How to Buy FSBO Properties
How to Buy FSBO Properties – A Short Guide
Investing in For Sale by Owner (FSBO) properties can be tricky, and this is because speaking to homeowners is tricky.
Unlike realtors who understand how the real estate market works, homeowners have a lot of biases and problems, and you will need to appeal to their concerns if you want them to take your offer. So if you’re ready to learn about FSBOs then here’s what you should know.
How Do You Find FSBO Sellers?
You can find FSBO sellers in various ways. For starters, you can drive around town and look for yard signs. If that doesn’t work, you can also try classified ads on the internet (Craigslist is a good choice).
You can even befriend local repair contractors and lawyers to find out which of their clients are planning to sell their properties.
Once you have a lead, give them a visit and tell them that you’re interested in purchasing their properties. This will prove to them that you are serious about buying their house, and if you play your cards right, they will take you up on your offer.
How Do You Get an FSBO to Sell You Their Property?
Most FSBO sellers operate under the assumption that they can do better than real estate agents in their area. Some don’t trust realtors, while others simply think that they have what it takes to get a good price for their home.
Furthermore, there are also FSBO sellers who have personal and financial reasons for selling off their homes without the help of a realtor.
Maybe they need to pay off a debt in less than a week or maybe they just need to leave town quickly. In any case, you can close a lot of great deals by finding the right FSBO seller and appealing to his or her particular concerns.
For example, an ICDAR member once found an FSBO seller who was attempting to sell a damaged house. Apparently, his real estate agent insisted that he repair the property before attempting to sell it.
He refused, saying that he lacked the funds to carry out any repairs, which is why he was attempting to sell the property on his own. So we gave the guy a good deal and everyone went away happy.
Another similar event took place around five years ago. This time, we found an FSBO seller who had problems with her paperwork. The local real estate brokers wouldn’t help her until she got this issue sorted out, so she decided to sell her property on her own.
When she told us about her problem, we immediately went about helping her process her paperwork (which the local realtors refused to do) on the condition that she sell her property to us for a specific amount. She agreed, and the transaction was concluded satisfactorily.
Each FSBO seller you encounter will have unique concerns, and you will need to cater to those concerns if you want them to accept your offer. The key here is flexibility. If you’re going to buy properties from FSBO sellers then you will need to adapt to each situation.
Tips for Buying High-Quality FSBO Properties
The following tips and information will help you find the best FSBO properties in your area.
- Befriend local contractors, lawyers, and even realtors, and ask them if they know any FSBO sellers in town who may be willing to sell their properties to you.
- Look for sellers who need help selling their properties but don’t want to work with real estate agents. They are usually willing to sell their houses if given good offers.
- Travel around your town and look ‘for sale’ yard signs. They’re usually put up by FSBO sellers.
- Look for decrepit or damaged houses. These kinds of properties are usually FSBO because realtors refuse to sell them.
- Offer to release funds ahead of schedule. Some FSBO sellers need money fast, so they are willing to accept certain offers if it means getting the cash ahead of time.
- Visit poor and declining neighborhoods. You may find a good deal there if you know where to look.
- Look at the neighborhoods that realtors and real estate brokers ignore. There you will find all kinds of FSBO sellers.
Once you have purchased an FSBO property, the only thing left for you to do is fix it up a little and flip it once local house prices start rising again.