Steps to Buy a House From a Private Party

You can choose to buy a house directly from its owner and skip the broker middleman.

There are many methods of buying a house. The most common is the arrangement in which you buy a house through a real estate agent who goes through the entire process and all you need to do is release the money for payment. But there is the option of buying a house directly from a private party. One of the advantages of this method is that you are in control of the price negotiation process and you can save on agency fees. However, to buy a house from a private party, you need to be knowledgeable on all the necessary steps.

Instructions

1. Choose a state where you want to buy a house and zero in on the city of your choice. Search for advertisements for houses on sale. You can search for these advertisements on the Internet and on newspaper advertisements. Call the owners of several houses over the phone or write them emails to discuss the details of the house and the sale price. Filter various offers in terms of price and house specifications and decide on the house you want to buy. Visit the house and carry out a physical inspection. Ensure that all your specifications are met. Negotiate with the owner on the price and reach an agreement.

2. Hire a home inspector to make sure that the house is priced within the market range and that it is free from defects.

3. Contact your bank to discuss financing if you do not have saved cash. Hire a real estate lawyer to prepare the sale agreement so that you can have a legal document to protect your interest in the deal. Ensure that you understand everything that is written in the agreement. If you have any questions, ask the lawyer for explanation.

4. Open an escrow account and deposit the money equivalent to the purchase price as a guarantee to the seller that money is available to pay for the house when all the paperwork is finalized.

5. Sign the purchase agreement and all the documents that require your signature to change title ownership to you.

6. Release the money to the seller from the escrow account when the process of change of title to your name is finalized.

7. Move into the house or rent it out.

References

• Heartland Home Inspections: Home Inspections-why?
• For Sale by Owner: A Buyer's Guide to Buying a Home