Would you buy a home that is FOR SALE BY OWNER?

I know a realtor would say that they are worth every penny and I know some good ones. But some home owners want to save on the realtor fees and sell their home themselves. Does anyone have any advice on buying a home from someone you know and how best to handle it? An friend is wanting to sell their home. I am sort of interested, but don't really trust this friend. The home is only a few years old and there's not any problems that I know of and I would get it inspected and appraised. Looking for some feedback on this sort of thing. Thanks!Would you buy a home that is FOR SALE BY OWNER?
There is nothing wrong with buying a home that is for sale by owner. Realtors would like you to believe that it is in your best interest to use (and pay) them. Once you have chosen a house and reached a price with the seller you should have a lawyer draw up a purchase and sale agreement including all the things that you both agree on. Have a inspection done if you feel it is required, you also will need to have a title search done.these things can be handled by a closing company or in your lawyers office. You do not need a Realtor for this. Also, in case you don't know, realtors do not perform those things anyway. Remember a realtors fiduciary duty is to the person that is paying them.Would you buy a home that is FOR SALE BY OWNER?
A For Sale By Owner is really a good way of going. Have them pay your closing costs of up to 6 percent. Which is allowed by lenders. You can do your own purchase agreement (or the mortgage broker you are working with has them). You can also find free pruchase agreements on line. Type in words like ';free purchase agreement';.





Cost associated with your loan. You will need to pay for the appraisal up front (when it being done). You will need to pay for The Home Owners Insurance Coverage for 1 YEAR . The seller can help you with up to 6 percent of closing cost. So the title fee, lender fees, underwriting fees, broker fee, processing fee, flood cert, etc can be paid for by the seller.





YOU CAN ALSO DO A FOR SALE BY OWNER - YOUR MORTGAGE BROKER WILL HELP YOU %26amp; THE SELLER FROM START TO FINISH, TO CLOSE YOUR LOAN. THE PERSON YOU ARE WORKING WITH, WILL ORDER TITLE, ANY SURVEY’S NEEDED, INSPECTIONS IF NEEDED, ORDER PAYOFFS ON SUBJECT PROPERTY IF THERE IS A MORTGAGE ON THE PROPERTY





Failing to obtain a home inspection from a qualified inspector The job of a professional home inspector is to look over every major part of a home and write a report that judges the home’s quality and condition. A home inspector reports on the structural and mechanical condition of the home. After the inspection, you will have the facts you need to make a decision about buying your home.





A well-qualified inspector who has adhered to federal licensing standards can spot problems that you might not be able to see. Expect problems to be clearly explained, repair expenses closely calculated, maintenance costs estimated, and a written report delivered within a day or two.





You probably would not want to rely on the seller to point out defects in a house he is attempting to sell. There may even be hidden problems of which he is unaware.





Be sure your sales contract is worded so that any “earnest money deposit” must be returned in the event the house fails inspection. If a major defect is found, you have the option to cancel the contract and have your deposit returned, bargain for a lower price to compensate for the cost of repairing the problem, or have the owner make needed repairs before the sale.





Even before you get to the point of a contract and having a professional inspector look at the house, there are many items you can check yourself as you are shopping for a home.





Structure – Basement, check the foundation for cracks or water marks. Floors, are they level? Does the roof sag?





Water damage – Look for unevenly painted ceiling or wall; mildew odor in basement; signs of re-plastering or re-tiling in just one area of the room.





Water pressure – Flush toilet and turn on both hot and cold water faucets at the same time to test.





Plumbing – Ask what type pipes are installed and their age. If applicable, ask when the septic system was last inspected and cleaned. Stand near the tank to detect odor or soggy ground.





Wiring – A 100-amp system is typical in modern construction and uses a one-inch main line; this can be seen leading to the fuse box. Appliances such as dryer or range require a 220-amp line. Notice if lights flicker or don’t work. Check for electrical outlets . . . usually at least 2 in each room.





Energy efficiency – Ask to check last year’s heating and cooling bills. Determine if proper insulation has been used.





Pests – Be alert for small accumulation of sawdust in the basement. This might indicate an insect problem. Obtain date and results of the last wood-destroying pest inspection.





Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a ';hard'; pull and it drags down your credit score. When looking for a home %26amp;/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.





As far as the value of the home. If he is asking too much, when the appraisal comes in - and if it is under the asking price of the home, you are not obligated to purchase the home. Have that listed in the Purchase Contract. Make sure you have in the Purchase Contract that the seller will help with up to 6 percent of closing costs, and if you want any appliances etc to stay. Hope this helps you figure things out. If you need more help explaining the ins and outs, let me know. Have closed many properties that do not have a realitor involved. This is not advertising - just helpful information.
I don't think it is a problem with buying a house for sale by owner. A lot of people here where I live do that.
you don't trust this person? then you definitely need a realtor. They will view the contract, negotiate a fair price, and help you get an inspection. ALWAYS get an inspection. The realtor cost's you nothing and can even show you other properties that may be better in price, style, neighborhood, and many other aspects. Remember, it's a buyers market right now and you're in the drivers seat. Get a realtor, it's free and you won't have any worries.
Hire a Realtor. Most of the times you will not be charged if you are on the buying side of the transaction. Let the Realtor Negociate a commission with the seller. If the person wants to sell bad enough they will pay it. Or hire a lawyer, which probably will not be cheap.
just make sure you're paying fair value. a realtor will give you prices that neighboring houses sold for in the past 6 months.
we have bought three houses for sale by owner as realtors some times anoy us. but we are selling our house with a realtor because we do want to make sure all the paperwork is done ect. go to info tube. net and gather your paper work and read up on what you need to know. take your inspector with you if your serious and get him to look at the house with you WELL worth the money. as he can tell you problems which may affect your offer. GOOD luck.
Yes as long as you get a home inspection and comparable sales analysis. What do those two things mean? Home inspector companies actually give insurance that the house doesn't have faults, mold, etc. Comparable sales is how much are the houses similar to that in the area cost. You should pay the same or under the comparable sales in the area. For more about real estate due diligence, one of the best books found below can do it.