A FSBO Seller Will Want to Sell Quickly
While all home sellers want to get rid of their properties as quickly as possible (and, obviously, as close to the offering price as possible), the pressure is even greater on a person pursuing the homes For Sale by Owner approach to finalize a fast sale. By understanding the fact that a typical FSBO homeowner really wants to get the property sold, this will often provide a potential buyer with more room to negotiate.
The For Sale by Owner Seller is Saving Money by Having No Agent
Another thing to keep in mind when it comes to a homeowner not represented by an Real Estate agent is the fact that they will be saving at least some money by not having to pay an agent. While the FSBO homeowner obviously will want to pocket at last some of that savings, a wise homeowner will also know that this savings (or a part of it, at least) can be used as something of a bargaining chip when it comes to moving a sale along.
A potential home buyer understands that there is probably some wiggle room in the mind of the homeowner and seller that can be strategically exploited. In that regard, avoid coming on too strong and taking the tactic of “Look, there are no agent fees… you can afford to take a lower price.” Rather, by being subtle in the approach, it will achieve at least some success as a result of the savings that the seller will enjoy. As a FSBO buyer, subtly take advantage of the fact that the seller has already been considering the fact that he or she is not paying an agent as a tool to lower the offering price.
Get Pre-Approved for Financing
A huge concern of homeowners who are following the For Sale by Owner approach is that they will sign a contract and yet the closing will not occur because the potential buyer is not able to get financing. This is often not a concern, of course, amongst homeowners who have a home sale pending with real estate agents representing them. However, as a rule, this concern seems to be even more pronounced by FSBO home sellers.
Therefore, seek to ease a seller’s concerns (and perhaps even get some sort of price concession) by making an offer on a property that is for sale by owner and then demonstrate that the pre-approval has already been given for home mortgage financing. This will certainly get the attention and encourage the buying a house process to be completed faster.
Before buying any house, be certain to follow through with all the recommended steps. Have the inspections, do the title search, etc. It is possible that the FSBO home seller did not want to follow recommendations of the real estate agency in order to sell it. This will help to avoid any surprises later.