comparative
Market Analysis, some Realtors even though they are not involved in the deal
will assist you. If you cannot find a Realtor there are several online sources
you can use to help you find comparative homes in the same neighborhood.
3.
Making an offer and contracts, you’ll want to have
an attorney review your purchase contract, make sure you have everything you
want in the contract down to the appliances and back yard BBQ if you want it,
remember everything is negotiable including your close date. Give yourself time
to get financing, inspections and always give yourself a way OUT of the
contract should you change your mind due to anyone of the circumstances we just
mentioned.
4.
As the buyer you get to choose the title/escrow
company I encourage you to shop around as fees vary a lot. When you receive the
Preliminary Report on the property make sure you review it carefully for any
title issues. If you don’t understand
something ask your escrow officer to explain it, they are there to help you.
5.
Get permission from the seller to get a C.L.U.E.
Report from LexisNexis.com
this is a 7 year history of insurance claims on the property.
6.
Request the seller fill out a property
disclosure form. This form should list any defects know to the seller on and up
to a given date.
7.
Get a HOME inspection by someone of your
choosing. I recommend you be present during this home inspection to go over it
with the inspector. Most people don’t take advantage of this and it’s a missed
opportunity in my opinion.
8.
Get a Termite Inspection. Even if the seller has
one done already and has all the work done. Get another one by a company of
your own choosing.
9.
Having your own Realtor even with a FSBO transaction…
yes this is possible. Many FSBO sellers are willing to pay a negotiated
percentage of the selling price to a real estate agent with a buyer. This means
you, the buyer would be represented.
10.
Remember buying property alone is not for wimps
so be diligent and do your homework.
Ask lots of questions and don’t take
anything for granted, assume nothing or think anyone else is looking out for
you. YOU’RE are on your own!
IF you don’t want to go it alone, get a
Realtor… they will watch your back!
Thank you for stopping by my blog, I welcome your comments and ideas, please follow my blog if you are not already.
Roxy Redenbaugh
ACMC, Loan Consultant
Branch Manager
NMLS#269926
808-637-0011
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