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What You Need to Know About For Sale by Owner

April 01, 2012 | Comments: 0 | Views: 207

As a buyer in today's market it has never been more important for you to understand how each different type of sale works, and this includes for sale by owner. While the real estate market is still struggling to recover throughout the country more and more buyers have tried to sell their homes without the use of real estate agents. The main reason for this move is simple, to try and save on the real estate commission. The fact is it is not easy to sell a home and if you are interested in a home that is for sale by the owner there are a few important things you will need to understand before you even speak to the seller or try to negotiate in any way.

Firstly, just as with any property, no matter how it is for sale, you need to commit yourself to a budget before you approach the seller. Many people have made the mistake in the past of overextending their financial reach simply because they were in love with the property. This type of financial decision making will eventually catch up with you and not in a good way. Once you are firm on your budget, do the math. You need to have an idea about what your offer will be to the seller, how high you can afford to go and of course once your offer is accepted can you afford the down payment and will you be approved for your mortgage? These are all financial questions that need to be answered firmly before you can ever approach the seller.

Now you do your research on the property. It's important to compare the home you're looking at with the other homes in the area. This can immediately tell you if the seller is asking far too much for their home or too little. A simple visit to your local board's listings can help you see what they offer as the selling price and what they actually sell for; the difference is what should interest you the most. Some neighborhoods are more desirable than others and this should definitely be taken into account when the price is concerned. Aspects such as proximity to schools, downtown, parks, waterfront, etc. all add to the dollar amount.

Also, it's important to consider how long the property has been on the market. If it has been on the market for longer than 90days this is a definite red flag. This could mean there is no interest, for what reason you may not be sure and it could also tell you that the seller isn't budging on his price and this too is also a warning sign to be considered.

Lastly, you need to be aware that a real estate attorney is necessary in order to properly complete a sale with no real estate agent to help you. Your chosen attorney will help you successfully close the deal, negotiate with the seller, and investigate the property for liens that may come back to haunt you in the future.

For professional Calgary real estate services and listings, visit - the site is clean and informative, with details about Calgary Homes including NW Calgary Real Estate.

Source: EzineArticles
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