Some of our South Florida readers may have followed a previous multi-part series here that focused on the important steps that sellers should follow if they are entering into a for sale by owner situation with their home. Now it is time to examine the steps that a prospective buyer will want to pay attention to in this type of situation, starting with Part I of this two-part series.
First, it is important to understand just how common FSBO transactions are throughout the country. Some reports put the number at as much as 20 percent of residential real estate transactions, which is likely to be very close to the correct figure. But, from there buyers will need to see if there are any potential FSBO properties in the place they want to live and in a price range they can afford.
Next, buyers will need to focus their search for a FSBO home. As many of our readers likely remember from the seller-focused series regarding what to do to market a FSBO home, buyers will probably be able to find many FSBO properties on the Internet. There are some websites that are specifically dedicated to marketing FSBO properties, but some of the more popular sites, like Zillow, will also have FSBO properties listed.
From there, for potential buyers in almost every situation, not just FSBO situations, it can be hugely beneficial to get pre-approved for a mortgage. But, it can be particularly useful for a prospective buyer who is engaged in negotiations with a FSBO seller. Why is that? Well, a pre-approval shows the seller that the buyer can in fact afford the price that is being negotiated, and can close the deal in relatively short order. In Part II, we will take a look at the final steps for a buyer in a FSBO real estate transaction.
Source: forsalebyowner.com, “How to Buy a Home Directly from the Owner,” Accessed Sept. 7, 2015