buying a house being sold by owner

[KellyJef]

We looked at a house today that is being "sold by owner".

We are seriously considering making an offer, but haven't the faintest idea what the process is

We don't know what to do first.

Since there is no realtor involved, we don't know who to ask questions to?

Is there someone we can call to walk us through the process? Maybe a lawyer?

Any information would be truly appreciated.

[maat55]

I've bought one property and sold two, for sale by owner, it is nothing to fear.

You will look at the property the same, if you choose to make an offer, you just offer them a price. If they agree with your terms, you both sit down and fill out a purchase agreement(should be able to pick one up at your local office supply store, if they do not already have one)

In your terms you will want to list all your requirements for dates, contengencies and any repairs. You can arrange for an inspection or any requirements your lender may want. You will likely have to get an appraisal(your lender will arrange this at your expense) as well. It is good to ask for a seller provided warrantee on appliances.

Either you the seller or both will need to acquire a title company to handle the closing.

[Kris Jarczyk]

Talk to an attorney and he will guide you through the process and provide you with the correct paperwork that needs to be filled out. You(Buyers) and the Sellers will have to come to an agreement on the purchase price and closing date. Attorney will walk you through the rest. Good Luck!

[maat55]

Talk to an attorney and he will guide you through the process and provide you with the correct paperwork that needs to be filled out. You(Buyers) and the Sellers will have to come to an agreement on the purchase price and closing date. Attorney will walk you through the rest. Good Luck!

I've never used an attorney other than the ones that process the title at the title company. Is this the attorney you are refering to?

[Kris Jarczyk]

In IL we use Attorneys for real estate transactions. The title company is seperate and chosen by the Seller or Sellers Attorney. Some states do not use Attorneys for real estate transactions. KellyJef which state do you live in? Forgot that people on here could be from all over the country. Oops.

[maat55]

In IL we use Attorneys for real estate transactions. The title company is seperate and chosen by the Seller or Sellers Attorney. Some states do not use Attorneys for real estate transactions. KellyJef which state do you live in? Forgot that people on here could be from all over the country. Oops.

I too am used to giving advice based on my area, I would assume that a title company could advise someone of their state requirements.

[Kris Jarczyk]

I have never heard of someone going to a title company for advise here, but maybe they do in your area. Again, all states do real estate transactions differently and we are both giving advise that is the norm in our area. KellyJef need to see what is standard practice in their state. I guess what we are both saying is that it is not that difficult. Good Luck to you both!

[Seeker]

We looked at a house today that is being "sold by owner".

We are seriously considering making an offer, but haven't the faintest idea what the process is

We don't know what to do first.

Since there is no realtor involved, we don't know who to ask questions to?

Is there someone we can call to walk us through the process? Maybe a lawyer?

Any information would be truly appreciated.

The first thing I'd do in your situation is get pre-approved for a loan if you intend to borrow and purchase.

You might want to go here to research what forms may be necessary in whatever state you reside in (yes, even to buy):

Real estate forms and contracts plus everything else to sell your own home

The second thing to do is find a good lawyer to make sure that all contracts are legally binding and properly filed.

Third, make sure to hire a home inspector to fully report everything directly to you (hopefully without the owner watching like a vulture over him).

There's lots of tips on the Internet:

FSBO Homes - Buy a For Sale by Owner Home

For Sale by Owner: A Guide for Buyers - WSJ.com

You'd probably get better info with the state listed. Each states rules for FSBO differ. Disclosure of all property problems is a must.

And I would not recommend doing this without at least a lawyer to go over all contracts to safeguard your interests, knowing that you two are in your 60's and don't want to be "taken" in this transaction.

[maat55]

How many here use an attorney to buy a car or TV? Buying a house is not rocket science. If you are concerned about buying a lemon, you get an inspection, not a lawyer.

This is why you always buy the title insurance, this is done through the title company.

[graceful]

Everyone I know in NYS, NYC area, to be exact has always used a lawyer during RE transactions. In fact, if there is financing involved, the bank sends one also, so 3 are usually present. Closings typically occur in an attorney's office. Those closing documents are thicker than most phone books!

[KellyJef]

Thanks for all the helpful responses.

A little more information on our situation:

We will not be applying for a mortgage since the proceeds from selling our current house will pay cash for the new house.

I had assumed that the seller would have a lawyer draw up the sales contract and we would need to find a lawyer to represent us.

Hopefully, no realtors will need to be involved at all.

Our house is not actually on the market yet (we had not planned on selling for quite a while, but this new house became available unexpectedly through a friend of my daughter's and it's almost exactly what we would want. We currently have a two-story and after DH's knee surgery, his back problems which put him out on SSD, and his heart attack with a quadruple bypass, we need a ranch.

The good news is that the seller said they could give us up to 5 months to sell our house since they have a place they could move into on short notice until they decide whether they're going to build or buy another house.

Maybe we would be able to sell our house by owner as well.

Guess our first step is to simply get more information.

ONE MORE QUESTION -- Even though this is a FSBO, can we still make an offer that is 5% below the asking price?

BTW, we are in New York.

[Slug]

You can make any offer you want. FSBO does not mean no negotiating.

[KellyJef]

You can make any offer you want. FSBO does not mean no negotiating.

Thanks, I don't know why I thought it might be a little tacky to negotiate directly with the seller - LOL.

[feh]

Talk to an attorney and he will guide you through the process and provide you with the correct paperwork that needs to be filled out. You(Buyers) and the Sellers will have to come to an agreement on the purchase price and closing date. Attorney will walk you through the rest. Good Luck!

+1

Find an attorney. Should only cost a few hundred dollars. On such a large purchase, that is money well spent.

[nick__45]

It is easier to buy from an owner than through realtors because you can talk to the owner directly. When dealing with realtors, they talk to themselves and work together to keep price high because their fee is based on that.

You don't need an attorney for anything but do need a notary signature, which your bank will do for you for free or for a 15 dollars fee, the maximum they can charge. Since the sellers don't have to pay 6% commission fee, you should be able to negotiate closing cost payment for things such as inspection fee, title, etc. That is only 2% of the cost.