Property owners frequently will try to sell their property on their own without the assistance or expense of a professional real estate broker. These properties are called FSBOs or For Sale by Owners. Certainly, there are opportunities for real estate investors to realize savings in pursuing this kind of purchase, but at the same time FSBOs usually require a bit more work on the part of the seller and the buyer. With no real estate broker to manage the sale and transfer of the property, certain technical aspects of the purchase must be handled by a buyer or seller whose knowledge of the transfer process may be lacking. As a purchaser, the steps you take must be handled carefully requiring that you line up other service providers along the way so that you can avoid expensive mistakes.
Here are the basic steps to follow:
While it is true that For Sale by Owner sales can be a source for good deals in real estate, it is also true that this kind of transaction leaves a lot of the work up to the buyer and seller to organize and expedite. The sale of property can be completed between you and the seller on your own if you take an organized approach and write the sales agreement in such a way as to give yourself the protections you will need. Follow these steps in getting from finding the deal to closing on it. Hire professionals such as appraisers, inspectors, lenders, and title agents who can protect your interest as you go from the offer to the closing.