Has anyone bought a house "for sale by owner?" What was your experience?

Question

We've been looking at houses for a while. We just relocated to an area that has mostly older homes and we've had a hard time finding one we like. I fell in love with one and it's being sold by the owner. How does this work?

Answer 1

As the buyer it may be a good idea to consult a local Realtor. They can work as a buyer's agent and work for YOU. They can help you navigate the entire process. You need to know if the sellers would be willing to pay a commission to the agent. Usually 3 % of the purchase price. If they are a "For Sale By Owner" they usually expect this anyway.

As a buyer from a FSBO you need to cover yourself completely. In my mind a seller that doesn't sell with a licensed Realtor falls under one or many of the following:
1. House is in poor condition and a Realtor is required by law to disclose all negative conditions (sellers are required also but tend to hide things sometimes)
2. Sellers want more money then a Realtor tells them their house is worth so they try to do it on their own. (FSBO homes usually are overpriced.0
3. Sellers had a bad experience with an agent at one time and have a bitter attitude towards them.

You are making the largest investment you'll ever make (probably) so cover yourself at all times! Consult a Realtor and be wise.

Answer 2

For sale by owner, means the seller, does not want to pay a selling commission to an agent, He wants the money for himself, and is willing to put up with phone calls and dealing with people in order to keep it.

So, don't expect a bargain. Next, he may have an inflated idea of what the house is worth, so you have to determine if it is a good deal, or just not care because it is the house you want.

There may not be anything wrong with the house anyway, and you will want a lawyer before you make an offer just for protection. So

Have a tour of the house
See if you really want it
Get the price and answers to any questions you have about the house and it's conditions.
If you want the house, Talk to YOUR lawyer about making an offer, and what conditions need to be included, like
Price, subject to financing?, Down payment? What should be included like appliances and window coverings, closing date
etc...the lawyer should know

Then make the written offer (check with your financial people about financing before the offer)

If the owner counter-offers, talk it over with your lawyer

ALWAYS MAKE A SALE CONDITIONAL TO PROPERTY & BUILDING INSPECTION. You don't want to buy a termite nest full of mold, with a leaky roof, and a broken foundation, on a fllood plain subject to flooding.

Also, Make sure the seller owns the house and is not just a renter (Lawyer job)

Good luck, whatever your decision.

Answer 3

Why don't you lease it with an option to purchase it? This will give you an opportunity to decide if this house is for you. If the owner will not do a "rent to own", then he can either offer you seller financing or you must go to a lender and get your own financing. Lending Tree might be helpful, I know people who got loans by going to their site and would do so again. Usually if a house is fsbo, you can get a better deal on the purchase price, i.e. below market value. This is the main reason people purchase fsbos.

Answer 4

If it particularly is a short sale with a economic corporation authorized fee, then that's what you will could pay. whether, you state that is owned by technique of the economic corporation, for this reason that is not a short sale. it could have been marketed as a short sale previous to the completetion of the foreclosures, yet now that that is economic corporation owned, it particularly is a REO. realtor.sailor

Answer 5

If the owner wants to sell privately, no problem.
purchase it threw your own agent as usual, this helps you cover your end of the legal/logistics involved.

On the negotiation end of things, it will have to be decided who pays your agents commission. buyer/seller

been there , done that , had no problems at all