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Murrieta Real Estate - For Sale By Owner (FSBO)

Dealing with a FSBO Transaction

A FSBO transaction is different in many ways from buying a Murrieta home with the help of a real estate agent. The biggest difference is that the buyer and seller do not have to factor in the 6 percent real estate agent sales commission when making a deal.

This can be an advantage for you, the buyer, because the seller can offer a more attractive price if he or she is not paying a sales commission. While the general rule is that seller pays the commission, in reality the buyer often ends up paying more for the Murrieta home in order to cover the cost.

Another way a FSBO deal differs is how the paperwork associated with the transaction is drafted and processed. There is no agent to write up the purchase agreement, handle disclosures or arrange escrow accounts. Fortunately, however, most FSBO sellers arrange for a fee-for-service consultant or attorney to take care of these matters.

A buyer often wants to arrange for his or her own consultants to help negotiate the final sale too. For example, most buyers find that paying a fee to an attorney, an appraiser and an inspector is cheaper than the sales commission and provides them with the information they need to make an informed decision about a Murrieta real estate property.

In the past, buyers were hampered in their attempts to buy Murrieta homes directly from sellers by the limited availability of information. There was a time when buyers could not get good information about available Murrieta real estate in the area, asking prices and comparative differences in neighborhoods without the help of an agent. This is no longer the case. The Internet is a vast source of information for both sellers advertising their Murrieta property and buyers looking for the right home. Savvy buyers are using these information resources as well as the professional services of attorneys, appraisers and inspectors to guide them through this process.

This is not to say that all Murrieta real estate buyers are eager to work directly with a seller. Some Murrieta home buyers are unsure about the process. They may lack confidence in their ability to negotiate an offer or manage the necessary paperwork that goes with every sale. These buyers prefer to use a Murrieta real estate agent to guide them through the process so that all the financial, legal and regulatory issues have been addressed.

Working with a FSBO Seller

If you decide that dealing with a FSBO seller directly is best for you, there are some steps you can take to ensure that the process moves forward smoothly:

• Get prequali?ed —You can go to a lender or even explore ways to do this on the Internet. A prequali?cation letter shows the owner that you have the wherewithal to buy the home. After all, you are asking the seller to turn over
• his or her biggest asset to an unknown person. A prequali?cation letter also allows you to conduct business without having to disclose any personal ?nancial information to the owner.
• Learn about the market values in the area in which the Murrieta home is located —If you are working solely with the owner, you need to know if he or she is asking too much or is offering a bargain. The only way to decide this is to ?nd out what comparable Murrieta homes in the area are selling for. The classi?ed ads or the Web sites of other sellers or Murrieta real estate agencies can give you a sense of the neighborhood market.
• Decide if you really want to pursue the transaction —There is no reason to waste your or the owner's time if the house is not what you need. If the owner has advertised on the Internet, visit the Web site and look at the description. A seller who is serious about selling will include photos and other information about the neighborhood on the site. You also can use the Internet to investigate schools and other neighborhood amenities. Drive by and study the Murrieta home and its neighborhood. If the price is within your range, is comparably priced to other Murrieta homes in the area and both the home and neighborhood look promising, call the owner for an appointment.
• Set up a time to tour the Murrieta home —When you call, provide some information about yourself, including your name and phone number, as a courtesy to show that you are really interested. During the inspection, look at everything carefully. Do not allow the owner to make you feel rushed. You may want to come back two or three times. Each time you will learn more about the home and, equally important, about the owner. Establishing a rapport with the owner is desirable; before you make an offer, you will want answers to important questions about the Murrieta home, and a cordial relationship with the owner will make that easier.
• Finally, make an offer —Negotiate the price and terms and determine how the paperwork will be handled. You may suggest that your attorney take care of these details, or the owner may have someone in place to manage the transaction.

Buying a Murrieta home directly from the owner is not that difficult if you have done your homework and if you feel comfortable negotiating. You also can save a substantial amount of money during the purchase of your Murrieta real estate.

If you need any information on Murrieta Real Estate or Property please check our Murrieta Homes section on this website or contact us at any time.