Buying a home is one of the most important investments you will ever make but there are some risks that come with this reward. If you plan on buying a home that is a For Sale by Owner, you need to be prepared to handle some of the work a real estate agent would usually help you with. Use these three tips to protect yourself during this process.
Do Your Research
If you’re planning on living in this home for the foreseeable future, you want to make sure this investment is your dream home instead of a neighborhood nightmare. Compare property values in the area to see how your potential new home stacks up. The homeowner may set the price at an arbitrary number but there are tools out there that can justify your counteroffer.
Get A C.L.U.E.
You wouldn’t buy a car without the pink slip and you shouldn’t invest in real estate without a full review. Make sure the seller provides you with proper documentation like a Comprehensive Loss Underwriting Exchange, or C.L.U.E. report. These reports cost less than $20 and can show you a seven-year history of insurance claims that have been filed for a particular property. This breakdown can give insight into a potentially higher insurance rate for the home and any reoccurring issues.
Review the Agreement with an Attorney
With a purchase this big, you need to know the sale is legally sound. An experienced real estate attorney can ensure your purchase contract contains the proper language and disclosures to protect you if problems arise during the appraisal, home inspection, or other issues that could taint the title of the home. Your attorney can also work with the seller to determine who pays certain costs like title transfer fees, transfer taxes, and more. You may have an eye for abode but the right attorney will have the expertise to prevent financial heartache.
Our lawyers can protect you from financial risk and potential liability by informing you what the law says about your own obligations as well as the other party’s responsibilities. To learn more about the scope of Heritage Law LLP’s real estate practice, contact us for a free consultation.