@Anonymous wrote:
@pipeguy wrote:
Generally this is known as a "private sale" and it's easy enough using a lawyer based settlement ccompany/service. You will want to hire personally a good inspector who can check out all the major house systems - inclunding roof and foundation and if problems are found you can either walk away, have the seller correct the issue or get a price break to cover the cost of repairs.
I just recently sold a house "private sale" to a willing buyer, mainly for the land, but "as is" - we signed a standard state approved contract and we'll settle in July at a settlement attorney - service that does this full time. If you want to CYA, hire your own attorney, but I will say that I've bought 5 real estate properties, sold 7 properties and never hired my own attorney. On a private sale/purchase I might, or I'd purchase a "10 year Home Owner's Warranty" which settlement agents are only too happy to sell you. On a private sale, a real estate agent does nothing for you that you either can't do yourself or you can't do through a "flat rate" Real Estate Attorney a lot cheaper.
This is helpful, is there a guide/book on steps I should take as the buyer? I'm a pretty smart, process oriented guy so I'm more worried about cost than complexity
I don't know if there is a "Real Estate for Dummies" in print, but you don't need it. Find a Real Estate attorney - many of them have their own settlement services and talk to them about their costs. Generally it's the seller that will set up settlement (place and agency) and if the seller has no preferance, you can find one that worls for both of you. Most standard real estate settlenments have certian items that the seller pays and certian normal items the buyer pays - other costs have to do with your lender such as PMI, title search,Homeowners insurance paid in advance and prepaid real estate taxes the seller has already paid. Many lenders offer settlement services and since lenders want to cover their interests (mainly because they resell the conforming loan the next day) they'll pretty much protect your interests since your interests are their interests. There are government mandated fees, such as deed recording, processing, etc.
#1: go to a local real estate settlement service and tell them you are looking for a place to settle a home you are buying - they'll be happy to spend 10 minutes with you explaining the process aka selling you on using them, but they'll give you a general idea of buyer/seller estimated settlement costs based on the local market (government fees vary) and the value/price of the house/loan. You can also ytalk to the seller and say "since this is a private sale and you are saving $10,000 in selling commission (generally 6% of the selling price, but it can vary) - it would help me out a lot and help talk my spouse into THIS house if you could cover $2000 in my closing costs" - Most sellers are not going to toss a sale for $2000 and they don't think of the $2k as a discount as much as a selling point aka closing costs.
#2: Make SURE you hires your OWN inspector and while it'll cost you a bit more get the "detailed" inspection which takers hours - well spent money. Oh, and OPT IN for buyers title insurance (seller has to pay for this, buyer has no coverage unless you ask for it and it costs next to nothing since the seller has already paid the actual premium)
#3: Make the sale contingent on getting your loan - this is standard on a regular contract, a private seller might push back on this, but you can add a sweetner if they push back - offer a $500/$1000 penality if you fail to get your loan within say 45 days (usually 30, but ask for 45).
