Where can I get information on buying a home directly from the owner and not having a realtor?

Question

We are living in a home that we have rented for 4 years and the landlord is willing to sell us the home. We have got financing on our own but now we are struggling to figure out all the different loan offers and also what to do with the whole negotiation process. The house definitly needs work and we either want them to do the work or cut us a deal. We are first time home buyers and are trying to do this with hardly any out of pocket expense.
Thanks,
Polly

Answer 1

A house is usually the largest and most valuable asset a person has. You should not do anything without expert help. I have seen too many people on the site screaming for help after they get into trouble. But then, it is too late. Yes you can save a few buck here by not using an agent and there may be a way. The following is what I suggest...

1. Fine a real estate agent (someone that has been around a few years). Tell him your are about to buy this house you are living in directly. Offer him a few hundred bucks just to advise you about all the fine points of the contract, especially the fine prints such as financial contingencies, inspection clause, time is of the essence, defaults and all that good stuff. For a few hundred bucks, you saved thousand and may get some professional help.

2. Make sure you have a real estate attorney to review the contract before you sign it.

3. Talk to your bank and get all your estimated cost accounted for, not just the mortgage payment. have a detail list of it before getting into contract because you do not want to get caught short at the closing table.

Answer 2

If you make a loan at any finance or morgtage co., they will have it appraised and take into consideration the needed repairs.
Their loan will be based on the appraised value.
If you can negotiate with the owner for less than the asking price, equal to or less than the appraisal, so much the better for you.

If you plan to do the repairs yourself, you should at least consider the cost of materials. If repairs must be done by outside labor, get some estimates so that you know where you are with the price.

If you can arrive at a reasonable and fair price, maybe the owner will carry the note for a time, without any out of pocket cash. Usually this is done for 2-3 years and then you may have to arrange financing through a morgtage co. for the principal balance.
This is done by calculating the morgtage over a reasonable time, maybe 15-20 years in order to arrive at a fair monthly payment with interest, for the time that the owner carries the note.

This would give you time to improve the property and your morgtage would be less than the appraisal.

Answer 3

First, get a very basic purchase and sale agreement. They sell them at office depot and some other office supply stores. Study it and figure out what things you dont know how to answer and get those questions answered specifically, if need be.

Second, do a home inspection. These cancost as much as $400, but you will be able to PROVe those things that need to be fixed. For big ticket items, get a contracter estimate or atleast a materials estimate at home depot.

Third, print out some homes that are similar in size and condition from online, or visit www.zillow.com and see if you can get a property estimate there. FYI, for my area Zillow always seems just a little bit low.

Fourth, bring your list of repairs to the seller and give him two prices: the "You fix everything" price and the "as-is" price. I'm betting he takes as-is.

Then you guys sign a purcahse & sale and you put a token amount like $1000 plus with an escrow/title company. You also give the sales price information to the bank along with a copy of the P&S. But DO NOT list the repairs in the P&S unless they are to be done prior to closing--someitmes banks make you fix really dumb things if htey know about them.

The title company will contact the bank and get all the info you need to sign, as well as be in contact with the sellera bout any outstanding mortgages, etc.

It will take about 30 days for you to close on the house and a couple days before closing you go in and sign everything. On closing day the landlord gets his check and you get your keys/deed.

Also, FYI, mortgage payments dont usually kick in for 30 days or so. :-)

Answer 4

i understand that vendors opt to sell a house at what they sense they placed into it 10 years or extra previous yet that stuff has already completely depreciated. a lot of them sell from the emotional area (we had maximum of great situations in this abode and so will you so we are increasing it with the aid of $10,000). specially situations they have not paid their taxes or something is incorrect with the call so with the aid of smiling they think of the customer will forget those issues (and correctly they do after which there are criminal battles and costs to beat). From back as quickly as I can remember getting into genuine assets i've got understood that the broker pays the value. once you hire a realtor you recognize that they are state authorized, understand what they're doing from journey, understand that they've their place of work backing them (incredibly their broking provider) and that they are able to ask their broking provider or yet another realtor in the event that they do no longer understand an answer on your question. And a realtor belongs to a company which has on artwork tension an lawyer they are able to ask questions of. A realtor or genuine assets agent (comparable element different than one belongs to a company and the different does not) the two have the comparable practise and contacts and characteristic a catalogue of issues they are going to do which includes checking the call. Ask them any question and that they provides you with a rapidly answer. once you bypass to purchase a house you want a RE agent and the broker needs a RE agent as properly. Yours will propose you, theirs will propose them.

Answer 5

The very reasons you listed are why you need someone representing you.