What to Know When Buying a Home From Sale By Owner
Buying a home directly from the owner is a similar process to buying a home through a real estate agent. If you do not have a real estate agent and are handling the purchase on your own there are several things you should know.
You may think that for sale by owners are not as serious or dedicated to selling their homes, but most are. With help from the internet they know a great deal about the process and are intent on marketing their home and getting a competitive price for it. Many are willing to negotiate the price. For Sale by Owners are bound by the same laws as mandated by Federal and State as are real estate agents, so they must disclose anything pertinent to the home.
Be prepared to buy the home.
- Get preapproved for a loan. The seller wants to know you are able to buy the home.
- Check your credit score. A high score shows you are trustworthy.
- Hire a real estate attorney. You will need advice and counsel from offer to close. Your attorney should read through the sales contract before you close the deal and will assist you with financing and providing payment to the seller.
- Get a Valuation Report on the home. See how the sales price compares to similar homes recently sold in the neighborhood.
- Set contingencies in the sales contract. The final purchase is your decision and can be based on home inspection, present owner making needed repairs, clear title, pest inspection, if your loan isn’t approved, or the sale of your current home.
- Know what is in the sales contract. What is included in the sale; appliances, furniture, the children’s swing set? Make sure you know the deadlines for paying the deposit, financing, and other conditions.
- Get a home inspection. Hire a reputable, licensed home inspector who will look over the home from attic to basement.
Being prepared can ease the purchase of the home of your dreams from a for sale by owner.