A home that is listed under the title of being FSBO is for sale by the original owner of the home
. There are many of these listed in the markets across the country. Sometimes people may think that there is no way to purchase a home without needing to have a real estate agent but it is very possible and in a few select circumstances it is often better for people to buy homes without involving third parties. Real estate agents charge commissions which can end up being thousands of dollars in some circumstances.
Know how much you can afford. You dont want to go searching for a home if youre unsure of how much you will be able to afford on a monthly basis. It wouldnt really be a good situation if you found your dream home and fell in love only to determine that it isnt going to work out for you. You may want to utilize the tools online such as mortgage calculators which allow you to input how much money you make and extra debts to give you an estimate which gives you bigger insight to your personal financial situation.
Get pre-approval for the home through a reputable mortgage lender such as a bank. They will analyze how your credit status is along with how much of a down payment you have available and base their approval on these and a few other factors as well. Pre-approval gives any home sellers the extra push to know that as a buyer you are serious and actually will be able to buy the home if they choose you.
Obtain an accurate report of the home and its value. You will want to get the propertys value and compare it to other homes in the area that are currently being sold. The comparison can usually be done to include up to 20 other homes that are in the surrounding area. Be careful when looking at these numbers though because they dont always encompass the most recent updates to the home.
Then you can make an offer on the home. Look at the home itself, the report that you have, and then if you happened to have hired an attorney to assist you with your process, place the actual offer in with the owner of the home for their consideration in the matter.
An inspection is absolutely critical of any home that you are considering for purchase. There are problems that may not be disclosed or the owner may not have knowledge of. An inspector is trained to look at every little detail from the foundation to the roof. They range in cost from about $300-$600 depending on who you hire and you can estimate the time will be about 2 hours from start to finish. Once you have the report you may want to back out of the home offer or re-negotiate the price to a lower one due to necessary repairs that need to be made.