Buying Steps
You've found a home that you like. It's being sold privately; now what?
No one knows a home better than its owner. And the owner is the one that is ultimately setting the price. When you buy a home that's for sale privately, you are talking to the home's expert and dealing directly with the price setter. There is no better situation to be in. There are no competing agent agendas; just you and the home seller.
While Joe Schmoe agents will tell you the process is far more difficult than it really is, knowing what steps to take will allow you to buy that private sale house you're interested in. Take a look at the following checklist and see what point you are at in the process. Pick it up from there, and away you go:
- Get pre-approved for a mortgage by contacting your local bank or mortgage broker. You will be in a much stronger bargaining position if you know your financial ability to handle a new home.
- Find your dream home and contact the homeowner to set up a time to see the house. The internet is one of the best places to find homes for sale.
- Tour the home to see if you like it.
- If you are interested in the house you may need to discuss things with your spouse or partner first. Sometimes a second visit is arranged to have others look at the house with you.
- Start discussing the asking price, what stays with the house, and important timelines such as closing date. We have tools to help you do this.
- If you decide you want to make an offer, you will be dealing directly with the homeowner. You'll want to discuss things such as price, items included, conditions and closing dates. If any of these terms are new to you, contact a real estate lawyer. You will need a lawyer for closing anyway.
- Just because you put an offer in doesn't mean it will be accepted right away; often there is some negotiating involved. Submit proposals back and forth until you reach an agreement or determine there is not an agreement to be made.
- If you and the seller reach an agreement, have your lawyer prepare a formal offer to be present to the seller's lawyer forming the basis of the legal agreement addressing clauses such as financing and property inspection. Your lawyer will also seek any additional disclosures and additions that are deemed necessary.
- When you reach the closing date with all conditions and disclosures satisfied and the transfer of money complete – you've got yourself a new home.
- House warming party (an optional step, but a lot of fun!).