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Home Buying


Welcome to the OwnMAX Home Buying Guide that was designed specifically for individuals looking to purchase a home For Sale by Owner (FSBO). The below home buyer’s guide will help you through every step of the real estate purchase transaction from finding a home to closing on it.

1. Set your budget

Although it’s tempting to dive in and begin searching for your dream home, serious buyers know it’s usually better to begin with some budgeting. If you’re like most people, you will be financing some portion of your home. To find out exactly how much you can generally qualify for or how much you can borrow, use our online mortgage calculators. How much house you can afford generally depends on four things:

  1. Your credit history
  2. Your monthly income
  3. Your down payment
  4. Available mortgage rates

When you find a home listed on OwnMAX, you’ll notice that we provide answers to the following:

  • How much is the home worth? We provide you the most recent sales price of the home and selling date along with (3) comparable properties in that same neighborhood
  • What school districts will my children go to? We provide you information about the local schools and churches in the neighborhood the home is listed in
  • Is the home located near a major freeway? Each home listed in our real estate network is mapped out using our proprietary live mapping technology so you can see exactly where it’s located, what neighborhood it’s in and more. You can even zoom in street level on any of our maps.
  • How much does it cost to contact a home seller on OwnMAX or to make a home purchase?  Nothing.  That’s right, nothing.

2. Check your credit

As a rule, borrowers with higher credit scores qualify for the lowest available rates. Before applying for a mortgage, be sure to obtain a copy of your credit report, which you can do right here with us.  This way you can begin fixing any issues right away.  Most people don’t have a clue what is on their credit report.  You should be aware.

It’s best to request credit reports several weeks before applying for a loan, but some credit problems are minor and can be fixed fairly quickly. When you receive your credit report, verify that all the information is accurate. Be sure that information such as names, addresses, dates, employment history and account numbers are correct.

In addition to legitimate credit issues such as bounced checks or late payments, also carefully inspect your credit report for mistakes. It’s common that about 70 percent of today’s credit reports contain serious errors affecting consumer credit. The Fair Credit Reporting Act requires credit reporting agencies to fix credit report mistakes. Learn more about your credit scores now. If you discover errors on your credit report, act quickly by sending a detailed letter explaining the problem and the correction you are requesting. Be sure to attach supporting documents and a copy of the credit report with any errors highlighted.

3.  Get pre-approved, not just pre-qualified

What’s the difference? Being pre-qualified is like standing in line at the ticket window, while pre-approval means you have reserved seats to the show. Pre-approval demonstrates to sellers that you can afford their home, and boosts your credibility and negotiating strength.

  • Pre-qualification provides a general guideline of the loan amount a lender is willing to provide. It does not constitute a final loan approval. Pre-qualification is a positive step, but it does little to prove to sellers that you can afford to buy their property.
  • Pre-approval  means you have completed a loan application, had your credit checked and that a lender has approved your loan for a specific amount and interest rate. You can then present this document to a seller as proof that you can afford his or her property. Pre-approval helps signal to sellers that you are making a serious offer. Be aware that final approval may depend upon property appraisal, existing liens, inspections or other factors.

OwnMAX makes it easy to find, research and evaluate properties. OwnMAX offers expert help with buying and selling homes for sale by owner. Some of the tools we offer home buyers:

  • Search for homes using our live search maps

  • Detailed property information from current county records

  • Proprietary technology that analyzes comparable neighborhood sales and recent sales information

  • View “virtual appraisals” on any homes listed to quickly get an objective estimate of their property values

  • All FSBO homes can be viewed using our exclusive Live Mapping technology so you can view the neighborhoods and surrounding areas. 

When you find a home that you are interested in, simply use the contact information provided to reach the home owner. You can also contact the owner directly via email using the “Request a Showing” link found on every property listing.

5.  Visit properties

Your home search on the Web probably has turned up several properties that meet your general criteria such as beds, bath and square footage. Now it’s time to compare individual homes to see which one best meets your needs. At this point, there are steps buyers should take for more effective comparison shopping, and to limit the “emotional buyer” syndrome that can lead to overpaying and buyer’s remorse. Here are some key points for smart buyers:

  • Have your priorities straight before visiting a house. For example, square footage may be up for debate, but not school districts or security systems. Knowing what’s most important in advance will keep your house visits on track.

