I am thingk about buying a house via a for sale buy owner arrangement. Does anyone have any experience with this. Anything to watch out for? Anything I should be looking for or doing? Any help would be appreciated.

I would just make sure you get an attorney to read the agreement before signing and to accompany you to the closing. This is normal practice (even when purchasing through a realtor) and costs around $400.00. Definitely worth the money to guarantee you're not missing something. Good luck!

I would also get a full inspection of the house.

__________________
TLJ ~ Women United in Spirit

EXACTLY what I was going to say. Well worth the $$$ (around $300-$500)

__________________
Proud to say I haven't shopped at a Wal-Mart since Sept 2003

One step further, get the lawyer before you even put in an offer. He/she can advise on what contingencies to put in even the offer to purchase (including home inspection). I think a closing lawyer is more like $600-700 around here, so may vary by location.

cj/

You need a lawyer but keep in mind that lawyers sometimes advise a little too much caution and can kill a good deal. So take a lawyers advice, but use some common sense and try to put yourself in the sellers shoes to see why they are asking what they are asking.

I would also research the going prices for like properties if you can find any and make sure you are not overpaying. Remember that the seller is saving a big chunk by not going with a realtor so you should be entitled to profit somewhat from that also. Figure out what the commission would be and kind of split it and deduct it from what you think you would pay if you went with a realtor listed house. If the sellers are asking what they would get if they used a realtor then that 200,000 house with a realtor probably has an added in commission of from 6 to 7 percent. That, if it is fairly priced, is 12,000 to 14,000 in commission. You should be able to bargain for part of that amount, say 5000 or so.

Ask around for a good home inspector. If the seller says they have just had it done, thank them and ask for a copy then do it again with someone else. Both inspectors may find the same things, but then again, they may not. Ask for a seller paid home insurance policy to help cover any unexpected items that might arise like a suddenly not working hot water heat or a leaky roof.

The main thing....DO NOT fall in love with a residence. Fall in love after you own it if you must. You can not negotiate to your own advantage if you "love" the house. Fall in "like" and realize that there are other choices that are just as nice, if not nicer. And if you can't help falling in love with it...keep it a secret...8-)

depends on the state but we just sold a house like that and we just used for us and the buyer and escrow company and they watch out for both side and they are cheaper and they are also well known with the industry.

We bought our current house FSBO. We hired an attorney to review the contract, cost about $500, a title company did the title search, surveys, etc. We hired our own individual inspectors, in other words we got our friend who was a carpenter and does plumbing inspect the building part, we hired an electrician to inspect the electric, had the gas company out to inspect the gas stuff and light the water heater, furnace, etc (I didn't know they would check everything out for leaks and stuff) we had the gas turned on and left on in our name so we could paint and clean in advance, since it was winter. The seller paid for a termite inspection. The owner gave us keys and free reign to get anything we wanted looked at and to paint and clean before closing. We put $20,000 down. It was 10 days from start to finish and we were moving in, we moved in on Thanksgiving Day. SOOOOO much less stressful than buying through a realtor, when we bought through a realtor I thought I was going to pull my hair out AND it took forever, like 45 days, which seemed like forever because I was pregnant at the time and I wanted to get settled.

I would agree with get an attorney, a title search company does just that a title search, they do work for both sides but if something happens to arise atleast with the attorney you have protection as with the title search co. (abstract co.) you would still have to hire an attorney if problems were to arise. Better safe than sorry right? And around here (PA) the atty. usually costs around $500.00 some are more some are less.

We bought our first home FSBO. It was great, but there are so many things you should know. Definately have an attorney to look over the contract. As far as pricing goes -- realtors generally get 6% which is split by the selling realtor and the buyer's realtor (from what I understand, this can vary from area to area). You will need a home inspector that you can trust and who has a stellar reputation. They will never find everything, but will certainly get you on your way. I like the idea that the previous poster had an electrician, a plumber, the gas co, etc -- pretty smart because they can tell you on the spot what it costs to make the repairs. You can then take their estimates and make an offer based on what work needs to be done or ask for a bottom line amount of cash back at closing for the repairs. Make sure you have a termite inspection -- very important.

I was pretty naive when we did the FSBO, but really lucked out. My best friend is a realtor in another area, so she looked over the contract prior to the attorney. She told me that she had seen some FSBOs go pretty bad, but that we were getting a great deal. We had fired our buyer's agent because she misrepresented herself and her knowledge of the area where we were looking to purchase. We are military and we purchased from another military family so I felt comfortable with the integrity of the other party. The buyer's agent basically told me to to "screw myself", which I told her was preferable to her pushing us into a home in an area we weren't comfortable with. My realtor friend told me that there are good ones and bad ones. A good realtor knows their client, their needs and his/her own capability of meeting those needs. This chick represented herself as a "military specialist" but had absolutey no knowledge of the the bases, posts, commutes, or housing allowances.

We just purchased our second home and I used my realtor friend this time since we were buying in the Nashville area (where she works). Oh my gosh, she was awesome -- treated me as if I were her only client (which she does for everyone) despite the fact that she has many clients. She served as advisor, educator and at times marriage couselor since we were working on a tight schedule. I had no worries with her guidance. She certainly earned her commission in my eyes. I think the FSBO is a great option if you are an educated consumer and have access to an attorney you can trust. Otherwise, I would find a realtor who has a reputation you can trust.