Owning your own home is at the heart of the American Dream. No matter who you are, having a home represents security for you and your family. But getting to the pinnacle of that dream can be quite elusive. We've all heard the adage, 'let the buyer beware,' and we need to exercise caution at every turn. Purchasing a home requires a major investment of money and if we're not careful, the wrong decision can ruin us. Realtors often say they are there to protect you but many cannot afford to pay their hefty commissions. Is it possible for people who are buying a home for sale by owner to get a good deal without the middleman?
What You Have to Watch For:
When you purchase a home from the owner, it can seem like the perfect solution to those who may have enough money for the home but may not want to spend the extra money on fees. In many cases, it can be a good deal but you still need to exercise caution. Homeowners may have many reasons why they are bypassing the professional assistance of a realtor and trying to do it all themselves. Keep in mind that you're not dealing with a professional so they may not be fully versed in the law or the requirements that must be followed when selling a home.
The Commission:
Many homeowners choose to sell the property themselves in order to avoid paying the commission to a real estate professional. Find out from the homeowner if he is willing to pay the commission associated with the sale of the property. Some sellers are flexible enough when buying a home for sale by owner, while others may not be.
There has been a lot of talk among realtors about homeowners who want to sell their homes themselves because of some problem with the property, and some of it may be true in some cases. It is up to you, the buyer to determine if the rumors are true in your case or not.
Full Disclosure:
The law states that homeowners must fully disclose the true condition of a house when they are trying to sell it. However, when buyers are not professional, emotions can get involved and they may try to minimize certain problems when they are describing their home. So, always request your own home inspection so that you won't be surprised by any problems after the sale.
Considering how many look to buying a home for sale by owner who are interested in selling their homes fast, it is important that you make sure that you have a mortgage pre-approval in place before you put in an offer. The seller may be entertaining multiple bids and you may not have time to get the approval afterwards.
Take note that people who choose to sell their home themselves are not always out to scam a buyer nor are they always trying to save on commission costs. You must treat each for sale by owner property individually. Just as not all realtors are the same, neither are all the homeowners who wish to sell their house themselves.