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How do I purchase a home for sale by owner?

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October 09 2013 - Fairfield
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Answers (11)

I agree with all professionals. Get licensed Realtor and make an offer. Ask seller to pay the Realtor's fee. Then ask the seller who is his /hers representation.
The seller is trying to save money on commission, but most likely is not selling for lower price than rest of the homes in the area.
Also, ask Realtor to check the comps in the area. Make sure that you do all inspections on the  house, get licensed home inspector. There could be a problem with the property that seller might be or might be not aware of.
You do like to sleep worry free like the rest of us?!
Best of luck
 
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October 10 2013
I would hire a Realtor to represent you whether you pay them or have the seller pay them. Commission is negotiable. As a buyer it's important you have someone that understands the  CAR RPA and provides you with the proper disclosures. 
I know a lot of people think Realtors do practically nothing for too much money but that is because they probably did not have the proper one. Just like Doctors and Lawyers it's about experience, knowledge, and the ability to protect you.
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October 10 2013
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Easy.  You don't! unless you are a realtor or a broker.  I wouldn't purchase a home "for sale by owner" without that owner having connections with a realtor or title company to do the deal.  UNLESS the owner is a broker or realtor.  OR you hire a real estate attorney which is what I did.  I handed all paperwork over to him and he took care of the rest except for the bill.  No offense to realtors out there, but we don't need you. 
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October 10 2013
First, I recommend you speak with a lender to apply for a loan and prequalify. When you apply for a loan, lenders like myself will need to look at several different things if you are trying to prequalify for a loan.

1) Proof of income for each person that will be on the mortgage which can be demonstrated through: one month of pay stubs, previous year's W-2 forms and tax returns, official documentation to demonstrate other forms of income (alimony, child support, etc.), and two year's tax returns if self-employed (all schedules, all pages)
2) Credit Report which they will pull
3) Employment History or Business Tax Returns if you're Self Employed
4) Personal assets such as: Recent balances and statements for bank accounts, most recent account statement demonstrating market value of any investments (stocks, bonds or certificates of deposit), documentation showing interest in retirement funds, face amount and cash value of life insurance policies, value of significant pieces of personal property, debt information, the balances and account numbers of your current loans and debts, including car loans, credit card balances and any other loans you may have.

These are just a few things you should have ready when you begin your buying process. If you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
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October 10 2013
A good option is to find a broker that will process the paperwork for you. If you already have a deal in place you should be able to find someone for about $500- 
That may save you thousands.
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October 09 2013
Step by Step...

1. Get pre-qualified by a mortgage broker or a bank

2. If the seller is willing to work with a buyer's agent, then ask your bank/mortgage broker for a referral or find a specialist for the specific location here on Zillow

3. If working with an agent isn't an option, hire a real estate attorney and have them write up an offer for you. 

4. Submit an offer to the owner, along with a $500-$1000 deposit check & your pre-approval letter. This offer will likely have mortgage and inspection contingencies included.

5. Negotiate a price 

6. Conduct inspections and submit a complete application package to your lender.

7. If any issues are revealed during the inspection, then negotiate further.

8. Once final price & terms are reached, your attorney will take over and write up a Purchase & Sale Agreement. Usually at this point, you will have to submit a deposit check in the amount of 3-5% of the purchase price.

9. The Purchase & Sale agreement is signed & the lender sends out an appraiser to the property to evaluate 

10. About three to four weeks later, the bank issues a formal commitment and within a week, you get to close on the property. 

11. Sign all closing paperwork and collect the keys. 
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October 09 2013
Hi Roy,

There are a few options:

1) You could ask the seller if he wouldbe willing to pay for a Buyers agent commission, or you can pay for one out of pocket.

2) You could work with the seller to do the transaction yourselves.

Obtaining the advice and guidance of a local expert is important.

All the best,

Arpad
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October 09 2013
To be sure your rights are protected you should find a buyers agent to assist you.  Real estate is not like buying a car.  It is much more involved.

The seller is looking out for their interests - you need someone on your side looking out for yours.
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October 09 2013
I would agree with the previous two responses, but also echo, that you can still have representation from an agent. Realtors help clients buy and sell everyday, so they are more familiar with the process and potential roadblocks than the seller of their own home would be. This could save you many headaches and perhaps hep you negotiate a fairer price. You can also factor the costs of your buyer representation into your purchase price if the current home owner is willing to do so! Best of luck!
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October 09 2013
You can contact the owner and discuss what he/she/they are looking for but, I would suggest having a Realtor of your choosing contact the seller and be there to protect you through the entire transaction. There is a lot that can happen and that is why an agent assisting you through the process is highly recommended. Generally a FSBO will not mind as they would only have to pay one agent a commission versus two.

I hope this helps,
Brian Walsh 
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October 09 2013
You go through the same process.  You need to be pre qualified by a lender, then you can make an offer on the house.  

Have you been pre qualified yet?

Are you working with an agent?

Those are the first two things you want to do.  
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October 09 2013
 
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