can you buy a house for cash without a
realtor
well of course you can buying a house
either with or without a realtor
is a complicated process and if you want
to do it on your own it may take some
above the average intestinal fortitude
on your part but it can be
done so today we are going to talk about
how to make a cash offer on a house
without a realtor
everybody i'm caroline reed with the
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any future videos so today we are
talking about
making a cash offer on a house without
using
a realtor can you even do that of course
you can
it's not something that the regular
average consumer
does on their own but it certainly can't
be done and with a cash offer it
actually kind of simplifies the process
a little bit
being a licensed realtor going it alone
is something that i don't
really recommend licensed realtors bring
a lot of value to the table they know
all of the contracts that you need the
addendums the amendments the disclosures
what's needed when and what's not needed
when
they can negotiate on your behalf they
know the
area they know whether the house is
valued right
all these things and there
the price of that service is not coming
out of your pocket it's usually already
baked
into the seller's contract so it is free
representation to you
and so you really should think about
taking that free representation but
there's a group of people who like to go
it alone and that's okay too
so if you're gonna do that what do you
need to know
well i would say as a consumer the first
thing that you probably want to do
is to deep dive into some information be
prepared
read books read anything that you can
find online articles whatever
seep in as much of the the information
as you can about the process
there's so many nuances to it between
different contracts and
and different addendums that may be
necessary depending on your situation or
the house that you're buying
there's too many to cover in a short
video like this so
do your homework get as familiar as you
can with the process before you even
start
then i would say make a list of
your priorities um so you know what
you're looking for do you need your
your three-bedroom two-car garage it has
to be in a specific school district
get that list down so when you're
looking at houses
you can immediately hone in on the ones
that you're looking for for sure
and when you find that area that you're
looking in get to know
the values in that area
so you know what's going to be a good
deal and what's not going to be a good
deal
for the regular consumer uh good
valuation sites are like
trulia or zillow or redfin
none of them are perfect um but they'll
at least give you an
idea you know a broad idea of
what that particular home is going to be
worth
next i would look into getting a real
estate
attorney even though i know you want
to go it alone attorneys can help you a
lot in terms of filling out the right
paperwork
and knowing uh what what things need to
be added what things
don't need to be done they are a wealth
of information and they'll be able to
help you out a lot
next you're going to want to find the
documents that you're going to be using
first and foremost obviously is a
purchase agreement
now the ones that the realtors use are
copyrighted so you can't use those but
there
are um free sites online
legal sites that you can download those
documents
um but just know that it's not it's also
not just the purchase agreement
um there is things like lead-based paint
for any if you're buying a house that
was built before 1978 you need a
lead-based paint addendum
so make sure that you do your homework
so you know what
documents beside the purchase agreement
what documents that
you need for your particular your your
particular situation
and the house that you're buying and
finally you actually get to start
looking so go
to your to your sites your realtor sites
when you you found some houses that you
want to go look at
if it's a house that's that's already um
represented by an agent which i assume
that it will be most of them will be
um you need to call that listing agent
and let them know that you want to go
look at the house
and set up that showing with them if
it's a fsbo if it's for sale by
owner you will have the owner's phone
number available to you
call that owner and the same thing call
them and set up a showing that you can
come
and look at the house and if you like it
and you're ready to make an offer that
is your next step
make an offer on that house and part of
that
is doing your due diligence for
valuation go back to those home those
home sites that i talked about make sure
that
that your offer is somewhat in the value
range
or if you think based on the
neighborhood that it's worth a little
less adjust your offer accordingly
but just know kind of what you're
getting into so you're not offering too
high or too low
either one is kind of a bad deal and
when you're putting that offer together
just know that everything is negotiable
not just the price but who's paying the
closing costs what the closing date is
going to be
personal possessions if there's a pool
table in the basement
and you want it you can ask for it
or if you want to close
sooner than the seller wants to they
have the option they can
close early and rent back from you
that's called a seller rent back
that's an option too all these things
are options for you
when you're putting together that offer
and all these things together
make one giant picture of an offer so
it's not just the price it's
all of these things put together and
even some more things to think about
are things like inspections any
contingencies like do you need to sell
your house before you can buy this one
um earnest money earnest money is
typically a one percent
of the price that you're offering to buy
the house for but
if you're in a super fast moving market
uh where there's lots of buyers
competing for the same house and you're
in multiple offers
sometimes that earnest money gets a
little higher because that's a signal to
the seller that you are
serious because if for some reason you
don't close on that house
the seller gets to keep that money so it
just shows the seller that you've got
some skin in the game
