Homes that are for sale by owner’s are usually the property that is in good condition and the seller is usually trying to avoid getting a realtor involved to save money. You will typically see these properties in very good condition and are owned by people that are 50 and older. This can be good from both benefits and terms of costs however, at times when you finalize the transaction you may find that the property you purchase was maybe purchase at a price that was too much or at a price that was a bargain.
When you consider the amount of money you must save you may ask if it is really worth it or not to get a professional involved with the transaction. Typically these realtors will charge anywhere from 1% to 7% of the purchase price of the home. These numbers can really affect the total amount of profit a seller can receive in standard home transaction.
With this being the case it is worth asking yourself if you can just do something between one party and the other. A bank transaction to close the mortgage is about 15 to 30 days depending on the buyer’s credit rating. It is vital and important that their credit is in top notch so that their will not be any causes of cancellation during the contract terms.
Something to think about: When you purchase a home for sale by owner the purchase price shouldn’t never exceed the appraised value of the home. Especially when you are considering buying a home using a mortgage company to finance the transaction. Most banks do not want to take a loss on the property if the collateral isn’t valued correctly. At times they may even ask for a second appraisal or send out their own.
At times some buyer’s can lose their earnest money from the credit or loan not fully being where it needs to be prior to the completion of the purchase. Having two appraisals will cement what the true value of the home is worth. It is always good to have a second opinion, because the value of any property is truly depended upon the opinion of one person versus the next.
You can take advice from a seller or take it from a realtor that works for you. Besides the Realtor is usually supposed to give their expert advice on what he/she thinks during the financial transaction of finding and buying a home. Feel free to give us a call or email us using the contact form, so we can answer all of your questions.