If you’re searching for a home and are looking for a deal, you may turn to homes that are listed as “For Sale By Owner.” These homes tend to be a great deal for the sellers, but not necessarily the buyer. This makes it all the more important that you hire a buyer’s agent for yourself. Your agent can check a bit of the work that the owner is doing without hiring a real estate agent for himself. When buying a for sale by owner property you’ll want to do all of the same things that you would do if you were buying a property that was for sale through a realtor including:
- Check the asking price through comps
- Get a property inspection
- Make an offer and complete contract negotiations
- Check how long the home has been on the market
Just because a home is for sale by an owner, there’s no need to give up on the normal procedures that one goes through in buying a home. You have the right to have a buyer’s agent represent you in the transaction. Beware though as some for sale by owners are not willing to pay commission to any agents including buyers‘ agents. Be sure that the contracts are clear in this area so that you don’t fall in love with a home only to find out that you can’t use your agent in the transaction.
Other Points To Consider In A For Sale By Owner Transaction
You may need to hire an attorney, especially for an estate sale or short sale.
You still need a home inspection and have the right to back out of the sale if something isn’t satisfactory about the home. The home inspection is important because it can reveal serious problems with a home such as high levels of radon, issues with the furnace, or a possible plumbing disaster waiting to happen.
You may want a C.L.U.E. Report
This type of report tells you what kind, if any, insurance claims have been made on the property in the past 5 years. The report will detail the date of the claim, the cause (if a natural disaster) and the amount that was paid to fix the damage.
You should still get pre-approved
Getting pre-approved before buying a home is just something that should be automatic for buyers. It really lets the seller know that you’re serious about purchasing a property.
Buying a for sale by owner home is the same as purchasing any other property. You’ll just need to be an informed buyer through the process in order to make sure you’re doing what’s right for you.