I am sure you have seen private listings in various neighborhoods of Thunder Bay. When you call them, you’ll realize the house has been overpriced and has not been bought by anyone for years.
Buying a house from a private seller can be a great way to save money on the home’s purchase price. However, there are some things you should know before you make an offer on the property.
Know the Housing market in Thunder Bay
As a buyer, it is crucial for you to learn the house sales activity in the city for at least six months. Communication is the key. Before giving them the initial offer, compare the price of the house with the other houses in the neighborhood.
After a thorough analysis, give them an initial offer. Usually, sellers give a counter offer considering the following factors.
price—if the seller wants more money than the offer closing date or occupancy
date—if the seller needs more time to move out or home purchase contract
contingencies—for example if the seller does not want to wait for you to sell your current house or wants you to schedule inspections more quickly
You have the option of accepting the seller’s counteroffer, rejecting it, or presenting a counter counteroffer. The talks will continue until a deal or an impasse is reached. If you reach a verbal agreement on a deal, that’s fantastic—but you’re not yet in contract or bound by the deal.
Remember that an offer is a legally binding agreement with numerous details, and this is one time when you must sweat the small stuff. This is where you may need to consult with a real estate attorney.
Get the right papers
Since the real estate broker or a lawyer won’t be there for you to look through the papers, you have to be a bit careful at this step of the process.
You’ll need a home sales contract in case things don’t go as planned. For example, if the house has a lien on it, the bank may refuse to give you a mortgage. You might think that the seller is aware of all of these issues, but you would be surprised to learn that some of them are not.
Other factors
There are so many other factors to consider other than getting a solid contract.
In Ontario, buyers can take legal possession of a property without a survey, but in Alberta, buyers must have a Real Property Report, which is a legal document that shows the location of visible improvements relative to property boundaries. If you do not request one, the buyer will be required to pay $1,000 for the report in order to close the transaction.
Measuring the total square footage
A lot of people are not aware of the fact that they need to measure the total square footage of their house before they sell it. In some cases, people might be surprised to find out that the size of their house is much smaller than what they thought.
This is because a lot of houses are built with false walls and rooms in order to make them look bigger than they actually are. The total square footage can be calculated by adding up all the dimensions on a floor plan and then multiplying it by the number of floors in a house.
Many sellers are unaware that the bottom level of a side-split should not be included in the total square footage because it is living space below grade.
Buyers might end up getting the wrong information.
Title search
A title search is an important aspect of real estate. It can help identify the property’s ownership, rights, and obligations.
The title search process is a multi-step procedure that starts with identifying the property’s owner and then checking whether they are a party to any agreements or contracts that affect their right to sell or transfer the property.
Not every buyer understands what to look for and why it’s important to buy a house through a realtor.
Final say
One of the main reasons buyers look for a private house seller is to save money on realtor commissions. It may appear to be a wise decision, but you may incur losses as a result of this decision.
Because of all the money they have invested in the house, sellers frequently inflate the value of their homes. Buyers simply buy the house based on the information provided by the seller. As previously stated, there are numerous factors that only the individuals listed below can thoroughly examine.
Realtors :
A realtor can help buyers find the perfect home, negotiate on their behalf, and provide valuable advice about financing options. They are also there to help buyers through the closing process when they finally move into their new homes.
Learn more: Who is a Real Estate Professional? (2021 Guide)
Real estate lawyers :
A buyer needs a real estate lawyer when purchasing a house because they are the ones who will be able to make sure that the buyer is not getting tricked into buying a property with hidden problems. They will be able to help the buyer understand all of their rights and responsibilities as well as what they should expect when purchasing a property.
House inspector :
A house inspector is a professional who inspects the property that a person is planning to buy. The inspector will examine the house, assess its condition and provide an estimate of the cost of repairs. The buyer can use this information to decide whether or not they want to purchase the property.
I would recommend that you either pay a small fee in advance for good advice or pay a large fee to fix a problem that could have been avoided in the first place.