Thinking about buying a FSBO home? Here are some great tips to help you get started.
1. Make a checklist
Think about the kind of home you’re looking for. Are you looking for a turn-key, newly built home? Or an existing home that needs a little TLC? Small yard, big yard, pool or no pool, hardwood floors, and adequate parking. These are just a few things you need to consider before beginning your research. Know what you want. List your must-haves and features you can do without. Keep your expectations realistic.
2. Research online
Now that you have an idea of the home you’d like to buy, you’ll want to research the ideal neighborhoods you’d like to live in. Keep in mind the price, schools, crime, and commute time. Search Fizber.com for FSBO homes available in the area you’re looking to buy.
3. Evaluate your finances
Unless you plan to make an all-cash purchase, you’ll likely need financing. Pull your credit reports to make sure you have a clean history. You can easily pull a free credit report from all three reporting bureaus at AnnualCreditReport.com. Dispute any incorrect information that negatively impacts your credit score. Remember, the higher the credit score, the lower your monthly payments. Also, pay down credit card debt and do not make any huge purchases 3-6 months before applying for financing.
For more tips to improve your overall credit score, read Ten Ways to Improve Your Credit Score.
4. Start Saving
It’s a good idea to start saving ahead of time. When buying a home, you’ll need funds to cover an earnest payment, down payment, and closing costs.
How much do you need to save for a down payment? Read more on How Much Down Payment is Required to Purchase a Home.
5. Know what you can afford
Calculate and budget ALL expenses you’ll incur on top of the mortgage payment, taxes, and insurance. These expenses include, but are not limited to, utilities, homeowners association fees, maintenance, and additional expenditures such as groceries, commuting costs, and recreation. Crunch the numbers to see if you the house is in your budget.
6. Get pre-qualified
Pre-qualification from a lender will save you wasted time and energy looking at houses beyond your financial reach. Being pre-qualified means the lender performed an initial check of your financial standing and has given you a mortgage amount for which you are qualified. In addition, pre-qualification provides a better chance to put in a serious offer when you find the house you want — the FSBO seller will know that you’re just a step away from securing a mortgage. Fizber has partnered with Greenlight Loans to make this process fast and easy. Get pre-qualified today!
7. Know beforehand how much to bid
Once you find the home you want to purchase, do some research before submitting a bid. Consider similar home sales in the past three months. You’ll want to adjust your bid, up or down, depending on the sale trends and condition of the home. Make an opening offer that is reasonable and fair.
For more For Sale by Owner resources, visit Fizber.com.