FOR SALE BY OWNER --  Are you really saving time and money by not using a Realtor?  Before you consider either selling or buying privately make sure you educate yourself on all aspects of a sale/purchase. I'm not saying you shouldn't do it yourself but make sure all parties are protected as this is a legal contract.

 

- Is the home priced right?

 

- Do you know how to write a proper purchase contract with proper subjects? (Financing, inspection, appraisal, deposit, for example)

 

- Do you know where to obtain the forms you need to write an offer?

 

- Do you know how to handle the deposit? When it's payable, is it refundable....?

 

- Do you realize you need to have a lawyer involved?  Both Buyer and Seller need to book their own lawyers to handle the transaction.

 

- If you are the buyer do you know you should have your financing figured out before writing an offer?

 

- Do you know how long to set completion/possession dates for from date of contract?

 

- Did you realize that 99% of the time an appraisal will be asked for on a private sale?

 

- If you are the Seller do you realize you need to disclose the history of your house to the Buyer?

 

- Do you realize that all the documents are time sensitive and need to be transferred between the seller, the buyer, the lender & the lawyer?  A Realtor usually makes sure all documents are correct before submitting to the lawyer once subjects are removed but that would your job as the seller/buyer.

 

-Your lender will approve your financing and mortgage instructions will be sent to your lawyer but all other paper work including the contract, addendum's and any other info will be your responsibility to make sure are received on time for your completion date at the lawyer's office.  Do not expect your lender or your lawyer to do this for you, this will now be the job of the buyer or the seller to make sure all is in order. 

 

When you do a private sale it takes a lot more of your personal time to get everything done.  Make sure you are ready for any little hiccups that may come up whether it is dealing with something that shows up when inspection is done or there is a delay because an appraisal is called for.

 

As a mortgage specialist I can help you with any mortgage questions but if you bring me a private deal and you need assistance with how to write your contract to purchase I'll either refer you to your lawyer or to a licenced Realtor.