How to Buy or Sell a Home That's off the Market.

There are a number of factors that affect the dollars and cents that go into moving.

It happens all the time.Bob, a friend of Sue's, is looking to buy a place.Sue is looking to sell her home.Should the homeowners ever decide to sell, a guest in a one-of-a-kind home could tell them they would love to buy the property.

There is a discussion between the would-be buyer and seller of a home that is not on the real estate market.How do they complete the transaction?What are the steps taken?What are the risks?

Before either party signs on the bottom line, there are pros and cons.The sellers and buyers get ahead of themselves and don't think about the details.There are seven questions to ask about selling or buying a home that is off the market.

The idea of making a deal off the market is liked by both buyers and sellers.Are both parties on the same page?Is the buyer in the market for a while?Are they ready to buy?Is the seller ready to sell?Is their number in the same range or not?

An unrealistic seller will throw out a number that is way higher than what the market supports.They do this because they are either ignorant or they think they should get more.An uneducated buyer will throw out a lowball offer if they haven't been in the game long enough to know the value.

Both parties are willing to do a deal.They need to agree on how to make it work.

A price needs to be established.There are a few options if they are in the same price range but can't agree on a number.Two independent appraisals of the property would be one way to do that.The two can be averaged out.Many argue that the appraised value is always lower than the market value, which is the amount an able and willing buyer would pay on the open market.More on that in a minute, but in the meantime, a real estate agent may be called in.

Many sellers see the opportunity to sell off the market as a chance to save money on their commission.This may be short-sighted.Both parties bring a real estate agent into the transaction.The buyer might want the 6 percent commission deducted from the purchase price, but the seller doesn't see it that way.The seller might want $500,000.The buyer is willing to pay half a million dollars, minus the 6 percent commission.If they split the difference, the home will sell for $485,000.

The purchase price is decided by the market.If the buyer wants to make the deal work, they may pass the savings on to the seller.If the market is slow and there is too much inventory, the seller may pass on the savings to the buyer.Each party benefits when the seller and buyer agree on a number in the middle of the 6 percent.

The buyer and seller will probably have a small voice in their head saying, "What would this sell for if it were on the market?"Both parties take a risk in an off-market deal.Before they sign the contract, the buyer and seller need to be comfortable.A real estate agent is often consulted.

With so much at stake financially and emotionally, most buyers and sellers don't want to go it alone.Any savings will be overshadowed by fear or uncertainty.An active buyer may have been working with an agent.A seller is close to signing a listing agreement.One or both may want feedback from their agents.

Real estate agents can give an opinion of value for free or a nominal fee.Asking the agent to take on the back-end parts of the deal at a discounted rate is a good option.The agent might be responsible for inspections, disclosure review, title search and the contract, but not any marketing, open houses or showings.Both parties have a say in how this is negotiated.Some agents will not feel it is appropriate to reduce their fee.

A fair price is obvious to both parties when the buyer has a specific home they want to buy.They know the value of a one-of-a-kind home because they live nearby.The buyer can find a home on Zillow that is in line with their budget.If the prices are right for both parties, and there aren't any issues in the disclosures or inspections, they may hire an attorney or an escrow company to facilitate the deal for a flat or hourly rate.

If you don't go the formal listing and sales route, be sure to cover your bases and protect yourself.Go with your gut.Bring in the professionals if something doesn't seem right.Going it alone may have its upsides, but they could be overshadowed by the negatives.Don't be afraid to ask your real estate agent questions.Two potential future referrals may be worth the time and effort of a good agent.

The views and opinions expressed in this article are those of the author and do not represent the position of Zillow.

There are some drawbacks to this approach.If you know the buyer, you can sell your home off-market.

Real Estate Listing Photos Matter 3 Reasons Why Buyers Shouldn't Go It Alone How to Buy or Sell a Home That's off the Market

It happens all the time.Bob, a friend of Sue's, is looking to buy a place.There is something.