Buying Tips

MSFSBOP will advertise to offer you:

One-Stop shopping for an exclusive list of FSBO properties
The opportunity to buy a home with no commission mark-up
The availability to talk directly with the homeowner

B uying a home or property can be a rewarding experience. There are many on-line and printed resources available for home buyers. Purchasing a home ‘by owner’ is normally very simple.

Here are a few guidelines.

Establish your price range. Decide what you can afford and stick to it. The best place to start is to get pre-qualified from your financial institution so you will know what your price range is. This important step will eliminate the possibility of you wasting your time and the homeowners by looking at homes out of your price range. There are many types of loan options available to you and note that mortgage rates and options vary form one lending institution to another.
Do you have a certain area or school district you want to live in? If so, begin to look and call on homes in these certain areas of town that fit within your price range. Do a drive by or set an appointment to see the property. If for some reason you cannot make the appointment, PLEASE call to cancel and re-schedule.
When you find that perfect home, as a buyer, it is your obligation to make the offer to the seller. Tell the seller that you would like to make a written offer on the home. Include information such as what you would like to remain with the property (appliances, blinds, etc.) . If the seller is not in total agreement with your offer, the seller will make a ‘counter offer’, which will allow for negotiations to continue. Providing you want to ‘buy’ and the seller wants to ‘sell’, you should be able to come to an agreement that will work for both parties.
When presenting an offer, be courteous and respectful of the sellers. In general, avoid criticizing the property to justify a lower offer. This may possibly insult the sellers and decrease your chances of accepting your offer. If you feel the property may be overpriced, and yet the seller refuses a lower offer, make your offer contingent upon the property appraising for the selling price or higher.
The seller is legally bound to be truthful in reporting the property’s condition. Request that the seller complete a property disclosure form, stating the condition of all aspects of the property along with making your offer. You don’t have to worry if your don’t know much about building construction. Your offer can also be contingent upon the property passing a professional home inspection.
If you find the home you want to buy BEFORE you’ve sold your home, and the seller is reluctant to sign a contract with you with the contingency that you sell your home first, you may draw up a contract that allows the seller to continue marketing and advertising the property yet gives you the ‘first right of refusal” should they receive another offer. This way you will be notified immediately if the seller has another offer, giving you an opportunity to re-offer if necessary. Another option would be to put down a non-refundable deposit on the property. This will show the seller that you are serious about buying their property.
When your offer has been accepted by the seller, as well as any other terms that have been defined, you will need to give the seller a deposit. This is called “earnest” money and lets the seller know that you are serious and going forward with the loan in good faith. The amount of deposit will be determined by what the seller is willing to accept. This deposit will go into an escrow account until the final settlement is made at closing.
The loan process begins. You can request to be permitted to walk through the house again (shortly before closing) to make sure that some of the home’s faults weren’t covered by furniture rugs, etc. It is far easier to request compensation for necessary repair work before the house is sold rather than after closing.
When the loan is approved, notify the seller at once. Make any necessary adjustments to closing and possession dates.
An appointment will be set for your closing, where you will sign all documents and finalize the purchase of the property. Remember to ask for the keys!

Buying a Home or Property?