by Bruce Wiley
When you buy FSBO real estate or houses for sale by owner, then it 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.
When people try to sell their house on their own, there is one primary reason for it. This is to save the sales commission. Usually, they underestimate the cost and complexity of going it alone which is unfortunate for them. They?ll often get frustrated and tired of the process, and be ready to drop the price and be done with it. Helping them solve their problems would mean that your reward can be a good price on a good investment. All you need to do is keep the following in mind.
Keep in mind that a seller is not an agent. Being more careful in what you say and ask is therefore very important. Negative comments about the house should be avoided. It doesn?t matter if you like it or not because it is difficult to get a good deal if the seller doesn?t like you.
It?s likely that the seller may think you are being smart. They will be more open to your offer if you encourage that belief. If they have a good idea, tell them so. It?s not unethical to make people feel good about themselves when negotiating.
Most of the time, FSBO real estate has been on the market a long time. Usually, sellers are tired of the process and they would want it to be done. This would mean that you would get a better price if you are willing to close quickly and easily.
Sellers don?t have a plan most of the time. They are not familiar where to close, where to buy a title policy, where to keep a good faith deposit, etc. Having simple solutions ready for all of these problems is a must. If you walk the seller through the process while letting him feel in control, you?ll both be happier.
Skip over problems and return later. When the seller has invested more time with you in a negotiation, he will then be more inclined to give you what you want.
Often, sellers have spent more than anticipated. For classified advertising and other costs, they have already eaten into their imagined extra FSBO profit. As long as you are able to get your price and terms, then you may want to be generous in negotiating the many closing costs.
Most houses ?for sale by owner? net the seller less than those sold by an agent and this is what real estate professionals will tell you. It is often too late to recover his money and time spent by the time that the seller realizes this. At this point, he usually just wants to get the thing sold as easily and quickly as possible. You will be able to get a good deal on FSBO real estate as long as you help the sellers with that.
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Source: http://loansandcredit4all.info/home-equity-loans/what-is-fsbo-real-estate
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