Houses for Sale by Owner

INSPECTOR!!!

Other than that... I know plenty of people that got GREAT homes that were for sale by owner.

Usually the case is that they don't want to have to pay a Real Estate Agent.

Make sure you get a disclosure and do an inspection of the property. This way if anything turns up later, you have the disclosure to show what issues the house has had ,and the inspection to let you know what could or did happen if there are defects. A for sale by owner can be a great experience if you are careful. And it leaves more room for negotiation since the owner is not paying 3 to 5 % of the sale to a realtor.

I personally have not bought a house FSBO - however, I have looked at houses that are...Just like with any house sale...

I would have an agent - personally - there is so much legal jargon, I'd rather be safe than sorry...

i would have a home inspection done. Ensure that there are no major deficiencies with the home...

i would ensure that an appraisal has been done and is current....making it comparable to those in the neighborhood.

make sure it's the house for you - is it the right size for now and later? can you grow into it or will you be growing out of it too quickly?

go to the neighborhood in morning, afternoon and night - all different times...check with the police to see if the neighborhood has crime, is it in the school district i want? have i checked the ratings of the schools to ensure it's what I want for my kids?

hope that helps!

We did. Get a good closing company and it will save you a lot of the "legwork, as they can provide an attorney, title searches, etc.

Definitely get a private home inspection.But with a good closing company--no jargon, no lurking dangers. Easy peasy.

Put something in your offer like "if the home inspection finds something >$2000, seller must cover, if <$2000 buyer assumes liability", etc.

You could get your own real estate agent (buyer's agent) and let them deal with everything and walk you through the process.

My first home was bought by the owner. I was very lucky in that I had a good friend that was a former real estate agent. She gave me all the forms and walked me through the entire process. If you have a friend like that, call in a favor! We had no problems with our sale. The woman we bought the house from was very forthcoming in disclosing any information we needed. However, all people may not be that way. My advice is the same as the others here, do all the inspections you can. Also, attorneys and home inspectors are easily found by word of mouth. However, some attorneys cost more than others for the same service. Call around about that, and save yourself some money.

We bought our house that way. When we went in for the loan our banker did all of the paper work that needed done. We spent like $200 total. We didn't get an inspection done because the house was from my ex mother in law. But now we wish we would have! There is SO much that I didn't know about and would have liked the heads up on instead of just her word!

We bought a house for sale by owner house. My biggest suggestion is to TAKE YOUR TIME going through their home. Don't let THEM lead the tour, because they might whisk you thru their problem-areas, when, really, you should be taking your time.

Walk all around the room, listen for creaks in the floors
Test all faucets and drains
Ask for them to show you their utility bills for the past year so you can check on heating and cooling costs
Open and close the windows
Open the cabinets and drawers
Put your hands by the windows to feel for drafts
Look for obvious cosmetic issues that you can use in your negotiation
If they have done DIY work with electrical or plumbing, as to see their permits

ETA: Do all this BEFORE making an offer. After your offer you will have to get an inspection done (do NOT go with an inspector recommended by a realtor, as I view that as a huge conflict of interest.)

Act like a home inspector and try not to let them use emotion to sway you. I'm such a softie that when the wife was telling me about how her kids played in the backyard, I couldn't help but picture my own (unborn) kids out there too. Dumb. I should have remained objective. We have so many issues with our home!!

Yes to both. When we bought, we asked them to complete a real disclosure sheet, the same ones the realtors use. You can print one or ask a realtor for one IF you are friends. We had a home inspection and the inspector questioned them about things on the disclosure. We got an appraisal of the home's value from a realtor, but did not pay as the owner refused to deal with realtors anymore. He used a title agency and closed like always.
It was weird because the owner followed us all around the house, like we were criminals. He was also pushy and aggressive so we told him we had the CASH but were not going to buy it because of something he didn't disclose and his pushiness. Two weeks later we realized it was the only 4 BR house available so we bought it. You need to take photos of all appliances in the house so they don't switch them out after you buy it.
We know someone this happened to.

When we sold, we found out what it was worth from realtors, then listed it at full price. We wanted good people because the house was next to my family's house. We used forms off the internet, he paid cash, and we went to the courthouse to record the sale.

In 2006, we sold our home by ourselves. It went very smoothly and the only thing we had to pay for was a real estate lawyer to draw up a purchase agreement. It only cost $150.00. Often FSBO homes can be much more affordable because the sellers don't have to pay a commission to anyone so they will cut you a good deal. We had some people look at our house that were strictly only looking at FSBO and didn't want an agent involved. We sold our home in 1 1/2 weeks and made a killing on it :)