How to Buy a For-Sale-by-Owner Home

You've been searching for months to find theeager the seller is to sell will help in negotiations and
perfect house. You've seen countless homes thatdon't forget that commissions aren't being paid and
just don't fit what you're looking for and then youthat at least 3% should be deducted from the
find it. It's exactly what you wanted, but it's for salepurchase price to compensate for the lack of an
by the owner. What do you do? Here is a simple andagent.
easy guide to help you through the home buying4. Have a lawyer, real estate agent, or title company
process.review any contract before signing any
1. First you need to do your research and make surefor-sale-by-owner home.
the house is worth what the seller is asking for it.5. Put down a deposit and obtain a deposit slip.
You want to compare apples to apples. Look for6. Have a home inspection. Make sure you hire the
houses in the surrounding area that are the sameinspector yourself and make sure the contract is
amount of bedrooms, baths, square footage, lot size,contingent upon a clean inspection. If minor repair
and have the same quality of amenities. This can bework needs to be done you can ask the seller to
done by driving the area and looking for otherrepair it before the close of escrow or provide
for-sale signs and by doing research on the internet.money for the cost of the repairs to you at closing.
Houses can be viewed at real estate company's7. Work with your lender and the title company to
websites. Look for at least three comparable housesset a timeline and date for closing. Homes typically
and talk to the seller about how they arrived at theirclose 30 days from the date of signing a contract
asking price.and are contingent upon a home inspection and the
2. Before making any offer on a home, make surebuyer obtaining financing.
that your finances are in order. Check your credit,8. Sign documents at the title company, obtain your
research home loans, and contact a reputable lenderhome keys, move in and celebrate.
in your area to pre-qualify for a loan. This will giveWorking with real estate agents can take an already
you a backing during negotiations.stressful, home buying experience and make it
3. Draw up an offer based on your research ofworse. Buying a for-sale-by-owner home will require
comparable properties. Knowing how long thehard work, research, and trusting your gut, but in the
property has been on the market and sensing howend it will be well worth your time and energy.