How to Buy a Home for Sale by the Owner

Sellers who want to save the brokerage fee by selling their home themselves put the house on the market as FSBO - For Sale by Owner. When working with FSBO sellers, keep these steps in mind

Things You’ll Need:
Inspectors
Real Estate Attorneys
Pads Of Paper
Pens
Personal Organizers

Step 1:
Get comparable prices for other homes in the neighborhood from a local real estate company to ensure the home is not overpriced. (Firms usually do this at no charge.)

Step 2:
Question the owners about the asking price. How did they arrive at the price? Request to see copies of comparable sales they are using or a copy of the appraisal.

Step 3:
Ask the owners specific questions about the property: How long has the home been on the market? Are there any defects or conditions that the buyer should be aware of (sellers in many states are required to fill out a transfer disclosure statement that lists the condition of the property - ask to see one)? Why are the sellers selling and are any nuisances or negative conditions in the property?

Step 4:
Hire your own home inspector, one not recommended by the seller.

Step 5:
Make an offer that's based on comparable prices in the neighborhood, not on the listing price.

Step 6:
Have an attorney look over contracts and agreements before signing.