Real Estate Bargains

2 Responses to “What Are The Cons Of Buying A House By Owner?”

1. Paul in San Diego on February 14th, 2010 at 10:58 pm

   You have to deal with the owner and not a real estate agent. So, they may have some unrealistic expectations about what the house is worth, what should convey with the property, etc. They also may not be too savvy about the required paperwork, which could lead to all kinds of problems down the road.
   In any case, insist on having your own buyer’s agent. The seller has to pay for that out of the escrow funds (proceeds from the sale), even if it’s just a flat rate fee for doing the paperwork. They know all the things that should go into the offer that are to your advantage, including contingencies and things that sellers typically give back to the buyer. If they balk at that, walk away. I would never purchase a property without the representation of a real estate professional, especially to do all negotiations and paperwork. It’s just not worth the hassle to me as a buyer, especially since the seller is supposed to pay for that.

2. efflandt on February 15th, 2010 at 4:04 am

   Nothing really if you know what you are doing, or hire a competent inspection service so you are aware of any deficiencies, and a real estate attorney to make sure everything is done properly (including your offer with any contingencies, title insurance, and recording the sale/transfer).
   But the seller is likely trying to get as much for the home as it would sell for with broker expenses (more profit), so take that into consideration when negotiating an offer.