so earnest money can fluctuate but it's
typically one percent
and you're going to make that earnest
money check out to
either if it's a house that's
represented by an agent you're going to
make it out to that
agent's brokerage or if it's a fsbo you
are going to make it out to
the owner himself also since this is a
cash
offer when you're putting this offer
together another thing that you're going
to need is
some proof of funds the seller's going
to want to know
that you've got the cash that you say
that you have
so you can you could probably just print
out
your bank statement online take out the
information that you
bank account information things like
that but just something that has your
name on it and a date make sure that
it's recent that it's
you know not from six months ago but a
recent one
and it's got your name on it and it
shows that an account that's got
the money that you say that you have
so you got all of that stuff together
right
um so you have this huge offer and you
are then going to present that either to
the seller's agent if the house is being
represented by an agent
or to the owner if it's a for sale by
owner property
and let's just say they say yes and you
have
uh an accepted offer hooray for you um
just know that that offer is not
officially binding until both parties
have signed
and both parties have a signed copy
in their hands that is when that
offer is a binding contract
okay so next step you are going to want
to
take a look at your calendar because
you've got some timelines that you have
to pay
attention to if you don't want to lose
your earnest money
inspections you will have put a
a date range of say maybe seven days or
ten days or maybe even shorter
if your market is moving really fast
that you have said you will get your
inspections done if if that's what
you're going to do
so if you're getting those inspections
done you need to have those
done in time to let's just say your
window is seven days
you need to have that inspection done
let's just say you have that done
in three days you need to leave yourself
some space at the end
there after the inspection because if
this inspection comes back with problems
you need to also have time to
renegotiate with the seller either a
price drop or the seller fixes something
some
anything like that you need to have time
to renegotiate that
with the seller and have the seller
accept
all of that stuff all has to be done
within that seven day
window and if not
you are in danger of earning or losing
your earnest money so just pay
attention to that timeline another
timeline
is the appraisal you will want to have
an appraisal done on the house to make
sure
that it is worth what you think it's
worth just to make sure that
um you are getting the deal that you
think that you're getting so
that will be that needs to be done
before closing as well
let's go back to those inspections for a
second
not only do you want to think about
getting the house inspected in general
but depending on the circumstances you
may also want to have other
inspections such as mold or radon
or the structural integrity of the
foundation if you're seeing cracks in it
and if you need to make those extra
inspections you can
renegotiate that renegotiate that
inspection window
with the seller as well to make sure
that all of that gets done in time
and the last bit of information about
inspections just know that if
you've had all of your inspections and
there's problems and you've been
negotiating with the seller
and you can't come to an agreement if
your
contract is is if you've got an
inspection contingency in your contract
that should allow you to back out of the
deal at that point
and keep your earnest money okay the
next thing on the list
is the title company i strongly
recommend hiring a title company to
work through any title issues that you
may have
title companies don't cost very much
money and they do a great job they will
go
they will pull the title to that house
they will make sure that it is free
of any liens or and conferences or
anybody else make sure that nobody else
has a claim
at this point to that property
that then brings me to the next point
which is title
insurance since you don't have a lender
there will be no lender's policy but you
will have the option of buying
an owner's policy an owner's title
policy
protects you from
let's just say the house was sold three
owners back
and there's a grandchild that nobody
knew about who says wait a minute i
that that house is mine i was the
rightful heir to that house and nobody
knew about this person
an owner's title policy protects you
from those kinds of
clouded title issues so something that i
highly recommend
okay so you slogged your way through all
of that
we're almost to closing day but not
quite
one last thing that you want to make
sure that you take care of
is a final walk through do it the
morning of closing the day before
closing
no more than a week prior to closing
because what you want to do is go
through that house one more time
and make sure that it's in effectively
the same
uh condition as it was when you saw it
the first time
uh you want to make sure that anything
they said they would take away they did
anything that they said that they would
leave there they've left there
just to make sure uh that it's basically
the same
property that you agreed to buy
then closing day
so you finally made it it's closing day
what is closing date what happens on
closing day well a couple of things
you will get your final document signed
at that point
when you do that possession is
transferred you will actually have the
actual
transfer of possession at that point and
at the same time
the closing companies the title
companies will
uh transfer the funds at that point
and just remember when you're bringing
funds to the table
don't bring cash don't bring a personal
check you must bring
a cashier's check so that's it
those are all the steps involved in
buying a house for cash without a
realtor if you are however still
weighing your options and you're
thinking about going the traditional
road
um you can go ahead and click on this
video right here
for information on the conventional
loans with only five percent
down thanks for joining me today and i
will see you guys next time