|Question: What is involved in buying a house that's for sale by owner?|
When you buy a home directly from the owner, also known as for sale by owner (FSBO), no real estate agent or seller's agent is involved. Rather, the buyer and the seller deal directly with each other. Generally, the process for buying a house that is FSBO is the same as buying a house with the assistance of a real estate agent. However, many home buyers are intimidated by the thought of going through the home-buying process without a real estate agent to provide forms, suggest financing, write the purchase and sale agreement, or negotiate the deal.
Keep in mind that this lack of broker representation can actually be an advantage for buyers. First, the price of the home is not artificially inflated to cover the cost of the agent's commission. Second, you deal directly with the seller instead of having to make an offer through the seller's agent.