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Buying
FSBO
Whether
buying directly from an owner or not, having a plan is a good idea.
Determining what features you want or must have, and how much you can
afford to spend is a good place to start. Unless you are paying cash,
strongly consider being pre-qualified by a lender before
looking at any property.
There can be several advantages
to buying property directly from the owner. One major benefit is they
will know more about the property than anyone else. It is not difficult
to buy "for sale by owner" property, but it is important that
you seek the right guidance to ensure a smooth transaction. For professional
help please refer to real
estate services.
To make an offer, you may ask the owner for an
offer form, or check out our Real
Estate Forms provided on this site. This is a legal form you use
to offer a purchase price and also describe the contingencies of the
sale. Contingencies include such items as obtaining financing, having
the home inspected, selling another house, etc. This is a standard legal
form used in almost every home sale, but you need to read it carefully
and fill it out completely. You'll also receive a "Real Estate
Condition Report" which provides you with property details. (This
report will be provided to you by the seller.)
Return the offer and an earnest money check to the seller. Earnest money
represents your good faith in going through with the deal. At closing,
the earnest money amount will be credited you. If the contingencies
identified in your offer to purchase are not met, you will get your
money back. But you will not get the money back simply because you've
had a change of heart.
If necessary, a counter-offer will be made. Sometimes, counter offers
are countered as well. Both the offer and counter-offers spell out the
various conditions of the sale, and must be adhered to. The contingencies
have deadline dates. Neither party can ignore the deadlines. If there's
a problem in meeting one, however, both parties can agree to an extension.
The contingencies are removed by filling out a legal form describing
the action that's been taken. For example, once you obtain financing,
that contingency is satisfied.
Shop around for a mortgage. For a list of area Lenders
check out those listed on our website. Proof of homeowner's insurance
will also need to be provided to your lender at closing. Your insurance
agent will have the proper forms. (Comparison shop for insurance,
too!)
If your offer is subject to an inspection, you, the buyer, are responsible
for making the arrangements and paying for the inspection at inspection
time. A list of area home
inspectors can be found on our site as well.
The owner will make the arrangements with their attorney or a title
company for closing the transaction.
Remember, no one knows more about the house than the owner. Buying from
the owner gives you the chance to ask questions directly.
All content on sheboyganbyowner.com is subject to the Federal
Fair Housing Act.
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