As the saying goes, life is full of choices and very few second chances. That is why it is important to make the right decision right out of the proverbial box sometimes. This is most definitely true when it comes to the purchase of a home. This necessitates keeping your eyes wide open about a number of things when purchasing a home that sports a “For Sale by Owner” sign.
The first step to take is to find out if it really is being sold by the owner! In some cases, a representative may try and promote a home as being sold by the owner when it really isn’t. Such dishonesty should always raise red flags. So, be sure to actually ascertain that the home is really being sold by its owner.
When a home is being sold by its owner, it becomes necessary to very carefully explore the property condition prior to a purchase. A realtor would definitely do this prior to offering to sell the home. With the absence of a realtor, this burden will fall on the shoulders of the buyer. Actually, it shouldn’t be considered a burden as much as a form of due diligence. You absolutely need to know the condition of a home prior to purchasing it so you can avoid any unwelcome surprises later on.
If you do not find any obvious flaws in the property and you are seriously considering purchasing the home, it would be best to hire a property inspector to perform a complete inspection. You may be saying “Why should I do this when I already inspected the property?” Because a trained eye can definitely pick up on problems an untrained eye cannot. So, consider hiring an inspection an additional (helpful) $300 investment.
Try and find out why the owner is selling the home. If the property may be headed into foreclosure soon, you may be able to make a great deal. Distressed homeowners may be in need of a quick cash infusion so they could be willing to make an exceptional deal. However, you won’t know unless you ask.
Conversely, the owner may be putting a home up for sale by themselves because they may have a fixed price they wish to sell the home and they are not going to change the price at all. If you do not want to deal with an inflexible seller, then this type of homeowner is best avoided.
Clearly ascertain the seriousness of the seller. Be wary of a lack of seriousness on the part of the seller. Sometimes, an owner could simply place a house on the market just to see how strong the interest is. While there is nothing inherently wrong with this plan, it could end up wasting the buyer’s time when the seller is not really looking to sell.
Sometimes, it is possible to get a great deal on a home that is sold by its owner. However, there may be some complexities associated with such a purchase as well. Being aware of these complexities can make a sale a lot easier to deal with.
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