When you buy a home with a buyer’s agent, you will find that much of the annoying paperwork and negotiations are handled for you. As long as you work with a good agent, all you really need to do is monitor your finances and make sure all the documentation is signed.
However, if you are buying from someone who is selling the house for himself, a number of complications are added to the mix. As such, you need to know the things to do differently when buying a property that is for sale by the owner.
Get pre-approved for a loan
So you have seen the property and you love it. You can see yourself living in it for many years, so you should do everything you can to make sure the seller is comfortable with the fact that you want this home.
The best way to do it right away is to get pre-approved for a home loan. Discuss with the seller what they think the property is worth, and then apply for a loan for a figure close to that amount, if not above it. This shows the seller that you are a serious buyer and that a bank or lender has enough confidence in you for you to be able to buy the home, rather than just wasting your time.
Get it priced
When buying directly from the owner, you will need to make sure that you are not ripped off. After all, without real estate agent fees to worry about, you should be able to get the property for a little less than you would if you were both using a third party.
As such, you should be sure to get your own property appraisal before signing up for anything. This way you will get an independent opinion about the house that you can use when negotiating a price. Be very careful of any salesperson who does not allow you to bring people to search the house for you.
Talk to a lawyer
The main barrier to buying a home directly from a seller is the paperwork involved. You can agree on a price up front, but without the paperwork to back it up, the offer is meaningless. As such, in order to properly bid on the property, you will need to ensure that all associated documentation is complete and agreed upon.
If you are determined to keep real estate agents out of the transaction, your best bet is to speak with an attorney to find out exactly what you need to do to transfer ownership of the property. Different states will have slightly different rules, so it’s important to understand the things you need to do. With this information, you can make a formal offer and the seller will be more confident that everything will go smoothly.
