Some potential buyers will be working with a real estate agent, but many will not be. If they are unsure how to proceed 
they will probably contact a realtor. I’d LOVE to save that 3% commission when I “found” the buyer myself, so I help the buyer understand what to do next.
Today I sent out emails to everyone who attended my open house telling them how to proceed with buying my FSBO if they are unsure. Here is the body of that email:
| You may be wondering, “Do I need a real estate agent to buy a “for sale by owner” home?”
Not only are agents unnecessary to buy a home, involving one during a FSBO transaction could actually hinder the buying process, as the agent would want the seller and/or the buyer to commit to paying an expensive commission fee even though they did not bring the buyer and seller together. I have personally purchased and sold many homes “for sale by owner” and here is the process to buy a “for sale by owner” home: Get Pre-Approved For A Loan: You will want to get pre-approved so that you are ready to make an offer on a house. Getting a pre-approval letter is a quick process that will tell sellers that you are a serious buyer who can afford their home. If you are looking for a recommendation, I have worked with a local broker, John Finnessey, for several years. He has been in the business for 20 years, really knows his stuff, has integrity and and is an all around good-guy. He will guide you through the loan application process which is the hardest part of buying a home. His phone number is (443) 889-2828.
Make An Offer: Unlike homes being sold by a real estate agent, there’s no middleman to interfere with you from getting directly in touch with the seller. Contact the seller with any questions, or for a second showing.
If you have decided that a house is the one for you, and you are preapproved for a loan, you’re ready to present the seller with an offer. Offers on homes can be made verbally (in person or on the phone) or in writing (fax or email works just fine). Tell the seller how much you want to offer for the house. The seller will either accept or reject your offer or make a counter offer. Other terms to be agreed on are amount of deposited required, amount of down payment, closing costs, contingencies, date of possession, and other property to be included (such as appliances). Negotiations are common, even expected. If you are dealing with an experienced FSBO seller, they should have a standard sales contract, and required disclaimers and disclosures. Some buyers purchase their own contract or get one from a real estate attorney. You are always free to have an attorney look over any contract before you sign it. The Escrow Process: The lender will require you provide financial information and will usually will require a home inspection, termite inspection, and appraisal. The mortgage broker can help arrange this at the proper time during the loan approval process. The lender often will recommend a title company that you can use for closing but the buyer is legally entitled to choose whatever title company they want. Close the Deal: When the loan has been finalized, you and the sellers will meet at the office of the title company. Documents will be signed and payment is made to the seller. The seller will sign over the deed of the home and give you the keys. You’re now the new homeowner! |
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