Things You Need to Know Before Purchasing a House from a Private Owner

Purchasing a home is one of the most important purchases you will make in your adult life. It is also likely to be the most expensive, and one that will require a personal loan. Therefore, it is vital that you do some research and make sure you do not regret your investment.

Know the Process

When you purchase home, you want to make sure you understand everything there is about the process and how to prevent extra fees. Prior to purchasing, whether it is with a private owner or through a dealer, you will want to visit the Department of Housing and Urban Development to read through their massive amount of resources available. In addition, make sure you save at least 20-percent so you avoid the additional insurance fee.

Beware of Homes Needing Work

You need to be sure that the home is worth the investment, so if there are a lot of work necessary, it may be something you want to avoid. Most homes that require work have a lot of hidden problems that you may not discover until you start the renovation. If you do want to purchase a home that needs work, make sure you get a full inspection performed prior to purchase and have them look specifically at the foundation, basement, and electrical system. In addition, try to schedule the inspection so it falls after a rainstorm so it is easier to spot any trouble spots.

Get the History

When you are purchasing a home from the private owner, you want to make sure you have the full story on the home. The positive side of purchasing from a private owner is you can find out immediately how long the house has been on the market and what the neighbourhood is like. However, the downside is they may not know the price is fair for the neighbourhood, or what the history of the home was prior to their purchase.

Get Pre-Approved

Many real estate offices have the ability to get you approved for a loan prior to purchasing a home. However, when you purchase from a private owner, you will need to get pre-approved for a loan, such as When you start searching for a home, owners are going to want to make sure you can afford to complete the purchase and they are not wasting their time showing the home. Sellers are also less likely to negotiate like a real estate agent will, so make sure you know what your budget is and stay below that budget.

Finally, make sure you take your time when you are purchasing a home. This is true regardless of whether you are going with a realtor or a private owner. In addition, consider consulting with a lawyer to go over the contracts with you so you make sure you are knowing what you are getting into. They are also going to know the tax laws to help you in negotiations.