Even a "veteran" of the home buying process who has a basic understanding of the key components can be a little bit unnerved at the prospect of buying a home on their own.   That is completely understandable, and we strongly encourage buyers to educate themselves about the buying process as much as possible, and to review the Buyer's Guide that we have included on this website.   If you have any uncertainty, buyers should also consider having a licensed real estate attorney prepare an Offer to Purchase (which, when signed by the seller, becomes the actual contract on the home) to make sure their interests are protected and all bases have been covered.

QUESTION: Why Should I Buy a FSBO Property?

Perhaps the single most important reason is this -- FSBO sellers are likely saving tens of thousands of dollars on the sale of their home by not paying agent commissions.   In many cases, they will pass on these savings to a FSBO buyer.   Thus, as a FSBO buyer, you have the opportunity to find more affordable homes here than you would on the traditional MLS listings.   Those sellers have to pay as much as 7% of the final sale price to the buyer and seller agents.   Thus, they have to sell their houses for more, and have less room to negotiate.   FSBO sellers are not hampered by those agent commissions, so you are likely to find a much better value in the FSBO marketplace.

QUESTION: What is different about buying a FSBO property?

Actually, it's little different than buying from an owner represented by a real estate agent.
But here are some key differences and points to remember:

• This is a common process. Nearly one in five homes sold is a FSBO property, and more than 770,000 homes were sold this way in 2006. You are not alone!
• In many FSBO cases, you can still use an agent to represent you, if the seller has chosen to offer a commission -- normally 2-3% -- to a buyer's agent. Sellers will often do this as an incentive to increase the traffic flow to their home, and it still allows them to pocket the 3-4% commission normally paid to a seller's agent. The seller's home listing will let you know if they will pay a buyer's commission.
• When representing yourself, you will do all the negotiating with the seller directly. No middlemen. Thus, make sure you understand the market completely, what comparable properties are selling for, how "hot" or "cool" the market is, what you are entitled to know and ask for, etc. Also make sure to follow the key steps in our Buyer's Guide, such as hiring your own home inspector, reviewing the disclosure forms, adding contingencies to the Offer to Purchase, etc. We have given you the basics -- but we encourage you to learn more on your own!
• FSBO sellers are often willing to negotiate price. By foregoing agent commissions, FSBO sellers will save substantially, and this provides the seller a little more room to work with than a traditional seller represented by an agent. Get ready to bargain!
• FSBO sellers must abide by the same federal and State laws as sellers represented by agents. This includes providing the buyer with required disclosure forms about the home and its condition.