So, you want to buy a house for sale by owner, and the seller doesn’t want to use a real estate agent. Why? Who knows. It could be to save money on agent fees or the owner does not believe anyone to handle the transaction other than himself, or you just want to be more hands on on your first home purchase.
Like snake-handling, the process of buying a house for sale by owner can be challenging and present a number of tricky situations. But, in the end, if done safely and with proper guidance, it can be very rewarding for home owners.
- Hire A Professional Real Estate Negotiator
Just because your home seller doesn’t want to work with a property negotiator, doesn’t mean you can’t. Realtors are filled helpful knowledge on real estate market, so it’s a pretty smooth move to enlist one. You will just have to figure out how to pay their worth-every-penny fees.
If you choose to follow suit and skip an agent’s services, you’ll be missing out on all their real-estate superpowers and value added on to your negotiating power, like market analysis, price negotiation, inspection services and more. One of the most important things is navigating through stacks on stacks on stacks of boring paperwork to make sure your best interests are covered.
- Seek PRE-Approval
Before you decided to buy a house for sale by owner, you need to get pre-approved for a mortgage. That’s right, time to dig up tax returns, financial commitments, and hand it over to a banker.
They’ll sift through it all and let you know if, and for how much, you’ve been approved. Though tedious, the pre-approval process sets your price range, shows the seller you’re ready for business and can be a pretty powerful negotiating tool.
- Examine The House
Without a realtor, the owner will most likely be showing you the property in person, and he or she will explain the best part of the house and keep the home defects hidden.
But don’t let your fear of offending the owner stop you from doing your job. Open every door, turn on (and off) every light, inspect closets, mechanical fittings and leave no ductwork unchecked. This is a big home purchase, and flying through the process unchecked can lead to some messy circumstances.
- Make an Offer
By this step, you’ve looked and liked the house for sale by owner and you’re pre-approved for a mortgage, but before you submit the offer, you might want to go through this quick step-by-step process.
- Fill it with market price of similar homes.
- Compare all of them with your property of choice.
- Look at the seller’s asking price.
- Make an offer.
- Await their reply or potential counteroffer.
- Decide to either accept, counter back or leave the battlefield.
- Lawyer Up
This is a huge purchase and it’s best to do it with competent legal help, despite the “simplification” of modern real estate contracts.
Insufficient knowledge of the paperwork is the hardest part of a house for sale by owner transaction, making a legal expert a necessity, to avoid trapped in unwanted legal circumstances.
They can also do a title search to make sure there are no liens against it, and you can feel confident in your brand-new, super-clean title.
That’s it. You’re all set to buy your first/next house for sale by owner with confidence and peace of mindedness. However, you still need to do your own homework during big life decisions such as buying a property. You could find any information about the property in the internet or ask your friends/family or learn from strangers to gain more knowledge about the house for sale by owner.
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