It happens more than you think; someone hears from a friend that a home they’ve always liked might be going up for sale. Or someone mentions tells someone that if they ever consider selling their home they would be interested. This is how many off the market sales get started. The next thing for both parties is to determine exactly how serious the other side is and where do they go from there. This type of sale can be beneficial for both sides; but sometimes parties may get a little too excited and begin the process without proper consideration.
In this type of deal the first thing that needs to be considered is whether both parties are serious. This is the time when buyers need to determine whether the seller is really ready to sell their home. Sellers also need to use this time to determine whether the buyer was serious when they made the offer. This is the time of deal where both sides need to open the channels of communication and decide where they stand.
Once both parties have determined that a deal can be worked out, the next step is to agree on a price. This can often be the trickiest part of a deal being done off the market. In some cases deals can fall apart over a few thousand dollars. If this happens to your deal there are many things that you can do to help keep the deal on track. Both sides may choose to have appraisals done on the property to determine a fair market value for the home. If the appraisals come up with different values, the two parties can decide to split the difference.
This type of deal appeals to many sellers because there are no commissions involved. This means that the seller will not have to pay an agent for their services and all of the money that is made on the sale goes directly to the seller. Although, in some cases it might be wise to bring in a real estate agent; but it is not required to complete the sale. The decision to bring in an agent is up to each party involved; there are both pros and cons, ultimately the decision is up to the buyer and seller of the property.
After both sides have agreed on a price, the next step is to decide whether or not an attorney or escrow company needs to be hired. If the deal is moving along problem free, and there were no major problems discovered during the inspection process it may be time to consider hiring either an attorney or an escrow company that can help close the deal for their normal hourly fee. By involving either of these parties, it will ensure that the deal is completed in the proper manner.
If you decide to sell or purchase a home in this manner, it is important that you ensure the deal is completed in the proper manner. It is important that you protect yourself both legally and financially when participating in this type of sale. If you begin to have doubts about the deal or you begin to feel that things may be moving too fast, it may be time to bring in a professional.