As you look around your area for a townhome to purchase, you may come across some that are for sale through real estate agencies and some for sale by owner. If the one you want to buy is for sale by owner, you might have a little more trouble buying the house, simply because you will not have someone helping you with the deal. Here are three things you should know if you decide to do this.
You will have to write a purchase offer yourself
The first step in buying a house that is for sale by owner is writing up a purchase offer, and this is something you will have to do yourself. If you do not want to do it yourself, you could always hire a real estate attorney for help.
In the purchase offer, you must state the price you are offering, a time frame in which the seller has to accept the offer, and the contingencies of the sale. A contingency is similar to a condition that must be met in order for the sale to go through. Here are some contingencies you might want to include on your purchase offer:
- That the home passes a home inspection
- That the homeowner's association (HOA) meets the requirements of your bank
- That your financing goes through
You can include other things too, but these are some of the main contingencies to add.
You should evaluate the HOA before you buy
If you have never lived in a home that is part of an HOA, you probably will not know what to look for when evaluating the HOA; however, this is an important step. The goal of this is to make sure the organization is well run and managed and that it is in good financial condition. There are a number of different things to look at as you evaluate the HOA, including the minutes from the meetings, the budget, and the balance in the reserve account.
You should understand the benefits of buying a house for sale by owner
Typically, there is one key benefit of buying a house for sale by owner, and this is that the price might be lower. If the seller does not have to pay a real estate agent a commission, he or she might offer the house at a lower price.
While you might pay a little less for a home that is for sale by owner, you will have to work the deal all by yourself. This is the one factor that many home buyers do not like about buying homes that are for sale by owner. If you have questions about this, contact a real estate agent today.