BUYING A FOR SALE BY OWNER HOME  
   
Written by Susan Wilcox

[ disclaimer ]


FINDING YOUR HOME
Now back to the fun part. Looking for a new home is the ultimate shopping trip. But before you buckle the baby in the car seat, take a little time to figure out where you're going! If you've lived in your area for awhile, you'll already have a good idea of which neighborhoods are most appealing to you. If you're moving to a new city, you can find information about schools, shopping, crime, etc., on-line that will help you determine which neighborhoods will suit you best.

Not all homes are created equal! A 2,000 square foot, 3-bedroom, 3-bathroom home in one neighborhood may sell for much more in another neighborhood. So finding the right neighborhood is a balance between price and lifestyle considerations.

There's another balance you might have to find: the one between your wants and your needs. This is the most likely area for a reality gap to emerge. We might all want a 3,000 square foot villa on a lake, but do we actually need it?

An effective exercise is to sit down with a piece of paper. Draw a line down the middle to create two columns. On the left, write down everything you want in a house. Then go through the list. Which of these do you actually need? Write those on the right side. That's where to start – your basic home. Anything else is an amenity, and if you can get it great! But if you can't, you'll still land in a home that will comfortably meet your needs.

Now, to find that home! We recommend that you start right here at MichiganEhomes.com! Input your price range and requirements – number of bedrooms & bathrooms – and you'll get a list of homes available to you. This will help you to identify affordable neighborhoods and what kind of home your money will buy there!

Or, if you already know the neighborhood you want, you can input a zip code to see what's available there.

You may also want to expand your search. Other places to look are:
• Newspaper ads.
• "For Sale by Owner" magazines.
• Other internet sites.
• Open Houses
• A real estate agent.

A few words about using an agent, or more specifically, a buyers agent. They can be helpful in locating properties that are just right for you. And, often, this service is free to you; the seller pays the commission. However, there is more to the story.

Usually, the listing agent offers half of their commission to the buyer's agent who brings in a successful buyer. But what happens if the home is 'For Sale by Owner' and there is no listing agent? If you read the buyers agency agreement carefully, you will almost always find that YOU are responsible for paying the commission (usually 3% of the sales price) if they don't get it from the listing agent or the sellers themselves. So, if you've signed a buyers agency agreement and find a home "for sale by owner" – even if you find it on your own – you are obligated to pay your agent's commission. That’s why it’s a good idea to exhaust any ‘For Sale by Owner’ options before you hire a buyers agent.

Of course, it's a good idea to have someone on your side who knows the ropes. Your mortgage broker and title company can answer many of your questions (more about title companies below). Hiring a real estate attorney to look over contracts and advise you through any complications that arise is always an option. While attorney's are not free, they cost far less than an agent's commission!

Now, back to finding your home. You have one more decision to make: Are you looking for something that is in "move-in" condition or do you plan to fix things up to your liking?

If you want one that is ready to move into, look for homes that are advertised as "recently upgraded," "turnkey condition," "recently painted and carpeted – just move in!"

On the other hand, if you like the process of morphing a home to your vision, you'll have more homes from which to choose. The challenge here is to envision yourself in someone else's house, looking past other people's taste and housekeeping standards to find the diamond in the rough. You want to completely disregard the smell of tobacco and the fuchsia dining room wallpaper to picture what it will look like once you've done your own personal makeover.

As you walk through a home, be sure to ask questions such as:
• When was it built?
• How old is the roof?
• How old are the heating & A/C systems?
• Why are you moving? (The answer may be enlightening.)
• What are the neighbors like?
• How much traffic goes by?
• Is there a homeowner's association? What are the dues? How strictly do they enforce their rules?

You get the idea. Ask about anything that may become a future repair bill or an annoyance once you are living there.

Eventually, you will find a home you want to buy. Then it's time to make an offer.



    
     

 


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