Washoe County for sale by owner
  Washoe County For Sale By Owner Welcome to FSBO Washoe County Homes

Tips for Buyers

Buyers and sellers should read FSBO Washoe’s What’s Involved in Buying and Selling a Home for a general understanding of the basic procedures, documents and requirements pertaining to the purchase and sale of a home. Buyers should then read these Tips for Buyers before proceeding.

  1. PURCHASE CONTRACT.  The buyer’s offer, the seller’s acceptance, the purchase price, earnest money, financing, warranties, contingencies and all of the mutual rights and obligations between buyer and seller as further described in What's Involved are embodied in the purchase contract.  When signed by the parties and all its contingencies are satisfied, it is a legally binding contract which may be specifically enforced if either party breaches any of its material provisions.  It is therefore important for both parties to understand and approve all of its provisions before the contract is signed.  A copy of a purchase contract recently used in the direct purchase of a home in Washoe County is found in FSBO Washoe’s Services Directory together with the name of a firm which sells purchase contract forms which it represents comply with the legal requirements of all 50 states.
  2. THE OFFER. The offer is generally made on a contract of sale form provided by the Buyer.  As a general rule, buyers should try to make reasonable offers if only because many sellers may not respond to offers they regard as unreasonable.  In calculating the offer, a buyer should check recent sales prices and current asking prices for comparable houses in the area.  Buyers should also consider whether prices are trending up or down, the likelihood of competing offers, how anxious the owner is to sell and how much they want the property.  Buyers should be prepared to receive a counteroffer which may accept some of their terms, propose new terms and ask for changes to others.
  3. CONTINGENCIES.  Contingencies are things which must happen or actions which must be taken before the purchase contract becomes binding.  Buyers’ offers should include all the contingencies necessary or important to them such as their ability to qualify for financing, their ability to sell their present home before closing and their right to have the home inspected before closing for radon, mold, pests, structural soundness and other defects.  Sellers normally want the contract to state what if anything they must pay to repair defects disclosed by inspections and specify the respective rights of the parties if repair costs exceed this amount.
  4. FINANCING.  Unless the sale is for all cash, serious buyers should obtain a pre-qualification letter from the mortgage lender stating the likely amount they can borrow or a letter pre-approving a specific loan amount.  FSBO Washoe’s Services Directory lists several reputable loan brokers and lenders who regularly provide such letters to qualified buyers.
  5. HOME OWNERS INSURANCE.  Lenders require buyers to secure home owners insurance to protect against loss or damage to the home from risks specified in the policy during the term of the loan.  Not every insurance company will cover every risk the lender may specify; e.g., since Katrina some won’t cover flood damage on the Gulf Coast.  Buyers should therefore make sure they can obtain an affordable home owners policy covering the risks their lenders specify before making an offer.  FSBO Washoe’s Services Directory lists several licensed providers of home owners insurance.
  6. TITLE.  Buyer(s) may take title in Nevada as an individual or in a number of other forms including tenants in common, joint tenants, community property or community property with right of survivorship.  The choice will vary depending on whether the person(s) taking title are single, married, domestic partners, relatives or unrelated third parties.  It is advisable for buyers to consult an attorney to learn the characteristics of each form and which is probably best for them.
  7. TITLE INSURANCE.  Title insurance is a policy of insurance issued by a title company which protects and indemnifies the lender and the home owner against loss resulting from unknown liens or claims against the property existing when the policy was issued, defects in the title from causes such as forged or misfiled documents and other claims against the property which were not disclosed by the title search.  Lenders require borrowers to secure title insurance.  FSBO Washoe’s Services Directory lists the names of several reputable companies licensed to issue title insurance policies in Nevada.
  8. CONTACTING THE SELLER.  Buyers not represented by realtors are free to call owners directly, advise them of their interest and discuss with them price, closing date, earnest money, payment terms, contingencies, improvements, warranties, division of closing costs and other matters normally addressed in the contract of sale.  Frequently, the parties find it possible to agree on all the important terms of the purchase contract in face to face discussions, thus saving time and the uncertainty sometimes encountered in preparing and understanding a series of formal written offers and counter offers.
  9. EARNEST MONEY.  Most sellers require the buyer to deposit with the escrow holder earnest money (usually about 1% of the purchase price) to confirm the buyer’s good faith.  If the sale goes through, this amount is normally credited to the purchase price.  If the seller defaults, the contract usually lets the buyer get his money back.  If the buyer defaults, the contract usually lets the seller keep the earnest money as liquidated damages.
  10. ROLE OF THE ATTORNEY.  For a reasonable, fixed fee local attorneys specializing in real estate law will draft or review all necessary legal documents and advise their clients at every stage of the sale through closing.  While many homes are sold directly without the assistance of an attorney,  FSBO Washoe recommends that buyers and sellers each retain their own in order to save time, avoid legal mistakes and assure peace of mind.  Substantial savings in real estate commissions more than offset the relatively modest cost involved. Several reputable real estate attorneys are listed in FSBO Washoe’s Services Directory.