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Buying Houses For Sale By Owner
Houses for sale by owner, also known as "FSBOs," are a unique case in real estate investment. Buying from an uninformed seller who thought he knew enough to handle everything by himself can be frustrating. It can also be very profitable if you are...
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FSBO Real Estate
Buying FSBO real estate, or houses for sale by owner, has its
own particular problems and opportunities. Dealing with an
uninformed seller who thought he knew enough to handle
everything by himself can be frustrating, but it can also be
very profitable if you are prepared. First you need to
understand the FSBO seller.
People try to sell a house on their own for one primary reason:
To save the sales commission. Unfortunately for them, they
usually underestimate the cost and complexity of going it alone.
They'll often get frustrated and tired of the process, and be
ready to drop the price and be done with it. If you help them
solve their problems, your reward can be a good price on a good
investment. Just keep the following in mind:
1. A seller isn't an agent. You have to be more careful in what
you say and ask. Avoid negative comments about the house. Like
it or not, the truth is that it's difficult to get a good deal
if the seller doesn't like you.
2. Sellers think they're being smart. If you encourage that
belief, they'll be more open to your offer. If they have a good
idea, tell them so. It's not unethical to make people feel good
about themselves when negotiating.
3. FSBO real estate has often been on the market a long time.
Seller's are usually tired of the process, and want it to be
done. This means you'll get a better price if you are willing to
close quickly and easily.
4.
Seller's usually don't have a plan. They don't know where to
close, where to buy a title policy, where to keep a good faith
deposit, etc. Have simple solutions ready for all these
problems. If you walk the seller through the process while
letting him feel in control, you'll both be happier.
5. Skip over problems and return later. After a seller has
invested more time with you in a negotiation, he'll be more
inclined to give you what you want.
6. Sellers have often spent more than anticipated. Classified
advertising and other costs have already eaten into their
imagined extra FSBO profit. You may want to be generous in
negotiating the many closing costs - as long as you get your
price and/or terms.
Real estate professionals will tell you that most houses "for
sale by owner" net the seller less than those sold by an agent.
By the time a seller realizes this, it's often too late to
recover his money and time spent. At this point, he usually just
wants to get the thing sold as easily and quickly as possible.
If you help sellers with that, you can get a good deal on FSBO
real estate.
About the author:
Steve Gillman has invested in real estate for years. To learn
more, get a free real estate investing course, and see a photo
of a beautiful house he and his wife bought for $17,500, visit
http://www.HousesU
nderFiftyThousand.com
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