When looking for home bargains, houses for sale by owner should be on the top of your list. Many people think that a real estate agent is necessary when buying a new home, but this isn’t necessarily true.
Though you can get bargains on houses for sale by owner, there are certain things to expect from these kinds of home sales.
First, you will have to do your research and stay on top of your finances. When you are buying a home from the owner, you should expect to do much of the paperwork related to the sale on your home, but you can also negotiate with the owner of the home about the closing price.
Because you can negotiate prices and skip many of the fees associated with using a third party, houses for sale by owner can be great home bargains. When buying a home from the owner, there are three main things you should keep in mind.
1. Choosing your home from all the houses for sale by owner
The search for the perfect house can be the hardest part of buying a home, but it’s easy if you keep certain things in mind while searching for houses for sale by owner. You can search for homes for sale in your area on real estate listing websites, but don’t forget about local classifieds.
Often, owners will list homes in newspapers and local circulars rather than on websites because advertisement prices can be cheaper.
Also, remember that the location of the house and the price of the house are usually linked. This means that you can find lots of home bargains, but these cheap houses for sale by owner might not be in a great neighborhood. When searching, take the time to drive around the neighborhood and make sure the location of the house will work for you and your loved ones.
2. Negotiating sales of houses for sale by owner
One way to do this is to get pre-approved for a mortgage loan. If you can prove to the home owner that you are capable of paying for the loan by showing them a pre-approved mortgage, they will be more willing to sell you the home at a reasonable price.
You can also negotiate with the owner to get a lower closing price if you have done your research on the property. You can find a home valuation or property report online for free by entering the address of the home you want to buy. These reports will tell you what other homes in the area have sold for, so that you know whether or not you are getting a good price.
Armed with this knowledge, you can get home bargains on houses for sale by owner.
3. Closing on a “for sale by owner” home
After you have negotiated a price that you and the home owner are comfortable with, you will have to fill out contracts of sale. You can find real estate contracts online at legal websites, and it’s a good idea to provide your own contracts rather than relying on the owner to provide them.
If the owner does provide contracts, you should definitely hire an attorney to help you look over all paperwork.
This may seem like an added expense, but remember that you’re saving money by buying directly from the owner. Your mortgage lender can also help you with filling out contracts and other paperwork related to the sale.
When you are drawing up your contracts, there are many different things your attorney can help you with, like figuring out who pays taxes, when the owner will give you the keys and planning for contingencies like construction defects, pests or title issues.
It’s also a good idea to buy title insurance on your new home to protect you against any unforeseen fees or issues with the title of the home.
While you can find great home bargains on houses for sale by owner, you should always get professional advice before you sign your final contract.
Property Up is a leading Chicago Illinois real estate agency serving the northwest Chicago suburbs, as well the entire Chicagoland area. Due to their stellar reputation of helping people find their ideal homes for more than a decade, Property Up has a highly visited website that receives a significant amount of queries on a daily basis.