  • Separate the structural from the superficial. The seller probably has applied a fresh coat of paint (See the OwnMAX Home Seller Guide) and planted some flowers, but that won’t make up for limited closet space, dark rooms or an impractical floor plan. Now is not the time to be shy … sellers should expect you to look in cabinets and open and close doors and windows. Disclosure laws are in place, but it’s still a good idea to ask sellers outright if major repairs are needed or have recently been done.

  • Use your tools wisely. Some savvy buyers carry an instant or digital camera and take photos to help them remember property details and features. Photos are also useful if a dispute arises as to the condition of the property or fixtures or furnishings being removed by the seller. If you are in doubt, ask the seller for a list of what’s included in the sale. Also, a buyer’s checklist can be a helpful way to organize your thoughts on the home, property, neighborhood and schools. This buyer’s checklist from the U.S. Department of Housing and Urban Development is a good starting point, and can be easily modified to fit your needs.  

6. Make an offer

You’ve gotten pre-approved for a mortgage, found a home and you’re ready to make an offer. But how much should you offer? When you find a home on OwnMAX, our powerful tools give you the dollar amount the home last sold for along with (3) neighborhood comparable homes and their pertinent tax information. This proprietary OwnMAX system looks for homes of roughly the same age, style, square footage and bedrooms/baths within a mile or more radius of the subject home.

  • Be prepared to compromise - Approaching negotiations with a confrontational “win-at-all-costs” attitude is unlikely to yield positive results. Be sure to identify in advance what you will and will not give up to ensure you’re happy with the deal in the long term.
  • Back up your offer - When offering to buy a property, you don’t have to explain how you arrived at a particular dollar amount. But you may fare better in negotiations if you have some objective basis, such as examining comparable sales.  Use our property valuation tools for any property by clicking on the “Virtual Appraisal” link found on property detail form.

The best way to show a seller you mean business is to accompany your offer with a purchase contract and a substantial “good faith” deposit.  For your protection, be sure to place any deposit into escrow with an attorney or title company rather than providing funds directly to the seller.  As a courtesy from OwnMAX you can search through our professional providers of title services in your area by visiting our real estate services directory.

You should be prepared to walk away from unacceptable terms. You may be reluctant to give up after all the time you’ve invested in the buying process, but emotionally tense negotiations can sometimes benefit from a cooling-off period. Walking away (or watching the other party walk away) may be uncomfortable, but it is always preferable to accepting terms you can’t live with.

7. Contracts

After you have decided how much to offer, you must make some decisions regarding the sales contract. Typically, serious offers to buy are presented in the form of a sales contract with a ”good faith” deposit.  In addition to hiring an attorney with real estate experience to prepare their contracts, independent buyers and sellers have several available options:

  • Let OwnMAX do it for you. Through an exclusive partnership, OwnMAX has the ability to prepare real estate sales contracts for you. With a flat fee of only $69.95 this work is done for you. Read more about our FSBO sales document preparation now.

  • Search our real estate services directory for a real estate attorney nearest you. You can also look for paralegal type service providers that can help you as well. Be very careful when choosing a service provider regardless. Also, be sure to review the documents carefully and make sure that you understand all of it.

  • Signup as a Home Buyer with OwnMAX and download some general real estate forms. Because these forms may differ from state to state, it is suggested that you use one of the other methods to help you through the sale.

8. Choose a mortgage provider

In the process of purchasing a home, some buyers get so caught up in price negotiations that they overlook the importance of getting the right mortgage. Paying careful attention to mortgage and closing costs can help you to save on your initial and ongoing monthly expenses. Smart buyers should begin researching the various types of loans and terms available and learn which options best meet their needs. You can get a loan directly from one of our local FSBO partners or through banks, credit unions or a mortgage broker.

  • Mortgage brokers are service providers who don’t lend money directly. Instead, they provide a service by matching your needs with available loans from different sources. A broker’s access to several lenders can mean a wider selection of loans and terms for you, and brokers generally contact several lenders for you.
  • Large banks are reputable and offer competitive interest rates, but may have more stringent lending requirements than some alternatives. In response to competition, many large lending institutions have recently loosened up lending requirements.
  • Credit Unions and smaller banks may offer more flexibility, but sometimes can’t offer rates as low as larger competitors.

While you are evaluating lenders to find the best financing for your needs, click on the OwnMAX metropolitan area closest to you to see if we have a local FSBO partner in your area that can handle your mortgage financing needs.

In addition to providing a loan, your mortgage lender should also help you understand your options and help you choose the financing and terms that best fit your needs. Don’t be afraid to ask questions.

Not signed up as a Home Buyer with us yet? Click here to get started!