Many buyers assume that without an agent, an FSBO purchase is more straightforward. However, there are still several critical steps that must be handled properly:

• Drafting a Purchase Contract – A formal purchase agreement is required. We can provide a simple purchase contract to get the transaction moving and ensure all necessary terms are included.
• Title & Escrow Services – A title company is essential to conduct the title search, handle escrow, and facilitate closing to ensure the property transfers correctly.
• Negotiations & Due Diligence – Without a realtor, buyers must negotiate directly with the seller. We can help review fair market value and discuss important terms to protect your interests.

Home Inspections & Appraisals – Even when buying from family or a trusted seller, it’s crucial to conduct a home inspection and appraisal to avoid unforeseen issues.

One of the major advantages of buying from family is the ability to use a gift of equity, which can make homeownership more affordable. A gift of equity occurs when the seller (usually a family member) transfers a portion of the home’s equity to the buyer as part of the purchase. This does not eliminate the need for a mortgage—instead, it can be used alongside financing to provide additional benefits:

💰 Covering the Down Payment – The gift of equity can reduce or eliminate the need for a traditional down payment.
📉 Paying Off High-Interest Debt – Buyers may be able to use a portion of the equity to consolidate debt, improving their financial situation.
🏡 Covering Closing Costs – Instead of coming out-of-pocket, the gift of equity can help pay for necessary closing expenses.

We specialize in structuring mortgages that incorporate a gift of equity, ensuring buyers get the best financial outcome while maintaining a smooth loan approval process.

While FSBO purchases can work in certain scenarios—especially when buying from family—it’s still highly beneficial to work with a qualified real estate agent in most cases. A realtor can:

🔍 Help Identify Potential Issues – Agents are skilled in spotting red flags that could impact a home’s value or require costly repairs.
💬 Handle Negotiations – They ensure you’re not overpaying and negotiate favorable terms on your behalf.
📝 Manage Paperwork & Legal Details – Real estate contracts contain complex terms, and an agent ensures everything is completed correctly to avoid future disputes.
⏳ Keep the Process on Track – FSBO sales often experience delays because sellers are unfamiliar with the process. An agent helps keep everything on schedule.

If you’re considering buying a FSBO home but still want the benefits of working with a professional, we can recommend a trusted, experienced realtor who has a great reputation and will ensure your interests are protected.

Buying an FSBO home can be a great opportunity, but it does come with potential risks. Here’s what to watch out for:

• Overpaying for the Property – Without an agent, buyers may not have someone ensuring the price is fair.
• Hidden Property Issues – Sellers may not disclose problems that a professional would catch.
• Complicated Closing Process – Without an agent overseeing everything, misunderstandings, and delays can occur.

We can help mitigate these risks by providing guidance, ensuring the paperwork is in order, and connecting you with the right professionals to make the process smooth.

While FSBO purchases can make sense in certain situations, there’s a lot that goes into making sure everything is structured correctly, legally sound, and financially beneficial. Even without a real estate agent, you don’t have to go through the process alone.

We are here to guide you every step of the way, from writing up the purchase contract to working with the title company and structuring financing—including using a gift of equity to your advantage. If you’re considering an FSBO purchase and want expert guidance, let’s talk!

📲 Reach out today to discuss your options and see how we can help make your FSBO purchase a success!

At US Lending Company, we’re here to guide you every step of the way. Whether you’re just starting your search or ready to make an offer, our team is committed to helping you achieve your homeownership goals.

Contact us today to get pre-approved and take the first step toward your new home. You can call us at (530) 244-6830 

Ready to get started? Schedule your consultation online today!