3 Things You Will Need To Do If Buying A House That Is For Sale By Owner
It's more common for people to buy homes that are listed through real estate companies than homes listed for sale by owner, but there are still a lot of people that buy homes that are for sale by owner. If you happen to find a home for sale by owner that you really love and would like to buy, you may wonder how to go through the home-buying process. After all, you will not have a real estate agent to help you with the required steps. If you are in this position, here are several things you will have to do on your own when buying a house for sale by owner.
Look Up Comps To Determine How Much To Offer
Before you make an offer on the house you want to buy, you should perform some research to find out what the house is really worth. Without doing this, you may end up paying way too much for the house. There are two good ways to do this. The first is to get an appraisal on the house. This will cost money, but it is something you will need to do for sure if you end up making an offer on the house.
A more affordable way to find out how much a house is worth is by looking for comps. A comp is a house that is comparable to the one you want to buy. To qualify as a good comp, the house must have sold within the last couple of months. This will show a recent value of the house, and you could use this value to compare it to the house you want to buy, and that will often tell you approximately what a house is worth.
Make A Purchase Offer
When a house is listed through a real estate agency, the agent that helps you find a house to buy will help you draw up a purchase offer on it when you are ready. Without an agent, you will need to do this on your own, and you will need to make sure you know what to include in it. Here are several important things you should include with the offer you make:
- The price you are offering to pay
- The amount of time the seller has to accept your offer
- What expenses you would like the seller to pay
- The contingencies you are including
Most of these items will be fairly easy for you to figure out, but contingencies is one you might not know a lot about. A contingency is basically a statement that requires something to be completed for the sale to go through. For example, a contingency might state that the offer is based on receiving a clear report from a home inspector. Another example of a contingency might be to state that the offer is valid if the owner will agree to replace the roof on the house. You are free to put as many contingencies on the offer as you would like. The seller of the house could accept your offer or counter your offer.
Hire A Real Estate Lawyer
A third thing you may want to do is hire a real estate lawyer for help. The lawyer you hire could help you locate comps for the house and could help you draw up a purchase offer. The lawyer will also help you with title work needed for the house and many other steps that are necessary when buying a house.
Buying a house that is listed for sale by owner might be a good idea in some cases; however, it is easier to buy homes for sale that are listed through a real estate agency. If you have questions about homes for sale, contact an agency in your city today.