Simon Says – Strategies To Buy For-Sale-By-Owner Properties
Strategies To Buy For-Sale-By-Owner Properties
Question: We have been looking for property for quite a while and have found a “for-sale-by-owner” that might be right for us. We are a bit lost as to how to begin the process. Every other time that we have bought a house it has been listed with a Broker. Any suggestions that you could make would truly be appreciated. BL
Answer: You have a couple of different options. There are two different approaches that you can take:
1. You can hire a knowledgeable, experienced, smart, broker to represent you in the transaction. Establish a signed contract with this broker spelling out exactly what he/she will be doing for you and the amount that you will be compensating them when the property closes. This way you are sure that all of your legal issues are covered as well as your need to be sure that you are buying the property at a good price. Be sure that you choose a broker who is smart with good negotiating skills as well as a good working knowledge of the area that the property is located in – all of these skills can make a big difference in your outcome.
2. You can choose to go forward on your own without a broker; you will need to do the following:
a. Visit the town hall in the town where the property is located and meet with the Code Enforcement Officer about the property to ensure that the property meets all local and state codes.
b. At the town hall, visit the Assessor’s Office and research what other properties that are similar to the one you want to purchase have sold for in the last twelve months; this will help you establish the true value of the property.
c. Locate a good home inspector. Choose someone who comes well-recommended.
d. Locate a good attorney who can represent your interest and write your offer for you to present to the seller. Make sure that you have an accurate time schedule for all the aspects of your contract that must be met.
Either way that you choose to go, good luck! RS