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The level of properties sold via the “for sale by owner” route has been attractive to people buying Florida property in recent years as the market has been so buoyant. With sellers avoiding the payment of Realtor fees, it seemed as if buyers should be able to benefit from lower purchase prices. But contractual details and arrangements normally dealt with by a Realtor or attorney in the majority of other sales still have to be handled, so how are they to be dealt with in the for sale by owner scenario?

First of all, let’s think about the question of the asking price. How is the price of a home for sale by owner determined in this market? When property price appreciation was 30% or so, it was more important to actually buy the home rather than haggle over the price, lose it to another buyer and find that the market had moved ahead even more in the meantime.

In this current buyers’ market, prices have fallen way back from their peak and demand has almost disappeared, so it is absolutely vital to make sure you’re not overpaying. And whether the home is listed by a Realtor or it’s a for sale by owner property, making sure you have the offer price correctly pitched is key.

How do you make sure you’re offering the right price? You can check out:

* County records of recent sales.

* The Internet (for example, housevalues.com, realtor.com, truila.com).

* Local newspapers that contain classified property ads.

* Realtors via phone numbers on listed property signs in neighborhoods close to the for sale by owner home you’re considering.

Even though the information you collect by these methods may cover properties very different to the one you have in mind, at the very least you do have some starting data to work with.

After the price, lets now look at the other main things to consider in finding the right home for sale by owner:

1. Will you be able to work with the seller or is he just testing the market without any real intention to proceed?

2. Negotiation: are you prepared to haggle and get the lowest price you can? Can you do this without offending the seller?

3. Are there other costs involved in buying Florida property and are these to be paid by the buyer or seller?

4. Is there a standard form of contract? If so, which parts of the contract are essential and which optional? When are the buyer and seller legally committed?

5. Do you need to use an attorney and if so, at what point? Is the Title Company option acceptable and advisable?

6. Timing: how soon do you want to buy the house? How should you agree a closing date?

7. Performance: what are your rights if the seller backs out of the contract after its signed? How do you guard against this?

8. How do you co-ordinate the timing of loan funds with the closing date in the contract and what can be done if the loan company delays things (like many do!)?

9. When you schedule a Home Inspection and the report shows that repairs are required, who is liable to pay for the repairs?

None of these questions are new and they arise in virtually all real estate transactions, so if you’ve been through the process before or if you know that you can handle the problems, the purchase should hold no concerns for you.

But if the process of buying Florida property is new to you and you are not sure what to do, you should almost certainly consult a Realtor or an attorney to help you through the task. Unless you are one of the minority, getting the purchase right first time and avoiding a costly mistake will make a huge difference to your finances!