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    For Sale By Owners (FSBO) - Home Buying & Selling Tips
    by Jon Gropper


    Traditionally, home buyers and sellers have hired the services of a real estate agent or a brokerage firm, a trend that continues to be popular. Yet the concept of FSBO (For Sale By Owner), where the sales transaction is directly between the home owner and a prospective buyer, is becoming increasingly popular.

    The growing popularity of FSBO can be attributed to the growth of the Internet and the opportunities that it offers both home owners as well as home sellers to find one another more easily.

    Of course, selling through a brokerage firm or a realtor makes sense if the idea is to make a quick deal. On the flip side, that comes with the price of a heavy commission. Obviously, one has to pay for the expertise of the realtor. Unfortunately, another downside is the susceptibility to malpractices during the process, particularly, behind-the-back negotiations.

    On the other hand, if immediacy of a sale or purchase of a home is not the most important criteria and the objective is to reduce costs and save money, then the best option is to go for FSBO.

    Tips for FSBO Sellers

    Selling a house yourself is not a joke by any means. However, there are some very basic factors that an owner can take care of, some of which are listed below.

    Pricing

    As a seller, it is important that you price your house correctly ie. the price should be neither too high nor to low. Research and survey the real estate prices in the market. A lot of the information is publicly available; and don't forget the time tested method of fishing for information by asking around. A strategy that home sellers often adopt is to set much higher prices initially and then lower it during negotiations. It might come off occasionally but more often than not, it is bound to put off a prospective home buyer who might think the property is overvalued.

    FSBO Services & MLS websites

    FSBO has become such a mainstream method for home owners that there is a full-fledged industry to support it. The website SellItYourselfUSA.com (http://www.sellityourselfUSA.com ) is a case in point. The objective of these FSBO services is to help these owners and buyers complete the process in a smooth fashion and cost-effectively. Make the most of the information provided by the FSBO websites and service providers.

    Marketing the home

    Undoubtedly, marketing continues to be one of the biggest challenges for a seller, but it has been made ever so simpler by the Internet. The sale-purchase scenario of property has undergone a drastic change. Advertising or listing on the niche FSBO and MLS websites gives enormous exposure to the property that an owner is trying to sell. In fact, the choice of how much exposure a person wants is really dependent on the seller with the various targeting options that are available these days.

    FSBO tips for buyers

    Some simple points that home buyers are well advised to consider when they plan to buy directly from the property owner:

    When to buy

    Typically, the best time to buy homes is during Fall and Winter when the best bargain property deals seem to be available. This is the time when FSBO sellers generally lower their prices to get potential buyers. Conversely, home prices tend to get higher during the warm weather seasons. As a home buyer it will be good to take these into consideration.

    Mortgage pre-approval

    In order to avoid problems later, it is important that you have a mortgage pre-approval before making an offer. This is because the seller can be entertaining multiple bids and in such a scenario, you might need to make an offer quickly. In addition, you should arrange the amount required for the down payment.

    Insurance-claims report

    While buying property, secure the seller's permission to buy the Comprehensive Loss Undertaking Exchange or C.L.U.E. as it is commonly known. The report has the insurance-claims information and related data and is available online from a company called Choice Trust.

    Jonathan Gropper is President of Vortech Web & Business Solutions, a company that designed and markets SellitYourselfUsa.com (http://www.sellityourselfusa.com), a niche website for FSBO sellers to provide maximum exposure to the property they are trying to sell. He is also the COO of OnlyOpenHouses.com (http://www.onlyopenhouses.com ), a comprehensive source for listing and finding open houses.

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