With FSBO homes now making up 20% of the real estate market, it’s something that every house buyer should be aware of. The selling process is where the real work lies, but buying an FSBO home can offer a few more questions that buying through an agent.

Following these simple steps will allow you to be confident in buying an FSBO home, and not have to pay an expensive commission to an agent. If your dream home is FSBO, read on and secure that deal.

The first step is the same whatever kind of home you’re buying. Set the budget. Whether the home is FSBO or not, you need to be able to afford it, especially in these times. There are plenty of online mortgage calculators around to get an idea of how much you can afford.

Once you’ve done that, get pre-approved. If you know the price range, secure a pre-approval so you can get things moving if you find somewhere. Not only will it save disappointment if you do find somewhere, it also shows the seller you’re serious, and can afford their property. 

Conduct the search. There are plenty of places online to perform property searches. Many real estate agents link in to the Multiple Listing Service tool (MLS) to show a variety of homes on the market in your chosen area. Utilize this, along with other sources to find a suitable home. This guide assumes you have found one and it’s FSBO anyway, but just in case...

Contact the owner once you have found the home you’re interested in. Remember there are no agents or intermediaries here, you’re talking directly to the seller. There should be no delaying tactics or interference here. Ask them questions you want answers to, then schedule a viewing.

If you like the place, get a valuation or property report to ensure it’s value for money and a good price for the area. This is especially true if you aren’t from the area, and might not know the real prices for property around there. A property report will compare the last 20 deals done and allow you to gauge if the asking price is fair or not.

If everything is good up to here, hire an attorney. It will cost money, but it’s money well spent. For this you’ll then receive all the guidance and help you can afford in order to make sure the deal goes through to closing. Use a local lawyer, who knows the area and the local laws and such so they can better advise you on any peculiarities of city bylaws or other requirements.

Make the offer. You have counsel, you’re sure the price is good, so make the offer. Once it’s accepted, get the mortgage sorted as soon as possible, as approval can take some time. Being pre-approved takes some of the legwork out of the process, but there is still plenty left.

While the mortgage is being approved, get the house inspected. Depending on the results of the report, make plans for repairs, re-negotiate the price, or relax while gently nudging the lender occasionally for progress reports.

Seal the deal and get closure. The attorney will handle the paperwork and give you the keys. Now you can move in to your new home!

The process isn’t that much different that if you used an agent. You still access the MLS, view and make an offer, but you do the legwork yourself instead of having an agent do it. It means more work, but less paid out in commission!