For Sale By Owner (FSBO) properties are advantageous within their own happy little right. This is a rich soil for planting any tree when doing real estate investments. It just depends on what the new owner has envisioned to purpose prior to buying the property. Happiness fills my heart with distant memories of the many closings transpired using FSBO (fizbo) properties. These properties are more flexible in the hands of a real estate flipper. The advantages can be numerous because an experienced flipper learns how to structure their deals from the very start as opposed to having to struggle with many regrets later. Here are some of the advantages of dealing with fizbo properties:
- Buyers title work qualifications from the closing lender upon completion of the flip can stretch an end closing up to 6-18 months away due to title regulations.
- Buyers do not include broker payment commission to realtors nor mortgage officers.
- Owners have options to use quit claim deeds, warranty deeds, mortgage purchase agreements, etc at their own discretion which could make or break a deal.
- Owners have more flexibility to determine price variations before the final sale which owners can not do with realtors involved.
- Owners have the ability to be at ease no pressure to pay for costly repairs in an "As Is" transaction not the same meeting FHA/ VA or lender requirements prior to an appraisal Not even a subject-to appraisal.
- Owners advertising cost is a minimal to FSBO. A simple classified ad will do or several online marketing firms can help locate a qualified buyer.
To Your Success
This site does not give legal advice. Please consult your attorney for legal consultation. My information is from personal experience in mortgage banking only. United Stated company. USCA title 26 IRC regulations.