Questions FSBO Buyers Need To Ask
Let's face it. When we evaluate something, we go about it by asking, and answering (or getting answers to), a string of questions. The quality of our evaluation is dependant on the quality of our questions. Buyers of FSBO homes can get some good buys right now, but without the help of a Realtor, they need to know what questions to pose.
The place to start is, "What price home can I afford?" First, figure this one out for yourself by looking at what monthly payment would fit comfortably into your budget. Be realistic. You probably would not be happy if you couldn't afford a meal out or a movie now and again and still meet your mortgage payment.
Next, shop for a lender, and pose the same question. If his or her answer requires a monthly payment larger than the amount you came up with, use your first figure, and "reverse engineer" to come up with a home price.
Now you're ready to begin your search.
Ask yourself what neighborhoods are convenient to your work, your spouse's workplace, and any other places that are really important to you or another family member. Which of these neighborhoods are attractive to you and have prices you can afford?
How do you live when you're at home? What things are REALLY important? How many bedrooms and baths do you need? Do you need a place to refinish furniture? A place to rebuild a vintage vehicle? A "cook's" kitchen? What things would be nice to have? A deck? A jetted tub? A theatre room?
Now, look for ads that meet your criteria. The Internet is a good place to start. Classified ads are good. Do "drive-bys" of any that interest you. Does it look appealing? Is the advertised price in keeping with neighborhood "sold" prices? If so, make an appointment to view the interior.
When looking at the interior, ask yourself if it meets the criteria you developed. Can you picture your main pieces of furniture in the rooms? Is the color scheme acceptable? (Remember paint changes can probably be negotiated.)
When you find the home you want, ask yourself, "Can it be bought for less than the advertised price? (Find out by making a WRITTEN offer at a price just below the lowest comparable neighborhood "sold" price you can find.)
Now ask yourself another string of questions. Is the home structurally sound? Are its working systems (heating, cooling, plumbing, electrical) in good order? Is it free from termites and/or damage from them? Is it free from dangerous gases such as radon? What's the estimated remaining life of the roof? Is there deferred maintenance, or has it been well maintained? (Find out by being observant yourself and by making settlement under your written offer subject to favorable results of inspections by a home inspector, termite inspector, radon test, etc.)
When all these questions are answered to your satisfaction, it's time to buy. The chances are REALLY GOOD that you'll enjoy living in the home.