When a house for sale is by the homeowner this means that they are not using a real estate agent. If they list through a real estate agent, the homeowner will be responsible for paying a realtor’s fee to the agent representing the buyer and to their own agent. If the homeowner sells their home themselves, they are saving this money. Sometimes it means that there may be an opportunity for a better deal for the seller and buyer. However, buying houses for sale by owner can present a few challenges and risks. You do not have the benefit of a real estate agent to work with that could help make the transaction go smoothly. If there is a home that is for sale by owner then you have to make any negotiations or offers directly with the homeowner without the help of a real estate agent.
To help the purchase of a house for sale by owner go as smoothly as possible follow these tips.
• Make sure that you understand the services that real estate agents are being sacrificed. If you have been working with a real estate agent when looking at other properties and you find a house for sale by owner they will not be able to help because they work for commissions and in this type of real estate there are no commissions. You will be the one that will have to engage the services of the appraiser and home inspectors
• You should be pre-approved for a mortgage so you will know just how much you can afford when buying a home. If you have a letter showing that you are pre-approved for a mortgage it tells the seller that you can afford to buy their house for sale. A pre-approved mortgage letter prevents you from having to discuss your personal finances with the seller. A pre-approved letter can also be a negotiating tool against any other bidders on the property.• Make sure that when you are looking at the house that you stay focused because when you are looking at the property it will be the homeowner giving you the tour since there are no real estate agents involved. Do not hesitate to check out the cabinets, closets, etc and to ask any questions you might have.
• Be sure that you do not skip having a home inspection completed because the homeowner may not reveal problems with house. Some homeowners just want to sell their house, problems and all, so they may have diverted your attention when you looked at the home or hidden them. Some cases they homeowner may not even be aware of problems. A home inspector will thoroughly check the home and give you a detailed report of any problems.