re: Buying a for sale by owner home

Back to your other questions....the seller draws up the purchase agreement, you give him a check for your earnest money, and your bank or lender handles the closing. Your purchase agreement should specific that it is contingent upon an inspection (after which you can either renegotiate to address any deficiencies found) and contingent upon your financing. It will also have a termination date by which you must either close or break the agreement. Do you need to sell your present house? If so, your off can be contingent upon finding a buyer for your house, but most sellers won't accept that as a condition unless the market is really slow.

If you know absolutely nothing about buying/selling, do some research on the process before you sign a FSBO purchase agreement. You need to understand your rights should the inspection reveal deficiencies or the deal begin to sour due to some other matters.