Posts Tagged ‘Real Estate Contracts’

Selling your house during an economic recession can a bit overwhelming at best. The need to dispose of the monthly mortgage on your existing home is usually compounded by your next move or the move you have already taken.

During a recession, yes, let’s call it what it is, you must first realize you are not alone. The only thing that you are alone with is your existing personal debt. That being said, you want to sell your house and like yesterday, right?

When selling your home during any economic conditions you need to assess your local real estate market conditions. While the country as a whole may be facing a negative real estate market condition, your local are could be maintaining a more encouraging market. If there is a growth underway in your area commercially, this could improve your residential market results.

Let’s talk about the worse case scenarios. Your local area has seen no significant commercial growth or worse, there have been industrial businesses close and layoff a sizeable workforce. This is the bleakest of times and you are affected.

Keep in mind, there are options available to you and your family’s blight. One consideration in selling your home is to avoid listing your house for sale through a real estate company or agent. This in itself, will allow you to price your home below the local market value. Selling without an agent can be a bit scary, as far as knowing what to do and how to conduct a sale of real estate. Fear not, you can find generic real estate contracts online for your given state.

Selling your house by owner has both positive and negative consequences. The positive is; you control the entire process of selling, and the negative is; you have to do all the work involved in getting your house sold.

Here are 10 sure fired ways to sell your house during a recession:

1. Acquire the documents that are required to legally sell your house, such as a legal sales contract for your state, a certificate for inspection of your septic tank, if you are not on a city sewer system, and a home inspection to assure your buyers that your home has been inspected for any defects.

2. Check in your area for similar size and amenity houses that are for sale or have recently sold, to assure you that you will price your house accurately.

3. Decide on a sales price, less than comparable houses for sale in your immediate area. You could ask a real estate agent to price your home at current market value. Offer the agent a 3% commission or a flat sales fee if he/she can produce a buyer. DO NOT sign any written agreement with an agent or real estate company.

4. Determine where houses are advertised for sale on a consistent basis, your local newspaper, traders post, or local cable channel. Some weekly newspapers have a specific day of the week when agents run more ads, choose that day to run your ads.

5. Run ads that standout! ZERO DOWN! BELOW MARKET! IMMEDIATE POSSESSION! NO CLOSING COSTS! BUY THIS HOUSE PAY LESS THAN THE COST OF RENT!

6. Locate a local real estate attorney and have him/her explain what costs are involved for a specific sales price, for both you and your buyer and have them explain how much you can legally pay on behalf of the buyer to assist them in their purchase.

7. Be willing to accept a second mortgage for your equity. This is where you are willing to be paid your equity over time, or at a delayed point in time, so the buyer who wants to buy your house but hasn’t got the immediate cash required to pay your equity amount. They can do so in increments over time based on your stipulations.

8. Offer incentives to your buyer. Think about including a boat, a car, a truck, an RV, that you own, to be a part of the sale of your house. Tempt them with something extra. Recently in Wisconsin, a homeowner was willing to include 2 season tickets to all the home games of the Green Bay Packers. If you are not aware, they are sold out for years in advance.

9. Accept offers of a car, a boat, an RV, or whatever a buyer may have, that you could sell later, after the house is sold. This offer could be a down payment tool for the buyer.This could be a value toward your equity that you can liquidate later and create your equity recoup in that method.

10. Make sure you stipulate to your buyer that they show written proof from a bank or mortgage company that they are good to purchase, before drawing up a sales contract, or make it a condition of the contract, if the buyer doesn’t want someone to go ahead of them on the purchase of your house.

Keep in mind that as long as there are people getting married, getting divorced, or changing jobs, they all need a place to live and you have what someone else wants. During desperate times, desperate measures are required. Focus on the ‘have to do’, and don’t let sentimental value be a part of what must be accomplished. There will be better times and using your intelligence to let go, to move on, is the right path to take. Sell your house, lighten your burden, and make it a good decision for the times you are currently living.

Be creative, informative, and smart, he who takes on a challenge in desperate times lives to see better days ahead. Patience and persistence does pay off.

Visit: http://wealthsmith.com/mortgage-rates.htm

Jim is a retired real estate agent, after 17 years in the real estate market, and has seen many people buy and sell their homes with creative techniques. To further expand your knowledge of the real estate business and how you can be more informative to your buyer, check out

http://wealthsmith.com/mortgage-rates.htm

Author: Jimmy Wilson
Article Source: EzineArticles.com
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There is one simple reason that people sell real estate notes, and that is to raise cash quickly. To achieve the desired result, however, you must make sure you’ve done your research: that you are selling to a reputable buyer or group of real estate note buyers, and that the buyer of the property you are financing has a reputable credit history.

A real estate note is the document created when financing the sale of a home or other (likely investment) property. Different categories of real estate notes include mortgage notes, land real estate contracts, and contracts-for-sale. Holding a real estate note means that payments are coming into you, but often, depending on the financing, those payments are small and trickle in, rather than providing a quick influx of cash. This is the reasoning behind selling to note buyers.

There are a couple of options when selling real estate notes. When choosing between these options, take into account your goal in selling the note. If you only need a smaller, quick influx of cash, it might be in your best interest to only sell a portion of the note. If you need something more substantial, you will likely want to sell the entire note. Whichever happens, the payments made by the buyer are the same-they will just make the payments to the new note holder instead of to you.

Selling only a portion of the note means selling “x-amount” of payments to the real estate note buyer. Many buyers will do this, but others will not, so be up front with how much of the note you would like to sell at the beginning.

While you will likely not get the true face value of your real estate note if choosing to sell it, there are other things to keep in mind when selling that will make sure you get as much value as you can out of the note. First, and most important, is that when selling, you should pay no up front fees to buyers. Most reputable buyers will check your buyer’s credit and give you a quote on the note without charging you any sort of “processing” fee.

Make sure that the note buyer checks the property buyer’s credit up front before quoting you on a price for the real estate note. A sign of an unethical buyer is quoting one price initially, then quoting a lower one later using the property buyer’s credit score as an excuse. This is a simple bait and switch and a strong sign that you should not deal with these real estate note buyers.

Get several quotes before selling. This can help to ensure you get the best value for your note. If possible, it is best to wait until at least six payments have been made on your note before attempting to sell; this is because buyers will be more likely to pay a higher price for a note that is considered “seasoned,” knowing that the property buyer is reliable in making payments.

Chances are, you will get somewhere between 20 and 30 percent less than the remaining value of payments due on the note. This is fairly standard, and though the discount seems steep, it is probably the best value you will get on the note. If you have not received an offer that is satisfactory, you can hold out until your note is more “seasoned.”

Selling notes that you hold can be a good way to get a quick influx of cash. Just make sure that you’re careful and don’t rush into it, and it can be beneficial for you and for the note buyer.

Stephen V. Richards is a real estate expert specializing in advising sellers and brokers on the best times to sell real estate notes to real estate note buyers. He has weathered the mortgage storm and advises a number of successful clients on managing their real estate contracts.

Author: Stephen V. Richards
Article Source: EzineArticles.com
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