Challenges Of Buying A House Listed For Sale By Owner

Most homeowners hire real estate agents to help them sell their homes, but there are some people that sell their homes without an agent. If you find a home that is for sale by owner, you might want to know the challenges of buying a house that is for sale without an agent. Here are some of the top challenges you face when doing this.

You will not have help with the process

One of the benefits of buying a house that is for sale by owner is that you might be able to get it a little cheaper. The person selling is probably doing it this way to avoid paying a real estate commission. The downside is that you will not have an agent to help you through the home-buying process. You may not know how to handle the sale, the requirements of buying a house, or how to even proceed. Because of this, you may need to hire a real estate attorney to help you through the process.

You may have trouble getting your deposit back if you do not buy the house

If you decide to buy the house you are looking at, the seller will most likely ask you for a deposit. This deposit is often referred to as earnest money, and it is used to hold the house while the buyer gets financing and title work completed. If you decide to back out of the deal, the seller may not agree to give you your money back, and you might experience a lot of difficulties getting it back.

To avoid this, you may need to have your real estate attorney handle the earnest money. This is often referred to as an escrow account, which means that money is held by a third party for a time. In this case, it would be held until you close on the house or back out of the deal for a legitimate reason.

You will have to research values on your own

The other challenge you may encounter is knowing if the price on the house is fair. With most home sales, a real estate agent looks up comps to find out if the house is priced right. Without an agent, you would have to consult an attorney for help with this, unless you knew how to do it on your own.

Buying a house that is listed for sale by owner is not always a bad idea, but it is usually much easier to buy a house that is listed through a real estate agency, such as KoenigRubloff Realty Group - Elmhurst. To learn more, visit a real estate agency today.