Buyer Guide — Buckeye Home Exchange | Step-by-Step Home Buying

Step 1

Get Pre-Approved First

Before contacting any seller, get your financing in order. It makes you a credible buyer and speeds up the whole process.

💰 Know Your Budget

Gross Annual Income

$

Monthly Debt Payments (car, student loans, etc.)

$

Down Payment Available

$

Interest Rate (current 30yr fixed)

%

✅ Pre-Approval Checklist

Contact 2–3 lenders and compare rates (credit union, bank, mortgage broker)

Gather last 2 years of tax returns and W-2s

Gather last 2 months of pay stubs and bank statements

Check your credit score (aim for 700+ for best rates)

Received a pre-approval letter from a lender

💡 FSBO Advantage: When buying directly from an owner, the seller isn't paying a 3% listing agent commission. That money doesn't disappear — it gives you negotiating room. Many FSBO sellers are willing to price slightly lower knowing they're saving on fees.

Step 2

Evaluate the Property

Is it fairly priced? What should you look for at the showing? Here's your pre-offer homework.

📊 Is It Priced Fairly?

Check these free sources for comparable sales (comps) in the last 90 days:

Checked Zillow "Recently Sold" within 0.5 miles

Checked Redfin for sold comps with same beds/baths

Compared price per square foot to nearby sold homes

Checked how long the listing has been active

🏠 At the Showing — What to Look For

Water stains on ceilings or walls (roof or plumbing leaks)

Cracks in foundation, basement walls, or around windows

Test every faucet, toilet, and light switch

Check age of roof, HVAC, and water heater

Look for signs of mold (musty smell, dark spots)

Check the electrical panel — is it updated?

Note condition of windows, doors, floors

Take photos and notes during the showing

Step 3

Get an Inspection First

Never make an offer without scheduling an inspection. A $400 inspection can save you from a $40,000 mistake.

⚠️ Critical: While most inspections happen after an accepted offer (via inspection contingency), you can also request a pre-offer inspection on a FSBO home — sellers often agree because it shows you're serious. This removes the inspection contingency and makes your offer much stronger.

🔍 Inspection Checklist

Find a certified inspector at ashi.org or nachi.org

Budget $300–$600 for a full home inspection

Attend the inspection — walk through with the inspector

Consider add-ons: sewer scope, radon test, mold test if applicable

Read the full report carefully before deciding to proceed

Get repair estimates for any major issues found

💡 Use inspection findings to negotiate: If the inspector finds $8,000 in issues, you have three options — ask the seller to fix them, ask for a price reduction, or ask for a closing credit. A closing credit is often easiest since you can choose your own contractors.

Step 4

Make Your Offer

Buying FSBO means negotiating directly. Here's how to craft a strong, winning offer without an agent.

⚠️ Must be in writing: All real estate purchase offers must be in writing to be legally enforceable. Verbal agreements do not hold up. We strongly recommend having a real estate attorney in your state draft or review the purchase agreement (typically $300–$600).

📝 What Your Offer Should Include

Purchase Price

Based on comps — don't lowball unnecessarily

Earnest Money Deposit

1–3% of purchase price — shows good faith

Financing Contingency

Protects you if loan falls through

Inspection Contingency

7–10 days to inspect and negotiate repairs

Appraisal Contingency

Protects you if home appraises below price

Closing Date

30–45 days is standard for financed purchases

Inclusions/Exclusions

Appliances, fixtures — be specific

💡 FSBO negotiation tip: FSBO sellers are often emotionally attached to their home. Be respectful in your approach. A compliment about the home followed by a reasonable offer lands better than a lowball. You're negotiating directly — tone matters more than with agents.

✅ Offer Checklist

Consulted a real estate attorney to draft or review the purchase agreement

Included pre-approval letter with my offer

Specified all contingencies clearly in writing

Set a 24–48 hour expiration on my offer

Step 5

Title & Financing

Offer accepted — congratulations! Now comes the behind-the-scenes work before you own the home.

🏦 Finalize Your Mortgage

Submit full loan application to your lender

Respond quickly to all lender document requests

Don't make any large purchases or open new credit accounts

Lender will order an appraisal — coordinate access with the seller

Lock in your interest rate

📋 Title Process

Title company ordered — review and agree on who pays

Title search underway (verifies no liens or ownership issues)

Homeowner's insurance obtained — lender requires this

Review and purchase owner's title insurance (recommended)

💡 Owner's title insurance: Your lender requires lender's title insurance (which protects them, not you). Owner's title insurance protects YOU if title disputes arise after closing — past liens, fraudulent sellers, clerical errors. One-time premium, typically $500–$1,500. Worth it.

Step 6

Closing Day 🔑

You made it. Here's everything you need for a smooth closing day.

✅ Before Closing

Review your Closing Disclosure 3 business days before — compare to Loan Estimate

Wire closing funds to title company (verify wiring instructions by phone — fraud is common)

Do a final walkthrough 24 hours before closing

Confirm home is in same condition as when you made the offer

🧳 What to Bring

Government-issued photo ID (driver's license or passport)

Cashier's check or confirmation of wire transfer

Proof of homeowner's insurance

Any outstanding documents requested by lender

🔑

Welcome Home!

You just bought a home without a buyer's agent. You kept more money in your pocket and dealt directly with the owner. That's the power of FSBO.

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