Should You Buy a Home Privately? 3 Things to Watch For

Buying a property off-market, as a private deal without a REALTOR®, can be a great idea. If you’re a savvy buyer who has done real estate deals before, you could save tens of thousands of dollars.

But if you’ve never bought a property before, a private deal can be risky. Here are the top three things to watch for.

1. Make sure your offer has conditions

In private sales, people sometimes agree on a price, jot it down on paper, and call it a done deal. That leaves you completely unprotected. You could end up buying a property you know almost nothing about.

Protect yourself with conditions such as:

• Financing, so you’re not on the hook if your mortgage falls through
• Home inspection, so you know what you’re buying
• Lawyer review of the agreement

2. Negotiate the deposit

As a buyer, you generally want the deposit as small as possible. Just as important: decide who holds it. In a REALTOR®-assisted deal, the deposit is held in a trust account. In a private deal, it should be held by a lawyer in trust, not handed directly to the seller.

3. Get the use of the property in writing

Make sure the intended use of the property is clearly stated in the offer. If you’re buying to live in it, rent it out, or run a business from it, put that in writing. If you miss this, you could end up with a property you can’t use the way you planned.

There’s more to watch for

These are just the top three. Private deals can involve title issues, missing disclosures, unclear inclusions and more. If you’re not experienced, it’s worth having professional representation.

Thinking about a private or off-market purchase?

Whether it’s on-market or off, the Right Choice team can help you buy safely.

Call 289-276-1716 or start your home search.