Steps Involved in an Off Market Deal after a Price is Agreed On

[Michael Smith]

I've been been mailing postcards and letters to home owners asking if they're interested in selling and actually getting replies faster than I thought I would. My question is what are the steps involved in purchasing the house after an informal price is agreed upon by me and the seller? 

I'm not quite a cash buyer yet but I'm not worried about obtaining financing, my questions revolve mostly around paperwork. I have a close relationship with my broker and I suppose I could always use them but how would their commission work? I doubt my seller would want to pay them a commission out of their already discounted sale price. Can lawyers handle it for me? I suppose I could always add an extra 2-3% to my offer price and finance my brokers commission. 

Any advice from folks that have done this before would be awesome. Also I'm looking for partners with contracting experience if anyone is interested. 

-Michael

[Neil Schoepp]

so you have a verbal acceptance on a price?

1. sign and have the seller sign a Purchase and Sales Agreement (PSA) The PSA is a standard form based on your state. Any real Estate attorney will be able to draw it up for you.

Now that you are under contract (MAKE SURE YOU HAVE APPOPRIATE clauses in there)

3. Get inspections completed (scope the sewer lines and if the property has a septic mound make sure the mound passes) title work and financing in place. You can start building those relationships now BEFORE you have a property.

4. Be clear on your plan for the property and be ready to implement it the day of closing.