Many home buyers want to purchase a home directly from the seller to cut out the middle man, but when it comes time to make a formal offer it is often the case that neither buyer or seller knows what to do. Without the aid of a professional real estate agent, making an offer to buy a home that is for sale by owner requires the buyers to complete a real estate purchase contract on their own.

Generic purchase contracts can be found at your local office supply store and will typically come with simple instructions for use. There will be blanks to be filled on the contract and wording that applies in the state where the property is located. If you can't find a purchase contract at the office supply store, you can also try your state's official website, division of real estate section.

Some common information you will need to fill out includes:

• Names of buyers and sellers

• Property address

• Purchase price

• Source of funds, and if the buyer is applying for a loan then a loan approval date and type of loan will often be included

• Closing date

• Earnest money

• Seller concessions (money the seller pays towards the buyer's closing costs)

• Any other conditions the buyer chooses to include (a common condition is "subject to appraisal" to make sure the purchase price is not more than the appraised value)

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Once a buyer has completed the purchase contract, it should be delivered to the seller, at which time the seller can review and either accept the offer, reject it, or make a counter-offer. Wise sellers will always make a counter-offer, keeping the negotiation process alive, no matter how much they dislike the original offer.

When an offer is finally accepted by both buyer and seller, the contract is signed in all the appropriate places and the buyer either gives earnest money to the seller or gives it to the title company where the closing is to take place, to be held in escrow.

The buyer usually has contacted a mortgage broker for a pre-qualification prior to having their offer accepted by a seller, so the completion of the loan approval process is the next step in the process. Once the lender is ready to close, an appointment is made at the title company where both buyers and sellers will sign the necessary documents for the transfer of title.

Good resources for those involved in a for sale by owner transaction are your local mortgage broker and your title company of choice. These professionals are familiar with the real estate world and though they are not authorized to act as agents or represent either the buyer or seller (depending upon their personal credentials), they can point you in the right direction in most cases.

If you are having trouble with the paperwork portion of selling your home on your own (or buying a for sale by owner), you can also consider contacting a local real estate agent to see if they will charge a nominal fee for help with the offer/counter-offer process. Many agents will be happy to do this for a reasonable fee.

The author is involved in several online real estate businesses, including FSBO3k.com, one of the leading for sale by owner websites in the United States.