| A For Sale By Owner Guide To Buying Florida Property

A For Sale By Owner Guide To Buying Florida Property

The level of properties sold via the “for sale by owner” route has been attractive to people buying Florida property in recent years as the market has been so buoyant. With sellers avoiding the payment of Realtor fees, it seemed as if buyers should be able to benefit from lower purchase prices. But contractual details and arrangements normally dealt with by a Realtor or attorney in the majority of other sales still have to be handled, so how are they to be dealt with in the for sale by owner scenario? First of all, let’s think about the question of the asking price. How is the price of a home for sale by owner determined in this market? When property price appreciation was 30% or so, it was more important to actually buy the home rather than haggle over the price, lose it to another buyer and find that the market had moved ahead even more in the meantime.

Now it’s a buyers market, though, and getting the valuation right is what matters above all else. A for sale by owner property is no different than a Realtor listing: unless you have money to waste, reaching an agreed price that reflects current market conditions should be at the top of your list.

So how can you make a price judgment without a Realtor? There are several sources of information including:

* County records of recent sales.

* Internet information: search online, for example at realtor.com or zillow.com or housevalues.com.

* Newspapers: read through the classifieds (Sunday or whatever is the best day for your area) and find similar homes to the one you’re looking at.

* Realtors: take a note of Realtor phone numbers on properties close to your home for sale by owner and ask them for the price of their listing.

None of these will take into account price differences because the home you’re looking to buy is probably different, but at least you’ll have some data to work with.

After the price, lets now look at the other main things to consider in finding the right home for sale by owner:

1. Will you be able to work with the seller or is he just testing the market without any real intention to proceed?

2. How prepared are you to bargain with the seller? How can you get him to lower his price without causing offense to him?

3. Are there other costs involved in buying Florida property and are these to be paid by the buyer or seller?

4. Can you use a standard contract or do you need to prepare a unique one for each purchase? What terms and conditions and information must be included in the contract? When does it become legally binding?

5. Does the sale of a Florida property require attorney involvement? How much can be handled by a Title Company?

6. What issues are there relating to the timing – does it matter if you can’t yet finalize a closing date?

7. If the seller won’t proceed even though you have a written legal contract, what happens then?

8. If you are buying property with the aid of a loan, how does the loan company work with you to make sure funds are available when you need them?

9. Most buyers pay for a Home Inspection to check for any faults in the property. When you then find that money is required to pay for repairs, does the buyer or the seller pay for the work?

Each real estate deal is unique but the answers to various issues that arise are specific to each individual contract. If you’ve bought Florida property before or if you know enough to cope with the process, you should be able to manage the job.

On the other hand, if you have any questions or concerns at all about buying Florida property, the usual advice applies: consult a professional. Don’t take chances with what for most people is the largest purchase they will ever make.

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