In the Market for a New Home? 4 Steps You Must Take When Buying Directly from the Owner
If you've been looking for new homes for sale, you know how tough the market can be. If you've been avoiding the homes that are for sale by owner, you may be narrowing your field unnecessarily. You don't need to avoid homes that are being sold by owner, but you do need to enter the negotiations prepared to do battle. Buying a home that's being sold by owner isn't impossible, it's just a bit more difficult to get through. Here are four crucial steps that will help you navigate through a real estate transaction that's being handled by the owner.
Start with a Pre-Approval
If you're going to be bidding on a home that's being sold by owner, the first thing you need to do is secure your pre-approval. Not only will your pre-approval tell you exactly how much home you can afford, it will also provide you with a powerful negotiating tool when you start bargaining with the owners. They're going to be seeing a lot of potential buyers. If you're already pre-approval, you're going to move yourself right to the head of the line, which is where you want to be.
Hire Your Own Realtor
If you haven't started working with a realtor of your own, now's the time to fix that. The owner of the home you're interested in may have opted to go it alone, but that doesn't mean you have to. It also doesn't mean that you should. In fact, that's the worst thing you could do. Now that you're considering a home that is for sale by owner, you need to hire a realtor. They'll help you through the entire process, including all the paperwork that may look like it's written in a foreign language. They'll also help you identify potential pitfalls in the transaction.
Conduct a Thorough Inspection
While you're searching for the perfect home, it's crucial that you conduct a thorough inspection of each property you tour. Don't simply look at the cosmetic aspects of the home. You need to open doors, turn the lights on, and flush the toilets. This might seem invasive when the owners are standing right there, but it's something you've got to do. Not only that, but it's also a good idea to pay for a professional home inspection before you sign the contract to buy a home. The last thing you want to do is inherit costly problems that could have been identified with a home inspection.
Open an Escrow Account
If you decide to place a bid on a home that's for sale by owner, you need to open an escrow account as soon as possible. There will be a significant amount of cash involved in the transaction, and you want to make sure that it's safe and secure. If the home owner requires a good faith deposit, be sure to place that money in your escrow account. That way, you know it will be there when it's time to sign the contract and buy the home.