Has anyone ever purchased a house directly from the owner without the help of a real estate agent?

Question

I am thinking about buying a house directly from the owner without a real estate agent's involvement. I know the house and what has been done (it has been totally updated). Other than a home inspection being performed, which is a good idea, has anyone else ever bought a house like this?

Answer 1

I did actually and it was my first home, so I had no clue!! Our mortgage company actually helped us out soo much. They knew exactly what we needed about everything. They can help you out!

Answer 2

This happens very often. The term is called FSBO (For Sale By Owner). An agent's or Broker's role is to smooth the process and present all potential issues. With research, anyone can buy or sell a home. Once you and the owner come to terms on a sales price, there are other issues to consider.

1. Termite report is the utmost in your priority list. Any repairs are traditionally paid by the seller.
2. Home inspection is a good idea and has become the fad of today, but the cost is usually picked up by the buyer. Do some research on the Home Inspector, as some are questionable at best.
3. You CAN request points and other costs for the new financing to be paid by the seller. This can be either built into the cost of the new home or negotiated before the final price is decided.
4. An appraiser will have to be chosen. In most cases, the new lender will have a list and will commission his employment.

Once all these matters are confronted, your next step will be to contact an Escrow Company. There are some escrow companies who will not handle FSBO's, but the market is changing, so you shouldn't have any problem. A good escrow officer will guide you through the entire process. Both buyer and seller pay their costs. The role of an escrow company is to act as a mutual 3rd party/attorney. They make sure all terms of the contract are met and set up signing new loan documents and hire a Title Insurance Company, who in turn assures you that you will have "clear title" once the transaction is complete. This is a very vital part of the entire process, as a "cloud in title" can jeopardize your future ownership interest; they will "insure" against any future claims against the property that you were NOT a party to. The choice of Escrow Companies is shared, but I would suggest you pick one.

Answer 3

I did. I was able to resource a local title company for all the documents and advice as needed. They also have an in house attorney. The transaction was quite simple and not too stressful. The main idea is to write a contract detailing everything that is included or not included e.g refrigerator and other appliances. Also, detail any work that needs to be done like fixing the sprinkler system or painting. this should be a start. Good luck.

Answer 4

WHY DON'T YOU JUST JUMP OFF A CLIFF? It is faster and easier. Really. DON'T DO IT. DON'T DO IT. At the very least, SEE A LAWYER. There IS paperwork. If the owner tells you there is not, he/she could be a crook. There could be unforeseen problems with the property. Since he or she still has name on the title, the owner could sell it again. One day, another "owner" could kick you out without your knowing what that the original owner did this............The problems go on and on and on and on.........SEE A REAL ESTATE LAWYER and tell the lawyer your plans. The first meeting is free. You could end up making payments and never get the house twenty or thirty years from now. THE "SELLER" COULD SC*W YOU BIG TIME. Please, at least see a lawyer and get some guidance. Your money is at stake. Your feelings and pride are at stake. I am telling you. If you don't listen to me, you might one day regret it and be devastated financially.

Answer 5

I have and if you are willing to do the leg work you can save a bundle.. but if you don't do it right you can get stung. You have to go the county office for records, leins, deeds, etc... Research any possible leins, 2nd mortages, etc. Holds on the deed, of any kind, is a deal breaker. Also check the planning commission to be sure the city isn't going to build a road thru your front door. Also you need to know about the zoning requirements and you need someone who knows "legaleze " to read your contract...generally, the bank lending will cover that part with you, it's to their advantage to make sure they are making a safe loan.... then again, you may want to spend the money for a RE agent...

Answer 6

Yes, the title/Escrow company can help you. Use one that knows the details and has experienced staff. The forms etc.. can be checked by an attorney or a realtor for a flat fee. In Florida we have some info on http://capecoralinvestors.com.