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FOR SALE BY OWNER (FSBO)
Why You Need a Mortgage Broker For A Seamless FSBO Transaction
Partner with a trusted mortgage broker who will support you through the FSBO process.
Seattle’s Mortgage Broker is ready to help make your FSBO transaction simple.
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What Is an FSBO Sale?
In an FSBO transaction, the seller takes on full control of the sale process, from setting the price and marketing the home to handling negotiations and finalizing contracts.
FSBO sales are appealing for those who want to save on fees and maintain full control, but it’s important for sellers to be well-prepared and knowledgeable about real estate processes to ensure a smooth transaction.
Ensure FSBO Success with a Mortgage Broker
A mortgage broker supports you through the FSBO process by helping buyers pre-qualify to ensure they are financially ready to purchase, and managing complex paperwork like loan applications and closing documents.
Partnering with a broker will ensure a smoother, more efficient transaction as they handle the financial details and provide guidance through documentation and paperwork.
Common FSBO Sale Types
Family FSBO
A Family FSBO occurs when a homeowner sells their property directly to a family member without using a real estate agent.
This type of transaction can be simpler and more cost-effective, as it often eliminates the need for agent commissions and allows for a more informal process. Despite the familial relationship, it’s absolutely crucial to handle the sale professionally to avoid future legal or financial complications.
Non-Family FSBO
A Non-Family FSBO is often seen in the form of a rent-to-own transaction involving selling a property directly to a buyer under a rent-to-own agreement, without the involvement of a real estate agent.
In this arrangement, the buyer leases the property with the option to purchase it at a later date. This approach can be beneficial for both parties: the seller generates rental income, and the buyer has time to improve their credit, avoid a downpayment (0% down contract) or secure financing while living in the home.
Get to Know the FSBO Sale Process
Once you have a buyer, whether it’s for a family FSBO or non-family FSBO sale, these are the essential steps to follow in order to have a successful transaction.
1
Prepare Legal Documents
Gather or prepare essential documents like a purchase agreement, title, and disclosure forms. Consider using MLS legal forms if necessary for record-keeping or to formalize the sale.
2
Agree on Terms
Discuss and agree on important terms like the sales price, closing costs, and any contingencies. Set the expectations early on to avoid misunderstandings.
3
Determine the Property’s Value
To avoid complications, ensure the property’s value is accurately assessed. Consider using a professional appraiser for best practice.
4
Secure Financing
If the buyer requires financing, ensure they are pre-approved for a mortgage before proceeding. This helps confirm their ability to purchase the home and reduces the risk of delays.
5
Draft a Purchase Agreement
Have a formal purchase agreement drafted that outlines the sales price, contingencies, and closing date. This step helps protect both parties legally.
6
Set Up Escrow
Open an escrow account to hold any earnest money or funds during the transaction process. This ensures that the money is secured until all conditions of the sale are met.
7
Conduct Inspections and Appraisals
Have the property inspected and appraised. This protects both parties by ensuring there are no hidden issues with the home and confirming its value.
8
Handle Title Transfer and Taxes
Work with a title company to transfer ownership of the property. They will ensure that the title is clear and that there are no outstanding liens.
9
Close the Sale and File Documents
Schedule a closing date and meet to sign the necessary paperwork. After closing, ensure the deed and any other legal documents are filed with the local county office to officially transfer ownership.
Have FSBO Questions?
I've had my fair share of experiences with lenders but a special mention has to go out to Joe for his tenacity with the way he works so hard to get your mortgage approved!
His communication all throughout was excellent. Emails were responded to almost immediately and the passion he has for his service was evident right from the start. I found his video updates super informative :)
If you're looking for a mortgage broker in Renton, WA then you won't find a more professional lender than Joe!
Scott Field
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The Complete Guide to For Sale By Owner (FSBO) in Seattle
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