A lot of people have only thought about using a real estate agent to buy a home. It is the standard way to buy a home and the first thing to enter someone’s mind when they think of home sales. We have been conditioned to buy homes using real estate agents so many of us don’t know how to make an offer on a house that is for sale by owner.
Buying a home that is for sale by owner is a choice that can often open more doors and get better prices. Let’s take a look at how to make that offer and snag a house that is for sale by owner.
Get Preapproval For A Loan
Many homeowners who are selling a home on their own prefer cash. Home loans are a little more complicated to work with. If you say that you are going to get a loan when making an offer but have nothing to base that on, you will have trouble working with an owner.
Going to a bank and getting preapproval for a loan can do wonders. When a bank approves you for a loan you will know two things. First, you will find out how much you are going to be given for a loan. Second, you will get a letter from the bank that will show homeowners that you are eligible for a loan.
Make sure that the bank knows that you are going to be buying the home through the owner. Some banks will only lend to those who are using a real estate agent, but that is becoming less and less common.
Prepare A Good Faith Fund
Good faith funds are often used to secure a house when a homeowner is selling. The good faith fund is about 3% of the house price typically. However, you can negotiate to get a lower amount.
Consider Working With A Lawyer
A lawyer can help you to draw up a contract that spells out the whole process. You will know when inspectors are going to come, how long closing will take roughly, and the like. Lawyers also help to concrete a sale so there is less issues during the process.
Working with a lawyer not only makes the sale easier but helps to ensure that everything is proper. Real estate lawyers specialize in purchases and sales and as such can spot issues ahead of time. That doesn’t just include issues with paperwork but also scams.
Contact The Homeowner
The whole process works by talking with the homeowner. You can discuss how you want to handle the sale. Everything should be planned out and put in writing, including your offer.
Most states have some form of paperwork that you need to fill out when making the offer and completing the sale. Real estate websites and legal websites can help you find that paperwork.
Working with homeowners who are trying to sell their homes often goes well, but make sure that you are cautious. There are always people trying to use the system or get money quick. If you feel something isn’t right, don’t be afraid to stop.
Need To Sell Your Old Home?
If you have an old home and you need to sell it fast, than you should look into using a company that pays cash for houses. In the Washington DC area the leading cash for homes company is Congressional Home Buyers. Congressional Home Buyers is able to offer quick turnaround and amazing offers.
The process is simple and involves three steps. Initial contact, offer, and closing. You can have cash for your home in as little as 11 days. Quick enough to be able to buy a home sold by the owner.
Homeowners selling their own homes isn’t too uncommon. It happens more than people realize because it is harder to advertise. Now with Craigslist and similar sites, you can list your for sale by owner house easily. Use these tips to make your purchase easy.