There are times when some people will go the route of for sale by owner (FSBO), though it’s generally not advised as this situation presents more risks and challenges. Still, if you find yourself interested in a FSBO, remember to keep in mind a few of our best tips.
Pre-Approval for Mortgage
The first step is home buying today is getting pre-approved for a mortgage before you even start your home search. Why? Because you need to know how much home you can afford to purchase. It only leads to disappointment when buyers look at homes in a high price range than qualified for or can afford. Pre-approval will also save time closing on the home of your choice.
Understanding the FSBO Property
When you hire a real estate agent to represent you in a real estate transaction, the real estate agent has no emotions tied to the home. Because of this, he or she will be upfront with you about what it will take to purchase the home. When buying from the owner directly, you have to remember that the owner is emotionally tied to the home. While hopefully not trying to be dishonest about the property; they may let their emotions overrule the reality of the situation. The most common affect of this is overpricing their home. This is particularly true in Nashville’s current real estate market, where inventory is limited and homes are selling quickly. Without the guidance of a real estate agent, FSBO homes may tend to price higher than they could even appraise for in reality.
Hire a Professional Home Inspector
A home inspection is essential in buying a home, as any real estate agent will tell you. In fact, the inspection often allows the agent further negotiates on price if the report reveals necessary repairs. If you are purchasing a FSBO, be sure to hire a professional home inspector to make sure you are protected. This may also give you the ammunition you need to negotiate on the price.
Be Aware of the Risks
There is always a risk involved with a FSBO property. If the property owner is demanding a deposit, be sure the money is put into an escrow account. Your REALTOR can assist you with this. Also, be aware of the extra fees involved in the sale, including the document preparation fees, title search fees, and taxes.
If you have fallen in love with an FSBO property, be sure to do your research. Not having a real estate agent to guide you through the process of buying a home can be risky. After all, REALTORS have the knowledge and experience to make sure you are protected when purchasing a home.
If you’re in the market for a great Nashville home, we’re here to help. Give us a call or drop us a line today! DeSelms Real Estate 615.550.5565