FSBO: For Sale By Owner Connecticut
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Learn how to increase the equity in your home or investment property before you sell. In a market without noticeable appreciation you need to lower expenses and increase income and make improvements that have immediate positive effect on your equity, not just value. Increasing your value by spending more than you will get back is a losing proposition.
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We have several funding sources, so we have the ability to buy & flip, buy and hold or simply show you how to improve your property to increase the equity while spending as little as possible. There is no obligation!
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Have you recently come across the term FSBO and are curious to know what it stands for? Well, here’s the answer- it means ‘for sale by owner’. FSBO is a real estate transaction in which the owner of a property directly sells it to a buyer without taking the help of a real estate agent or broker. This method of property sale is generally used by those sellers who do not want to pay a substantial commission to the agent.
This is basically a money-saving transaction method because in most cases, the commission that needs to be paid to the agent is around 6% of the total sale value. It is a vital chunk of the earnings. The seller’s agent and the buyer’s agent split this commission evenly. Another instance when sellers make use of the FSBO method is during a boom in the real estate market. They think that due to the high demand for property, the house can find a buyer easily. However, it is not so simple as it seems. FSBO has its fair share of pitfalls and shortcomings.
- It is difficult to find an FSBO house because such properties are not listed on the MLS systems which are the main source for locating properties. The only way to find FSBO homes is to browse through the local newspaper and fliers containing ads posted by the seller.
- This transaction is risky for both the buyer and the seller because there is no third party involvement or representation from an agent which can serve as evidence in case of a fraud.
- Another point is that FSBO homes tend to be an over-priced because of the lack of awareness of the market conditions on the part of the seller.
- The buyer needs to carry out the inspection process himself to ensure that there are no big flaws which need attention. The inspection needs to be thorough since there is no broker who can check all these aspects.
Avoiding these pitfalls
If an FSBO transaction is successful, then it can save a lot of money for both the parties involved because of not having to pay commissions. However, to ensure the safety of the transaction, the buyer at least needs to hire a real estate agent even if the seller does not. Many sellers allow this to make sure that the paperwork is done correctly and to check whether the buyer is qualified to purchase the property or not. The agent can provide representation; do the negotiation and inspection to acquire an FSBO home for the buyer at a fair price and in compliance with all the norms. The cost of hiring should be redirected to the seller and if he does not agree, the buyer can include it in his offer price.
So choose a reputed real estate agent to get your own FSBO home quickly.