Buying From a Friend-What Steps to Take?

Question

I've been looking for properties with a realtor for a while now. A few days ago a good friend of mine decided she is ready to sell her house. We discussed it and both decided we are serious about her selling me her house. Neither of us are really interested in involving realtors if we don't have to. We figure we could both save some money, her by not having to pay a realtor the 6% and me because she could sell it to me at a more reasonable price because she will be saving around 15,000 by not using a sellers agent.

I am very confident that we can find a price that feels fair to both of us, but neither of us really know all of the steps necessary to close the deal.

Can anyone help lay out the steps involved? I will be working with a mortgage lender, so I'm sure he will be able to help, but I am also not opposed to hiring a real estate lawyer or someone else to assist.

Thanks y'all!

Claire Mannino · Answer

Thanks for the information. It is a nice house in a GREAT neighborhood that will definitely need some work put into it. The electrical is the main thing that I am concerned with. It has partial knob and tube wiring. Nothing has been remodeled or updated since the 70's. I would be buying to hold.

Rachel H. · Answer

I definitely agree with @Daniel Chang. Real estate agents do a lot behind the scenes. Best of luck!

Claire Mannino · Answer

Thanks Daniel!

Daniel Chang · Answer

The steps required is highly dependent on your state and location.  However, there are a lot of steps and disclosures that must occur that is second nature to an experienced real estate agent.  What I would recommend is to find an agent that will do this for a fee, not a percentage.  After all, if you and a friend agree on a price, the agent does not have to market and procure a buyer.  They just have to take you through the transaction.