I am interested in purchasing a property that was on the market last fall, but was removed in November. I'm still interested, but would like to by the property through a private sale if possible. In speaking with some people who have purchased through private sales, its seems all I need to do is have an attorney draw up the purchase agreement and if its accepted have a home inspection completed. My question is this. What does a seller need to do to complete a private sale, and how does the process work on the sellers end?
Any guidance would greatly be appreciated!!
From what I've seen, an attorney can draft up either the single page agreement or a few page, nothing crazy. From that point, you'd just find a titling company to process the transfer. In this area, I feel like the average cost fees ranges 1100-1400 in the area.
I've talked with a few attorneys so far and have really liked Ben Bauer down in Cincinnati. He seems pretty fair on pricing. Then you can just use the template in the future.
Depending on where the purchase occurs, just make sure to understand the tax prorations, inspection contingency, and making sure they're paid up on prior taxes as well.
Just factor all these number into your offer price for ARV.
Buying from a private seller is a simple as just signing the purchase contract it is always nice to have a lawyer review the contract since its binding but for the most part you sign a contract you agree to the terms of the contract and you abide by the rules of the contract. Once you've completed the inspection and it is satisfactory you can send the contract to the title company and they will schedule the closing as needed.
We've both bought and sold property in private sales. In our most recent purchase, the seller was a relative, and had no clue what to do so we did most of the legwork for her. In both cases, our title agent provided us with a purchase contract, plus the standard Ohio disclosure form that the seller needed to complete. They also handled things like determining prorated taxes and paying off the seller's loan. We have a long term relationship with the title agent and did not use an attorney, though that's never a bad idea. Hope that helps, and good luck!
@John Bongers It sounds like approaching the sellers is your first step. They may not even be interested in selling anymore, or you may not be able to agree to a price and terms.
If you come to an agreement with the seller, you need a written purchase agreement, whether from an attorney, or one you pick up at Office Depot. Getting pro advice is highly RECOMMENDED though, so I wouldn't go the Office Depot route. The form is simple, but there are a lot of nuances. It's easy once you've done a few, but the first couple can be confusing, and you don't want to miss something.
95% of my purchases and sales now are without an agent, so it's second nature for me. I do remember the forms being very confusing when I first started though.
The seller will have to provide a Ohio Residential Property Disclosure, and Lead Paint Disclosure, although they do not have to be completed when the purchase agreement is signed, they do need to be done prior to closing. They may already have them completed from when the property was listed.
Then you can go through inspections (also recommended), finalize financing if needed, and get the closing scheduled with an attorney or title company.
Go make a deal.
Thanks for the information. I plan on using an attorney for the purchase agreement that way I don't mess anything up. If we reach an agreement, does the seller contact a title company to set up closing? Then, does the title company fill out all the paperwork to be signed at closing?
In my experience, either the seller or the buyer can contact the title company - we've done it on both sides. And you are correct, they should calculate all the prorated taxes, deed recording fee, and other prorated monies and fees for you and provide you with a closing statement.