26 answers

Home Owners Please Help!

We are buying a house and are first time buyers. So what do we need to do? The man is owner financing bc we had a very bad period for a little while, but things got better. Do we need to have it inspected? There is a little work we have to do to make it how we want it, but nothing we cant get fixed soon.We are so scared and not sure. We think its to good to be true! He seems like a great man and has left us with all the appliances. He said he just had a renter move out back in feburary so they have had to do a few things, but nothing major! What should we do? After a couple days to think about it, we think its just because within the past 6 months we have had 3 people tell us we could get a house and then something happened! We are still going to get it inspected and appraised, but the strange feeling is gone. We are already excited about what we are going to do now. We have picked out colors to paint and flooring we want to change and so much, but we are putting some to the side for any repairs. Also we are going back over there in a couple days to look around again (like the 4th time) and we have a lot to get in order. I am contacting the county records office tomorow and an attorney. I am also contacting him again to ask a few more questions. I think he is a realtor, he has his own website and company through them on top of him working at a local company. He has sold a few houses in this area and a few other areas as well and I am going to see if I can find out who they are and ask if they had any problems (would the county office know that or could I get the information from someone?) I am also asking a few realty agencies if they have heard of him and if he is legit, bc he has been doing this awhile. Thanks everyone!

What can I do next?

Featured Answers

Always get a home inspection, paid for by you. Next, I would have a legally binding agreement drawn up by a lawyer for "owner financed homes." I did this when I first moved here. It is a contract stating basiclly that you are buying the home at $$$ payment for so many years. This protects you in case he dies or something else like that. Always have legal paperwork done, if he is not willing to do that then it is too good to be true. If the expense is what makes him balk, offer to split the lawyer bill. CB

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More Answers

Yes. You need to get an inspection, it's well worth a couple of hundred $$, it could save you thousands. Depending on your area, you may also want to consider having termite and insect inspection (it's usually not included with the house inspection).

You also need to get a lawyer to review your contract. Read the contract carefully and make sure you understand it. Don't be afraid to ask questions.

Congratulations!

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I would get the house inspected, but also look into a home warranty for at least the first year. We got one when we moved into our old house and it worked out great because our washer machine broke in the first month.

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Hi there! I work in the real estate genre in KS, and ALWAYS get an inspection if you are putting cash down, especially 3-5% or more, you will save a lot of time and heartache! If you are only putting down the equivalent of a security deposit, there isn't as much risk to you, but you do want to make sure you look around and make sure you don't see any black mold, or fresh paint on ceilings, etc...

Make sure you use official contracts, not ones he types up. You can pick these up at any for sale by owner shops...

If you have an agent friend in area, have them check the history on property to see how long on market, any pending sales that were cancelled, etc. Cancelled pendings could be a sign of a bad inspection?

Make sure all terms are specified. How long will he owner finance and at what %? Will it balloon after 1,2, or 3 years? If so, you really need to make sure you are in the position to secure traditional financing, or he can raise your rate down the road. You may want to get it appraised too, as if he is asking too much for home, and down the road it doesn't appraise as high as he is asking for, you will not be able to get a traditional loan without bringing more cash to the table (which is a waste, unless this is your forever home). Find out who will get the tax deduction!

It is normal for him to charge a higher %'age on owner finance, as he is carrying the "risk" on the loan.

There is less negotiation with owners when they are carrying the loan, but he should make repairs to any significant items found to the home.

Check out FSBO sites, and there is a checklist I am sure that is more detailed that you can make sure your bases are covered.

But VERY much buyer beware. There could be a reason it hasn't sold with a traditional buyer? But also, the market is so tough, sellers have to get more creative to get a buyer sometimes too.

He may be nice, but get EVERYTHING is writing. Good luck!! =)

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you need to get the place inspected. That should also include an inspection of the fondation as well.You can not always see that the roof needs repair or past water damage to the house. The could also have dangerous wireing or plumbing problems just waiting to happen. I am concerned about the owner financing the house for you. you would need to hire a lawyer to look over the paper work and terms of the loan for you. The lawyer should also set up escrow services that include a title company. A title company would check to make sure theat the man does not have any tax or other leans or loans against the house. if the man has a loan against the house or a tax lean and you buy the house, you could be responsible for it.

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First, yes you need an formal inspection. You want to make sure you know what your getting. A good inspector will give you an idea how soon the major appliances, and roof will need to be replaced. Even if that is five years from now knowing so you can save and plan is helpful.

Second, you want to select a lawyer to review the paper work. Important -- You need to pick the lawyer, and the lawyer needs to be paid by you. The owner-financing guy holds all the cards. You could get scammed. You need someone who knows real estate law in your area to make sure it goes right, and that your rights are protected. A couple hundred dollars for you lawyer to review the deal and do the closing willl be well worth it. You'll be less scared if you do these two things.

Manson was a nice, well dressed man.

The sellers job is to make money and protect himself. You need to protect yourself. If he was so great you wouldn't be this scared. You gut is telling you something. Listen to it.

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A $200 inspection can save you a $50,000 problem later on.

2 moms found this helpful

Yes, get it inspected. It can make all the difference in the world. I know a very reputable inspector in the Dallas area - I can see if he knows a company in your area to refer you to. Let me know if you want me to ask him. Good luck!

1 mom found this helpful

Do not let the "owner Financing" get in the way of getting a quality house. The insurance company will make you get an inspection of the house and make sure that their "investment" as well as yours in sound before they will insure you.

Get the inspection, survey and everything else you would need as if you were using a traditional lender. This is your house and it should not even be a question. You need to know everything that you are getting into.

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