There is alot to be said for ‘do-it-yourself’ and saving money any way you can. Conversely, the cliche ‘penny-wise and pound-foolish‘ is a cliche because it’s true — pinching pennies isn’t always wise.
So when it comes to getting For Sale by Owner documents for your real estate transaction, what makes more sense: DIY legal forms or completed, ready-for-signature FSBO documents?
There are four primary frameworks available as real estate contract options for a transaction handled without an agent involved. Let’s examine each option to see which one makes sense for your specific home sale.
Before any RealtyPact legal document can be created, the Seller and Buyer must reach a ‘real estate handshake deal’ on the basics of their transaction.
So exactly what terms must a Buyer and Seller agree upon to have that handshake?
For real estate transactions in the state of Florida, a number of legal issues and tax matters should first be considered when deciding upon the use of a Seller-Financed Mortgage Contract or a Land Contract.
For real estate transactions in the state of Ohio, a number of legal issues and tax matters should first be considered when using a Land Contract or a Seller-Financed Mortgage Contract.
In most traditional real estate sales transactions, the property being offered for sale will have an existing mortgage filed against it to secure the loan made to the Seller. The lender will have made this loan to the Seller when the Seller first purchased the property, usually for a 15- to 30-year period.
It is not unusual for the Seller to want to move or sell the property well before that 15 to 30 year mortgage is paid off in full, too.
So is a new sale of that mortgaged property by Land Contract a viable option?
Say you own a nice, mid-priced home and have been trying to sell it FSBO for several months. And say that home is located in a market not fortunate enough to be on the “Top 10 Hottest Real Estate Cities in America” list.
You’ve had plenty of showings and several people have said they love the place, but you haven’t had any worthwhile conversations past that. Comments are positive about the property and the price, but no one has made an offer.
So what’s the next step?
After months fulfilling the terms of a real estate purchase agreement under the Land Contract format, the Buyer is ready to submit the final payment to the Seller to complete the transaction.
With that payment, let’s examine the process for transferring the Deed to complete the transaction.
The down-payment amount is always negotiable between the Seller and Buyer on seller-financed real estate.
While the Buyer and Seller have sole discretion to determine the down-payment amount for their transaction, if they use RealtyPact to strengthen their deal there is one simple requirement.
Just because a property isn’t listed with “Seller-Financing Available” or “OWC” doesn’t mean the Seller wouldn’t welcome the conversation. Especially if the property has been on the market for several months!