Here are some tips for buying a For Sale By Owner property. More and more private sales are showing up on the market. Buyers now have the option to deal directly with the owner. After all, who knows it better?
- Determine your budget. Before you start the process of looking, determine what your comfort zone is. Don't forget to factor in property taxes, utilities and unexpected repairs.
- Get pre-approved for a mortgage. You can waste your time if you don't make this your first step. Credit ratings and debt loads will determine what you qualify for. If you don't make this your priority, you can spend a lot of time looking at homes you cannot afford. Another benefit of a pre-approval is the mortgage company will lock in the rate, in some cases up to 120 days. This is great insurance incase rates rise before you take possession of the home.
- Search for your new home. It is estimated that 90% of buyers use the internet to search for their next home. You can subscribe to the buyers update option offered on HomesByOwner.com. Popular websites for real estate sales are Kijiji.ca and Craigslist.ca.
- Contact the seller. Once you find a private sale you are interested in, contact the owner directly. You will find this a relaxing experience as there is no commissioned sales person involved. Ask your questions and make an appointment to view the property.
- Determine if this is the home for you. You might require parks, certain schools for the kids or other factors that will make this a good choice for you. You can change most features in a home, but not the location.
- Hire a lawyer. You might find that it is a good idea to get the advice of a lawyer before you go too far. They can help you prepare and offer as well.
- Get the home inspected. You can make this a condition in the offer you make. It is a common clause in agreements these days. If the inspector finds something that you will not accept, it is your opportunity to back out of the deal.
- Closing the deal. This is where your lawyer earns their fee. They will make sure all the T's are crossed and the I's are dotted. When you are handed the keys on closing day, you can be assured that nothing will come back to haunt you.
As stated earlier, buying directly from the owner has its benefits. No one knows the property better than someone that has lived there for years. Plus there is no pressure to make a move and you have time to 'sleep on it'.
Check out our Durham Region For Sale By Owner website. There you can sign up to receive new and updated listings on HomesByOwner.com.
Search Durham Region Real Estate private homes for sale.
HomesByOwner of Durham Region
Toll Free - 866.964.FSBO (3726)
Sell Your Home. Keep The Commission.
