What Are For Sale By Owner (FSBO) Homes?
When purchasing a home, one wouldn’t immediately resort to the idea of looking at houses for sale by owner. The typical scenario is finding houses online and reaching out to the seller, who is often a real estate agent or realtor. When buyers are keen to save as much as they can, buying a house directly sold by its owner becomes an attractive choice — because, for one, avoiding real estate agent commission would be possible.
The idea behind for sale by owner (FSBO) homes is pretty straightforward. The owners sell their houses without assistance from real estate agents. Besides saving money on agent fees, sellers choose to deal with the process independently because of the availability of online advertising platforms. These tools help spread the news about their properties for sale, allowing them to reach their target market with minimal effort.
The Pros of Buying an FSBO Home
FSBO homes are typically pre-owned housing units, which means they’re likely more affordable than the brand new ones in the market. Choosing an FSBO home has several money-saving perks, at least on the side of the buyer. This is true if the buyer is a natural negotiator. Those who plan to purchase for sale by owner houses will have access to the sellers, leading to a direct negotiation regarding the total contract price and other associated costs.
Another great benefit of buying an owner-sold home is that you’ll get a more in-depth insight into the unit and the neighborhood. Plus, no better person can walk you through the house’s features than its owner. Even though this is the case, you shouldn’t dismiss visiting the property in person to ensure that it’s in good condition.
For Sale By Owner Homes: What’s on the Market?
FSBO homes aren’t limited to traditional or single-family houses, but these types are the most common in online marketplaces. Other options include fully-furnished condo units, especially if you look at FSBO properties in the growth centers of Metro Manila. For instance, you’ll find FSBO condo units in Makati City and Taguig City, priced around PhP5 million to PhP9 million. There are also vacant lots sold by owners, typically located in progressive areas of provinces like Batangas, Pampanga, and Cebu.
Meanwhile, FSBO single-family homes are more common in suburban areas like Rizal and Cavite, with prices ranging from PhP7 million to PhP10 million for five-bedroom houses.
Getting the Best Value From FSBO Homes
While purchasing owner-sold houses has substantial benefits, you can further ensure excellent value for money by doing a couple of things. First, get educated on the real estate market, particularly pricing, so you won’t end up paying more than what’s necessary. Second, familiarize yourself with the paperwork if you don’t want to use an agent for legal matters. Still, you’re better off hiring a real estate attorney to review the purchase contract and other paperwork.
And finally, work on your negotiation skills. Part of this is putting your finances in order to know the accurate maximum price you can afford to pay. Building a positive relationship with the sellers can also help in learning about their requirements and price expectations.