With the rising popularity of selling homes by owner, have risen some misconceptions that should be straightened out to clarify the process. The first thing that we should look at is how financing works in the for sale by owner world. One thing that occurs more often than it should is when buyers think that “for sale by owner” means that the owner is also offering financing. Most of the time this is not the case. This error is usually seen when people with little or damaged credit feel that it is in their best interest to avoid mortgage brokers or banks. This is a huge mistake as individuals such as mortgage brokers are experienced and trained to deal with these individuals and to help them repair their credit and obtain a favorable mortgage.
Its a good idea to seek out a mortgage company that is experienced, even specialises in the financing of for sale by owner sales. These companies differ from most mortgage companies in that their services are more comprehensive than most. They have expanded their offerings to include many things not usually covered by traditional mortgage companies such as closing contracts, title issues and inspections. The closing of a home contract is one of the more confusing aspects of the purchase process and should be handled by a trained professional. Also take into account that most mortgage companies rely on real estate agents to bring them the bulk of their business, therefore they are ill-equipped to provide educated for sale by owner financing. This is why its good to find a for sale by owner specialist mortgage company when dealing with someone who is selling their home themselves.
Another misconception deals with the fact that the buyer is saving money by dealing with a for sale by owner situation. The truth is that usually the seller is the one trying to save money on the real agent’s commission. If they have subtracted the price of the agent from their asking price, it is possible to save some cash.But this is hardly ever the case. Most for sale by owner sellers are listing their Spanish property at market value as if an agent was selling the property. Then they attempt to do everything themselves and pocket the cash that would normally go to the agent.