If you’re like many people, you’ve seen homes around Knoxville listed as “for sale by owner,” or FSBO. But can you buy these houses, and how does it all work? This guide explains.
Guide to Buying a FSBO in Knoxville
Buying a home that’s listed as for sale by owner is a little different from buying one that’s listed by a real estate agent – but that doesn’t necessarily mean that you shouldn’t do it. However, there are a few caveats to that. Before you attempt to buy a FSBO, you should:
- Work with a buyer’s agent of your own. You need someone in your corner who understands how Tennessee laws apply to you and your transaction, as well as someone to negotiate with the seller and handle all the paperwork associated with your transaction. However, be mindful that there are a small number of FSBO owners who only want to work with people who are not represented by a buyer’s agent; in cases like that, you assume a lot of risk.
- Make sure the home is worth what the seller says it is. You’ll still want to have the home appraised, and remember that people who sell their own homes don’t have a real estate agent telling them how much the space is worth. That means the home may be grossly overpriced for the market, and you’d be better off buying a different house.
- Ensure that all problems are disclosed. Sellers who are working with a real estate agent will know that they must disclose all of a home’s problems (at least those that will impact your enjoyment or use of the home, provided that they know about them) to you. However, sellers who aren’t represented may not know that – or they may not care that they’re legally obligated to tell you about problems.
If you want to buy a FSBO home in Knoxville, here’s how to go about it:
- Get preapproval for a mortgage.
- Tour the home extensively and look for problems yourself.
- Compare the home to others that are currently listed for sale in the same area; this will give you an idea of whether the home is fairly priced.
- Make an offer.
- Have the home inspected by a professional.
It is absolutely in your best interested to be represented every step of the way. Your real estate agent will build clauses into your purchase contract that will let you back out of the deal if you can’t secure financing, if the home has big issues that you don’t want to deal with, or something else goes wrong. You do not want to buy a home without having an experienced professional on your side!
Are You Buying a Home in Knoxville?
If you’re ready to buy a home in Knoxville, I’ll help you find one that’s perfect for your needs. Call me at 865-368-5150 now and let’s talk.
While you’re here, use this Knoxville home search – you can see listings instantly! You can also look at:
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