Buying For Sale By Owner Houses
Buying for sale by owner houses is tricky business
that you best be prepared for!
There are many other advantages to having a buyers
agent, however they will want to be paid so you will
either have to find a seller that agrees to give a
commission to the agent or pay for it yourself.
Of course, you may
think that you are going to get a great deal because
the seller doesn't have to fork over an commission
on the sale but typically, this is not the case.
Although some may have a lower price due to the money
they are saving most usually want to keep it all in
Therefore, the first order of business when
contemplating the purchase of a for sale by owner
house is to determine if the price is reasonable. If
you have a buyers agent, they can do a market analysis
for you to find out if you are getting a good deal.
Another sticky area with for sale by owner houses
is making sure you get all the appropriate
disclosures. The seller may not know about all the
laws in your state that require him to disclose
certain things about the property, and you may be
buying more than you bargained for. A buyers agent
will help you with this, or you can hire an attorney
that specializes in real estate who can look out for
your best interests in these matters. At the very
least, you should become familiar with the laws in
your state and ask the seller about issues such as
lead paint, radon, upcoming changes in the
If you should find a for sale by owner house that
you fall in love with, you should have your attorney
or buyers agent help with the purchase and sale
contract to make sure your interest are protected. At
this time, you will need to put some money down on the
house. It is unwise to give this money straight to
the seller - have the attorney hold it in escrow, this
way you have a better chance of getting it back if
things go sour.
To eliminate any question as to the condition and
quality of for sale by owner houses, make sure you
have an inspection and have the sale contingent on the
house passing the inspection. The seller could be
selling without representation because the house has
major defects and an inspection will flush this out.
Make sure you know what the seller legally has to fix
in whole or partially before you finalize the deal
(every state is different but your attorney should be
able to help).