FSBO stands for “for sale by owner” and it is a beneficial option for many people when it comes to the purchase of a home. Since FSBO listings are not presented through an official real estate agent they are usually ignored by the average buyer. Sellers are not created the same and there are sometimes awful deals when it comes to this type of marketing, but the same could be said for going through a traditional realty company.
It’s seems to be the general opinion that for sale by owner listings are a trap for overeager and undereducated home buyers. The truth is that many times buyers are able to work out a better deal because there is no real estate agent involved. One major reason that owners decide to leave agents out of their dealings is the fact that these companies charge large fees. If an owner sells on their own they are more likely to reduce the price significantly from its suggested market value because of what they are saving by not hiring an agent for assistance.
When you buy a house that is for sale by owner you are also way more likely to get someone who wants to make a deal. For those who suffer from less than perfect credit, shopping this market can increase your chances of getting a home, since many owners do their own financing. Buying a home from its owner gives you a better opportunity to haggle them over the price and method of payment. Some home owners can be incredibly easy to reason with and may even accept their payment in installments; eliminating the need for a costly loan.
Another reason that some consumers are wary of purchasing a home directly from the source is the idea that homeowners may lie about necessary repairs or other issues. Regardless of who does the selling, by law anything that is wrong with the home must be extensively detailed to potential buyers from the very beginning. This buyer protection law stretches to include complete disclosure of anything from a death in the home to a leaky pipe under the house.
Considering direct purchase from a homeowner is a good idea for many different people, for many different reasons. For sale by owner plans often save money in a variety of different ways for both owners and consumers. You get the opportunity to deal with the owner one on one and potentially sweeten the deal even further with some skilled negotiating. Lastly, someone who has actually lived in the house can give a much greater account of any past or existing issues than a realtor. These are all major things to consider when getting ready to purchase a home.