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When you are buying a FSBO ask yourself "what is my motivation"? You have probably heard this 20 times, but are you trying for the proverbial good deal home run? This may not be the ballpark to play in.
You will be dealing with a homeowner who is most likely a first time FSBO seller and who may be unprepared and confused with the technical process of selling his or her home, in my case, a San Diego FSBO.
The homeowner's desire is to get the highest and best price for their home.
It has been my experience with any California FSBO that the value determined by the homeowner is usually unrealistically high based on subjective factors that have no market value to the new buyer.
You might interject with something such as "That is slightly out of my price range.
Can you share with me how you came to this value?" This valuation issue is a primary consideration for you.
Can you find and then negotiate a deal? Do you have a plan and check list? A goodly number of the homeowners will be unprepared and will be quite stubborn regarding a price reduction or allowing you to bring in a 3rd party such as your professional real estate representative.
You might disagree, but hear me out on this.
It is very important for you to determine if the homeowner has to sell or not.
Many people buying a FSBO get caught up in the homeowner's price fishing expedition game.
That is frustrating and a waste of your time.
Be aware, also, that the homeowner may not readily reveal problem issues with their home.
Ask for the age of the roof, as an example, and if a recent repair or replacement, ask for the invoice to determine proof or the extent of the fix.
California, as do many States, has water hardness issues in many areas.
That means that most homes 15 years of age or older may have plumbing problems.
Always use and pay for the overview of a home warranty inspector or an experienced Realtor to assist you in you buying decision.
If you are not a Realtor and are not represented by one, you must become very familiar with all the legal documentation and selling and buying processes.
Do not be mislead in thinking that there are no complexities of title, escrow, home warranty, disclosures, etc.
It may be a little of the blind leading the blind with a large amount of money at stake.
I am advocating that you negotiate with the homeowner to pay 3% for your professional Realtor representation.
If the homeowner won't agree, then walk.
It is just too risky.
If you just have to have the property be sure you have access the proper checklists and legal forms that are freely available to you to guide you in buying a FSBO.
Your next step? Take what you have learned, and add to it, and please review the FSBO buying tools and tips available in our resources section at our website.
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