How to Buy a For Sale by Owner Home

Buying a home for sale by the owner (FSBO home purchase) can be more complicated than working with an agent. However, it can also save you money.

As with any home purchase, it’s best to start with a mortgage preapproval, which shows you how much you can spend and helps you stand out as an attractive buyer. Then, you’ll need to find a real estate professional or broker who is willing to work with a FSBO seller. Many traditional real estate agents will not work with FSBO sellers, but there are flat-fee or discount brokers who can help you.

FSBO Home Purchase: What to Expect When Buying Directly from the Owner

FSBO sellers may not have the same access to the multiple listing service, so your search could take longer than it would if you were looking at homes listed with a brokerage. Also, many FSBO sellers don’t have the expertise or resources that a professional agent can provide, so you’ll likely need to do more research on your own.

One of the biggest challenges that FSBO sellers face is pricing their property accurately. This requires a comprehensive evaluation of the comparable homes in your area. It’s also helpful to enlist the services of an appraiser for an independent, unbiased valuation.

Once you’ve found a FSBO property that you like, it’s time to make an offer. This is where you’ll need to discuss the price you’re willing to pay, any contingencies (such as a home inspection or sale of your current home), and how earnest money will be handled. You should also ask the seller to supply you with a comprehensive loss underwriting exchange, or CLUE, report, which will list any insurance claims made on the property in the past seven years.