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Over 93% of the real estate market are homes for sale by agents. Every now and then, you will run into a homeowner looking to sell a home themselves. Is it easier, harder or riskier?

Four Things to Keep in Mind When Choosing to Pursue a FSBO Property.

FSBO: For Sale By Owner

Most Sellers Will Work With An Agent.

Most sellers understand that agents are essential for the home buying and selling process. So if you happen to see a for sale by owner on Zillow or Trulia, it would be wise to pass him off to your agent to contact first. They might be offering a commission for any buyer's agents representing a buyer for their deal.

TIP: Many FSBO are testing the market and not sure if they are going to sell. They just want to see if someone will pay their price.

Let your agent run the comps on the property and figure out the true value before even seeing the property.

Don't Treat the Transaction Differently

Remember there is no agent to buffer emotion. You and your agent will be negotiating directly with the seller. Most people get attached to their homes and might not be realistic when it comes to its renovations and/or upgrades.

Low offers might offend the seller and cause the deal to die quicker. When it comes to negotiations, direct sellers are not experienced. This can be a good thing or a bad thing for buyers looking to purchase a FSBO.

Laws Still Apply

The seller still has a duty to disclose problems, inspect the home, and fix any necessary problems. The FSBO must cooperate or risk being sued – or the deal risks dying.

The biggest problem with a FSBO sale is the lack of knowledge regarding the real estate processes and procedures. Mix a lack of knowledge with stress and you could very well have a recipe for disaster.

Trust your gut and your agent's professional judgment. Especially if you and your representative feel the seller is neglecting his due diligence.

The Price May Be Off

Let's face it, most sellers are not professionals when it comes to pricing a property. They usually go off Zillowmates estimated price and wind up overpricing the property – and over a course of several months lower the price. Unfortunately, a lot of FSBO's are looking to test the market to see what they can get. Some haven't properly planned an exit strategy and can cause a LOT of stress the closer they get to closing.

Sometimes a FSBO will fail to sell solo and choose to list with the help of an agent and get the home on the market for a more realistic price. Sellers often want representation when it's time to get serious.

But if you love a home, and the price is off, move on to the next, whether listed by owner or agent.

Want to Know the Value of Your Home?

Contact us, for a FREE Home Valuation & Consultation with a Listing Specialist.

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FOLLOW THESE 5 STEPS TO GET YOU CLOSER TO THE CLOSING TABLE FOR YOUR STARTER HOME.

Queens’s prices are through the roof! ...but so is the rent. In this fast paced market how do you know when is the right time to buy? Here are 5 necessary steps you will need to take to go from your rental to your starter home:

1. GET YOUR CREDIT READY!

Credit scores are one of the most important factors when getting a mortgage. With good credit comes a good interest rate! Lenders look for long-term on time payments before lending you the hundreds of thousands you will need to purchase your Queens home.

The more lines of credit you have the better. So if you have one credit card it might be time to up the credit game a little. For more info on credit building CLICK HERE. Remember when getting new credit cards it will effect your credit score by 5-15 points. Over time it will grow into a beautiful money tree helping you get the funding you need for your future home.

FIGURE OUT, WHICH MORTGAGE IS THE RIGHT MORTGAGE FOR YOU.

Even if you don’t have 20% down you can still get a mortgage for a little as 3% down. If your mortgage is lower then 20% you will have to get what is called mortgage insurance, which is roughly .85% of the mortgage and is not tax deductable in any standard.

You can also lower your mortgage insurance and your rate by taking a short-term loan. Like a 5 year ARM where the interest fluctuates every 5 years. This might not be the best option if you are planning to live in the home long-term.

Does it sound like I’m speaking another language?
LET A PROFESSIONAL MAKE IT SIMPLE TO UNDERSTAND

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KNOW WHAT YOUR TAX DEDUCTIONS ARE!

When you buy a home your property tax and mortgage interest are tax deductable. So, when you file your taxes at the end of the year you'll owe less money to the IRS. Speak to a financial professional for more details.

COMPARE RENTING VS. BUYING.

Most people make the mistake of looking at the monthly and comparing it that way. To truly compare you have to compare it after your tax deductions and the whole nine yards. That will give you the true numbers you need for a proper and accurate comparison.

KNOW THE DIFFERENCE BETWEEN A CO-OP, CONDO, AND RESIDENTAL PROPERTY.

It is wise to speak to a local real estate professional to come up with a game plan. A good realtor will look at your budget and connect you to other professionals to help you come up with a budget and over all game plan.

THE BASICS:

Co-ops: Usually require 20% down payment and have many requirements regarding DTI. They have policies regarding subletting and pets. You usually must pass a board interview and an application process (NOT REAL PROPERTY).

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Condos: You can get an array of loans for this property but buildings don’t usually accept FHA loans. Some condos do require a board process (rare). A Condo does have common charges and taxes similar to a co-op but does not have as many rules and policies. (REAL PROPERTY)

So renter, there you have it! Those are the five steps you need to start moving toward ownership. It would be a wise choice to reach out to a real estate professional to help you brainstorm and come up with a game plan. Also, most buyer representation is FREE! So, you have nothing to lose and everything to gain!