Home, Land, Property Buying and Selling - Buying: For sale by owner vs. realtor

Hi, I'm a first time home buyer and I was curious, what are benefits if any to buying a house from the owner or buying one from a realator? I'd have to finance it some how regardless.

Buying direct from the owner cuts out the middleman [realtor] so a few $ can be saved. Going thru a realtor gives you access to more homes for sale [more buyers for seller] A realtor doesn't provide financing but they can steer you in the right direction for financing and of course they handle the closing. In a private sale, either the buyer or seller [sometimes both] must hire an attorney to do the closing. A realtor can also help you by walking you thru all the steps involved in buying a home.

It's a good idea to set up your own financing ahead of time. Not only does this speed up closing, prequalifing lets you know in no uncertain terms what size payments you qualify for which determines how much you house you can afford.

Also it can save you a lot of time having a realtor involved b/c they do all/most of the running around for you and talking and get you the info you need/want. They can get you all the proper forms and walk you through them and should be able to answer any questions you have that you don't understand. There could be lots of legal forms you may have to sign that you don't understand and prevent you from signing it if need be.

Though at the time when I bought and sold a home, I've debated on having no realtor involved and though I had the means to find and get what I want, I didn't have the time and I didn't want to go through any headaches. It was well worth it for me.

Are there ways to finance a house without having to put like 20% down? And how about first morgage programs? Has anyone tried those? I know every company has a different program but generally how do they work?

You can look into getting a FHA loan. 3% down. When you talk to a broker or lender, they will have (or should have) options for you. Right now though, FHA's requirement is working out great for many 1st time homebuyers. Only 3% down but then you will also have MMI (Monthly mortgage insurance). Here's some more info:

http://www.hud.gov/fha/choosefha.cfm
http://www.hud.gov/buying/

Once you get on that site, you can browse around to find out a lot more info as well.

ok, well I was told about a property near where I live, it has a small two story house and a one story house. The property plus the houses is $10,000. The two story needs some work (not sure yet on how much work) and the one story may need some work aswell. Rent-to-own would be an option with this but where could I get the money to fix it? What are my options on that?

:cool: $10,000-I'll take it! j/k Sounds very cool.

FHA has a program for that as well. It's a 203K. I'm not very familiar with this program/loan but it's definitely more work and there's more specifics:

http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

What kind of fixes? If they aren't major than it might not be necessary.

Not sure on the fixes really. I'm pretty sure on some structural work because one of the corners appears to be leaning so probably floor joists. Have not had a chance to get in and look at it yet though.

As an agent myself I can tell you that we can assist with many of your hurdles just like previously said. A buyer's agent is going to represent you in the transaction. If you decide, you can hire an agent just to help you with the paperwork. Sellers consistently are more interested in offers on their home from a buyer that is already prequalified versus a buyer writing an offer that is contingent upon financing. If there are multiple offers on a home I'm sure you can guess which one they are interested in.

I feel the most important decision you can make is choosing a lender and an agent can help you with that as well but the ultimate decision is yours. There are many different options out there. You don't have to put 20% down but the more you put down the less your payment. FHA requires 3% down. Any reputable, trustworthy mortgage lender will discuss all your options regarding a down payment, terms, etc. Depending upon the area you want to buy, there are also options wherein you can obtain financial assistance for the down payment. Some of those options include down payment assistance up to $3000 with no repayment as long as you stay in the house for 5 years. Most of these programs are first come, first serve.

If your a first time home buyer with no other property to sell- the market is your oyster right now!