The List Price Should Be Lower
Assuming that you decide to have a real estate agent help you during the home buying process, that person should be able to point this out during negotiations. However, your ability to pay less than list price will depend on how many offers have been made on the house, and the sellers motivation. Plus whether you are buying in a buyer’s market or in a seller’s market. What you offer may also depend on how much you like the home and whether the seller may offer other concessions. See also: First Time Home Buyer Mistakes
Private Sales Homes May Have Issues
Before you buy any home, make sure that you have a thorough inspection done. If there are mould issues, a pest infestation or problems with components such as the roof, ask if the seller is willing to fix those issues for you. It may also be possible to ask if the seller will give you a price discount to help you pay for those repairs. Even if the seller declines to offer any assistance, the home may still be worth buying if you get a good price.
The Seller May Not Be As Responsive to Your Needs
If you decide to make an offer on a home that is for sale by owner, that person may or may not be willing to work with you when it comes to making fixes or otherwise offering concessions. In most cases, a selling agent will advise a seller to make minor changes or may even help pay for them on his or her own. The owner may take a more hardline stance or simply not fully understand how the selling process is supposed to work in respect to working with a buyer.
The Seller May Not Understand How to Complete the Transaction
Those who don’t have any experience in the real estate field or in selling their own homes may make one or more mistakes. This could prevent you from closing on your home in a timely manner. This in turn could have ramifications if you need to be out of your home or apartment by a certain date. Banks may also be wary of making a loan if they can’t be sure that the transaction will go through properly.
Private Sales Homes May Not Get Many Offers
However, a single post or two on Facebook or through Twitter is generally not enough to get many people to express interest in a property. A real estate agent typically has a targeted email list of thousands of people. A professional agent has many avenues of marketing which reach farther than any private sales efforts can do.
While this may be an issue for the owner, this is the perfect opportunity to get a great deal on a home that you can live in for years to come. A lot depends on how much the owner expects to get. It may be possible to buy a home with the intent of flipping it. Or using it as a rental for the time being.
Watch Out for Issues From Lenders
In some cases, the lender may be able to repossess the property before your transaction closes or make the closing more complicated that you would want it to be. If you have a real estate agent, he or she will mention this. He will make it something that you are aware of before you make an offer or before you actually close on the transaction.
Buying a home directly from the owner can work. However, it can also make it more complicated if the seller doesn’t know what he or she is doing during the closing process. Ideally, you will have a real estate agent of your own and conduct due diligence before making an offer or signing any paperwork making you the new owner of any property.
About the Publisher
Bo Kauffmann is a residential real estate agent with over 18 yrs experience in helping buyers and sellers achieve their goals. Inducted into the REMAX Hall of Fame in 2010 and receiving the REMAX Lifetime Achievement Award in 2019, Bo has sold over 500 houses and condos in the Greater Winnipeg market. He is an accredited buyer representative (A.B.R.) and a Luxury Home Marketing Specialist. Bo provides exceptional service to First-Time Home-Buyers, Seniors looking to downsize and Home Sellers of all ages. He can be reached easily By E-Mail or call/text him Call/Text Here Never miss an episode of our real estate podcast. Install our FREE Podcast App available on iOS and Android. For your Apple Devices, click here to install our iOS App. For your Android Devices, click here to install our Android App. Check my videos on Youtube