SoCo By Owner Frequently Asked Questions (FAQ)


Disclaimer: This is provided for reference only and is not to be considered legal, financial, or tax advice from Southern Colorado for sale by owner.

Q. Is buying from an owner difficult?
A. Not at all, in fact typically by-owner transactions are easier, less frustrating and time consuming, without the back and forth of agents. Buyers can ask sellers questions; no one knows more about the property than the seller. Buyer and seller can work out terms and reach agreements directly, often without wasting valuable time waiting on offers and counter-offers. Buyers and sellers often report that the process can be friendly and gratifying for both parties!

Q. How do I make an offer?
A. Sellers listed with SoCoByOwner can access and download Colorado State Real Estate Forms and fill them out, or furnish them to the buyer to fill out.  Forms can also be purchased at office supply stores or be downloaded from the Colorado Real Estate Commission’s website at; http://www.dora.state.co.us/real-estate/contracts/CONTRACTSII.htm Look for the Contract to Buy and Sell Real Estate (Residential Form).  This form serves as the offer-to-purchase.

Q. How can I protect myself from problems with the condition of the property?
A. A home inspection is usually arranged and paid for by the buyer. Look under Inspection Service in the yellow pages.

Q. What if the inspection report finds that repairs are needed?
A. Discuss and negotiate with the seller what they are willing to fix. If there are repairs that they aren’t willing to do, perhaps that needs to be reflected in a lower sales price.

Q. What if I’m working with a real estate agent? What happens then?
A. Since the seller is saving the agent/broker listing fee, they may be willing to work with the buyer’s agent even though the buyer’s agent will collect a fee. However, the buyer should keep in mind the motivation to the seller to sell their property themselves is to keep their hard-earned equity and offer the buyer a better price. If the buyer is working with an agent, the sales price should increase to reflect the 3% fee (or whatever fee has been negotiated between buyer and agent) that the agent will collect as a commission.

Q. What about the appraisal? Who takes care of that?
A. The mortgage lender is usually the one who will order an appraisal.