Buying a Home Through a Private Sale? Here’s What You Should Know

Buying a home through a private sale can be a great opportunity. Without a property being listed on MLS, buyers and sellers often have more flexibility when it comes to negotiating the purchase price, closing date, and other terms. Plus you usually save on realtor fees!

However, one thing that often catches buyers by surprise is that an appraisal is commonly required as part of the mortgage process.

When a property isn’t listed on MLS, lenders have less information available to help determine its market value. Because of that, they will often require an appraisal to confirm that the agreed-upon purchase price is reasonable, that the property is suitable security for the mortgage, and to get a better understanding of the property’s overall condition.

While an appraisal is an additional step, it’s a normal part of the financing process and helps protect both you and the lender. It’s also something worth planning for, as it can affect both your timeline and your closing costs.

Private sales can absolutely be a great way to purchase a home, but they do come with a few differences compared to a traditional MLS transaction. Understanding those differences before you make an offer can help the process go much more smoothly.

If you’re considering buying a home through a private sale, don’t be surprised if your lender requires an appraisal. Knowing what to expect ahead of time can help you avoid delays, budget for any additional costs, and move through the mortgage process with confidence.