6 Pro Tips for Buying a Home for Sale by Owner
Home for sale by owner is an old-fashioned scenario where the owner does not wish to involve an estate agent in the sale process. The approach of selling a home without the representation of licensed real estate agent is chosen widely for many reasons. Firstly, it leads to an increase in income by not having to pay commission to the estate agent. Secondly, one exercises full control over the cash inflow and lastly the sale takes place in a short span of time.
No doubt the process of buying a home directly from the owner is hazardous and challenging, but when performed safely and under guidance can be rewarding in nature.
Hence before you buy an FSBO be particular to follow these tips to ensure a safe and worry-free home purchase.
- Understand the Sacrifice:
Just because the home seller does not intend to work with a realtor doesn’t mean you cannot hire one. You just have to figure out the best pro service for yourself.
And if you want to follow the suit and refrain from hiring an estate agent, then you must be prepared to miss on all the estate superpowers pertaining to market analysis, price negotiations,and inspection services.
- Seek an Approval:
A pre-approval from the mortgage lender is a necessity to obtain a home loan. Therefore, make sure you file all the income and tax returns timely and hand them over to the mortgage lender. Doing so will keep you informed of the amount approved and helps in determining the price range.
- Stay Focused:
Home inspections are obviously needed to ascertain the condition of the home. But without a realtor or home inspector, the owners are more likely to show the maintained areas of the home, leaving the scoffs and sneers under the carpets.
Don’t be afraid of offensive behavior of the seller and do your duty well. Open every door of the house, inspect every nook and corner and do not leave any ductwork uninspected.
- Obtain CLUE:
Before you buy a home, essentially obtain CLUE or comprehensive loss undertaking exchange or a report from the seller. A CLUE report helps in knowing about the insurance claims in past five years. In case a claim pops up, ask for clarifications and examine all the documentation.
- Undertake Home Inspection:
You must have inspected the house yourself prior to finalizing the home deal. But it is highly recommended to avail the services of a home inspector.You can simply take them alongwith you during the home visit or schedule a special visit.
After the home inspection report is finalized, review it with the inspector and the seller. Home inspection and reports serve for the purposes of justification of necessary repairs and upgrades, opening doors to price negotiations.
- Hire a Real Estate Attorney:
Every city has its own rules and law specific to the sale of the particular type of property. Hiring a real estate attorney makes the task of framing a property sale contract easier for you. They will likely review the drafted sale contract and provide suggestions before finalizing the purchase.