KGE Real Estate

When investing in real estate you need to consider ways that can get you the maximum returns on your investment. One of the best ways to get hold of viable properties worth investing in and those which can serve as vehicles of good ROI, is to first locate FSBO properties. FSBO pronounced ‘fizz- bo’ is the acronym for ‘For Sale by Owner’ and denotes a property deal that does not involve a real estate agent.

As the name suggests, it is the owner who is directly selling the property. Therefore all dealings with respect to the sale have to be made directly with the property owner. An FSBO deal has a number of advantages.

One advantage of dealing directly with the owners is that you can get first hand information about the property’s specific strengths and weaknesses.  Vital information on the history of the property, nearby schools, recreational areas, malls and shopping centers, health care facilities etc.  This can let you assess the value and desirability of owning the property from a resident’s perspective which can make you much more comfortable about the investment you are about to make.

Another advantage is that property owners are not real estate professionals and you will find dealing with them much easier than dealing with hardened professionals who unnecessarily hike the price of the property greatly lowering the profit potential of the deal. In FSBO deals owners usually do not price their properties very high and during negotiations usually agree to come down rather quickly on their quoted price.  Additionally, in their effort to close a deal, home owners are known to also offer incentives like a decorating allowance or covering the fees of the buyer’s agent etc. All in all, FSBOs offer great deals.

However, on the down side many home owners unintentionally give inaccurate details of the real condition of the house and associated problems. They may be unaware of the fact that something they accept as being normal may in fact pose a problem to a new owner of the property. It is therefore advisable to have a home inspection done when dealing in FSBO property. This may also satisfy the property owner as to the true state/worth of the property and would help close the deal at a much faster pace.

FSBO transactions can be completed quite smoothly if the owner has some previous real estate experience. This helps him understand that the longer a house remains unsold the more its position will worsen as it will make potential buyers suspect the existence of possible deficiencies or defects associated with the house preventing its sale.

On the other hand when you buy agent listed property it saves you a lot of trouble to assess the price as usually the property is priced realistically in relation to its fair market value. Conversely, selling at a higher price is sure to enhance his commission in the deal. Therefore he does have a vested interest in the deal.

It is also easier to find agent listed properties as agents are able to list properties on many MLS sites and also advertise in classified ads and real estate magazines. Agent dealings can also cut down the time needed to close the deal and transfer the property as they work behind the scenes even when not working directly with you.

In the end, it can be said that an FSBO real estate deal with a knowledgeable property owner can offer a more profitable real estate investment opportunity as compared to buying an agent listed property.