We’re often asked: “is it a good idea to buy a home that an owner is selling without a realtor?” The answer to this question is yes if the home is a good buy that meets your needs.
The best way to deal with this situation is to treat that house like any other home you’re interested in buying. That means you should learn as much about the house as you can before making a decision about it.
The first step you need to take is to talk to the owner and ask how much they want for the property. Have them give you a tour of the property and look it over carefully, then if you want to go forward you will have to do some research on the home.
How to Research a For Sale by Owner Home
You should next determine the home’s market value and compare it to the price the owner is asking. That way you can see if the price is realistic or if you should make a different offer. In some cases, owners ask for prices that do not reflect the Tri-Valley market. You can do this by having us run a comparable market analysis (CMA) or valuation report on the home. That will compare the home with similar properties in the area so you will know if the price is reasonable or not.
The next step you should take is to run a title search on the property. A title search will show you how much the home is mortgaged for and if there are any liens against it. This can help you avoid a lot of legal problems and additional costs.
Not surprisingly, many buyers get lost at this point because they’re not sure how to perform these tasks or what to do next. That may means it is time to ask for professional help. It is always a good idea to ask a professional realtor to look over any property you’re interested in and give you his or her opinion. We know the market and neighborhood specifics and can tell you if the opportunity is a good one or not. We can also help you run a CMA and a title search on the property.
If you decide to make an offer on the property, you should have the property professionally inspected before you obligae yourself financially. A licensed home inspector can tell you if there are any major problems with the house. He or she can also tell if you it is going to need any major work in the near future and if it is in compliance with local building codes. That way you can make a decision based on the house’s real condition. You should always hire your own inspector and we can help you locate an experienced home inspector.
Financing and Closing
You will need to arrange financing, unless your going to be paying cash, and the best way to do this is to get pre-approved for a mortgage. Getting pre-approved shows that you are serious and you have the money available. We can help you locate a bank or mortgage broker that can help get you approved. Once you’ve arranged financing you are ready to make an offer.
Once you have a home in contract you should go mortgage shopping even if you are pre-approved. You should do this because you could find a better mortgage with a lower interest rate. It is also possible that your existing mortgage lender will lower the rate or change the terms to match the competitor’s offer to keep your business. You can ask us for help at this point, because we know the local mortgage environment can help you find several excellent lenders.
Buying a house directly from the owner is not a complicated process however it is something you will have to do correctly. Make sure you get as much professional help as possible so the sale will go through allowing you to take possession of your wonderful new home.
