10 Easy Steps to Buying a FSBO Home

Step 1 Search for houses

Step 2 Obtain financing

Step 3 Set up showing

Step 4 Consider inspections

Step 5 Make an offer/negotiate

Step 6 Pay deposit

Step 7 Get ready

Step 8 Final walk through

Step 9 Attend closing

Step 10 Move in

Step 1 (Search for houses)
The first step in buying a new house is finding the right house for you. Start by entering search parameters on the search listings page in our website. Some search parameters include; number of bedrooms, number of bathrooms, square footage, location, etc. Be sure to contact the homeowners if you have any questions about a property.

Step 2 (Obtain financing)
Being pre-approved early in the home buying process can make the difference between getting the house of your dreams or losing it to a pre_qualified buyer. It also gives you a clear idea of the price range you can afford. Make an appointment with a local mortgage company or a bank to start the process. When making an appointment ask what documentation you will need to bring to the first meeting.

Step 3 (Set up showing)
Make appointments to walk through the homes you've selected or visit during scheduled open houses. Take notes on your likes and dislikes for each house. This helps for later comparison and decision making. Don't forget to drive around the neighborhood and check out the schools, shopping, parks, and traffic volume. Ask the seller plenty of questions.

Step 4 (Consider inspections)
Before you make an offer, consider which inspections you would like to have done on the house. Inspections to consider include; home, termite, and well/septic. The inspections can be written into the Offer to Purchase as a contingency. A professional home inspection should include the roof, attic, heating & cooling unit, plumbing and electrical systems, and the foundation. Prices can range from $200 - $500.

Step 5 (Make an offer/negotiate)
Once you've decided on a house, complete the Offer to Purchase form and deliver it to the homeowner. Consult a real estate attorney if you have any questions about the Offer to Purchase form. The seller may wish to counter the offer. If you agree with the counter offer, return the signed form to the sellers. If you don't agree with the counter offer you can make another offer and so on until the price is agreed upon and offer is accepted.

Step 6 (Pay deposit)
A deposit (earnest money) may be requested by the seller. It's a way of protecting the seller in the event you back out of the agreement. The deposit can be any amount you agree upon, but typically range between $500 - $3000. The money can be held by the seller or in escrow. An escrow account can be opened through title companies, attorneys, banks, or an escrow service.

Step 7 (Get ready)
As your closing date approaches there are a few things you can be doing to get ready for the move into your new home. Make arrangements to have the meters read, phone service transferred, mail forwarded and other services such as garbage, cable TV and newspaper delivery taken care of. Doing as much as possible ahead of time will make moving day much less stressful.

Step 8 (Final walk through)
A final walk through can be arranged with the sellers a few days before your closing date. This is an opportunity for you to walk through the house and verify all terms of the Offer to Purchase contract and inspections were met. It's also a good time to confirm the closing date and time with the seller.

Step 9 (Attend closing)
It's important to stay in touch with the seller, your lender and your real estate attorney (if your using one), right up to closing. You'll want to be sure all documentation is ready for the big day. Review the closing costs with your lender and or attorney well before closing to avoid any last minute surprises. At closing you will sign the necessary paperwork and transfer keys.

Step 10 (Move in)
You can begin moving the day of your closing unless other arrangements have been made with the seller. Things can get a little hectic when the seller is trying to move out on the same day your trying to move in. Discuss this ahead of time and get the details in writing. Check out the 'related services' page for links to services to help in the move.

This was written as a helpful guide to buying a FSBO home and may not include all the steps required based on your specific situation. If you have questions regarding the buying of property, you may want to contact a real estate attorney.