Possibly buying first property off of family friend

[Daylon Turner]

Hello everyone,

I just joined BP today, although I have watched/read their info before.

I know of a family friend who will be selling their house in about 6 months or so. She said she would let me know before she puts it on market and possibly sell directly. Is this a good option to reduce costs? Do I need to have a real estate agent for a deal like this? 

This would be my first property, it is in a rural area, has a decent amount of land(2.5 acres) and is not in top condition as the woman is a little older and hasn’t done a ton of renovations. I was thinking about looking into the USDA loan as the area qualifies and so do I. Any tips on the benefits and drawbacks of that would be greatly appreciated too.

I am thinking this could be a great opportunity for me to get started so I am trying to find all the information I can before she is ready to sell. I am thinking of possibly living in it shortly, renovating, and then I am not sure if the better move is to sell it after that or try to rent it out. I really appreciate any tips and information you can give. I feel that this could be a great opportunity that I don’t want to pass up on because I don’t know what to do. Thank you everyone. Let me know if you need more info to answer my questions.

[Billy Daniel]

Being a realtor, I'm biased.  It can certainly be done without a realtor, but I wouldn't recommend that for a first-time home buyer.  Here are some things a realtor would help you with:

Fair market value:  Are you overpaying for the house?  A good realtor will help you determine what a fair price is based on location, condition, age, layout, etc...  This can come in handy when your bank sends their appraiser

Contacts for lending, inspections, and renovations: Realtors work with these people all the time.  They know the ones who provide good value and those that don't.

Survey and title work hiccups:  Realtors often fall victim to the "they just want their commission check" stereotype.  However, my experience is that everyone involved can act this way.  I've had to save my clients from title companies who just wanted to get to closing.

In summary, yes you can absolutely do this without a realtor, but I don't recommend it for a first time home buyer!  Good luck!