How to Educate Yourself to Purchase a Home For Sale by Owner

As a global economy and civilization, we have come a long way and the world we are living in today is just the realized version of dreams of the past. The rate at which business is shifting can really be a mindful, if we went back just fifty years more than half of today’s fortune 500 companies did not exist. To believe that change is not taking place with any industry is a foolish assumption and real estate is no exception. For nearly a century now we have depended on real estate agents to hold our hands and guide us through the process of buying or selling homes and real estate, it has come to the point where we find it almost impossible to think that it can be done by the owner(s) alone with the help of a few specialized professionals such as; an appraiser, financing organization, home inspector and a title company. When you are talking about a purchase as big as a house, you better get the financials right or you may be in trouble. Here are some steps you may take to ensure a successful experience going it alone and buying direct from the owner.


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    Figure Out What You Can Afford. It is not common for people to be able to just pay cash for a home and so you will most likely have to arrange some financing and that will mean that you should contact your lender and figure out how much you can be pre approved for.
    • In today’s real estate market, many of the attractive homes that become available are sold in the first few days they are on the market and sometimes even sooner. It is truly in the new home owner’s best interest to have a loan pre-approval letter before even starting the home search.
    • In fact, it might be beneficial to submit a copy of your pre-approval letter when you get to the point of actually submitting an offer. It proves to the seller that you are really serious about purchasing the home and that you will have no problems qualifying for a loan. That alone could help you win out over another person who wants to buy the same house.
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    Manage Your House Hunting. There are several ways you can look for your home. One way is to drive around and stop at open houses. This is a good way if you don’t have anything special that you are looking for. More often than not, however, there will be at least one thing that is not what you were interested in with a home. Maybe there is a pool and you would rather have a nice open yard. Maybe there are two bedrooms when you need three. Or maybe the house isn’t even in your price range.
    • There is not much you can tell about the house simply by looking at the outside. The time you spend driving around looking for yard signs can better be used going into houses that actually meet your needs, which is where the internet is replacing the agent in sifting through all the listed properties in your desired area and finding the needle in the haystack so to speak, the perspective homes that meet your desired specifications, or at least most of them.
    • This will involve searching a websites such as zillow or property by owner list which can give you the power of locating many perspective houses at the click of a few buttons, although please note that may of the listings on these websites may be out of date and so you will want to keep that in mind when entering your search criteria and when contacting sellers.
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    Tour The Property In Person. Looking at a house online and in person can be two completely different experiences, for better or for worse. It is recommended that you take the time to consciously think about and distinguish between what you “must have” in a home and what you would “like to have” in a home, life seems to include compromises with each day that passes and finding your home will not be an exception as it will probably involve a few compromises.
    • When looking at a home, you might visit it multiple times before you actually decide to purchase it and that’s fine, you want to make sure that what ever choice you make is truly in your best interest.
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    Understand Negotiations. Once you have found the house(s) you are interested in purchasing, the next step is to negotiate a fair deal for both buyers and sellers.
    • As the buyer, remember that everything is give and take; and in today's tough seller markets, you stand to lose the property to a higher offer if you play the nickel-and-dime game too long. If you really want the property (and can financially afford it), play the cheap card in moderation and give the seller a fair offer.
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    Understand The Closing. In a perfect world, real estate closings would occur overnight, sellers would keep every promise made, and both buyers and sellers would negotiate openly and fairly. Unfortunately, welcome to the real world, closing on a home is probably the most complicated part of the whole real estate ordeal and is the reason why we as consumers always wimp out and give a slick talking real estate agent in our area a little business, this is not needed and will cost you dearly.
    • The closing is your time to make sure that everything checks out with the condition of the property you are going to purchase and finalize your ability to arrange the financing and then meeting on common ground with the seller if any issues are found to modify the sales contract that has been created. Once both buyer and seller is satisfied with the deal, then a title company can arrange the transfer of title from the seller to the buyer in exchange for the agreed upon financial compensation.


  • It will take a little more time and effort, but it will be worth it!
  • If you complete the above steps correctly, then you should own your own home and both you and the seller should be ahead financially, by going it alone without the costly real estate agent!


  • Don't Take Anything For Face Value, Remember The Devil Is In The Details.
  • There Will Be Real Estate Agents Who Try To Skim Your Financial Future, But They Are Not Needed In The 21st Century Economy If You Will Calmly Approach The Task of Buying a Home and Weigh Your Options.

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Categories: Buying Property