FSBO: From the Seller’s Point of View

“For Sale By Owner” — You’ve surely seen these signs throughout Albuquerque and surrounding communities. However, you may have only learned about this home-selling method from the perspective of the buyer or an escrow agent. At Sunwest Escrow, we believe that all homeowners should be informed of this option before they even think about selling their home. By examining the advantages of listing a home without the traditional help of a real estate company, you can discover the benefits of For Sale By Owner  from a seller’s point of view.

Why Sellers Use “For Sale By Owner” Options?

There are many reasons why these individuals choose to forego help from a real estate company, including:

• They want to save on real estate broker commission fees.
• They will allow the buyer to choose owner financing.
• They need a quick, short sale of their property.
• They have sold a home on their own previously.

6 Steps Sellers Take in For Sale By Owner Preparations

For an owner to list their homes correctly, there are a few steps they’ll need to follow:

1. They must price their home accordingly, researching comparable home sales over time and considering the other similar homes currently for sale in the area.
2. They need to stage the home for viewing, which may include cleaning the area, removing their own possessions and incorporating staged furniture from a professional staging company.
3. They need to create an attractive listing which discusses the benefits of the home and includes great photography.
4. They need to understand New Mexico seller disclosure laws which may include telling potential buyers about any hazards currently or previously in the home’s structure.
5. They need to communicate with the buyer’s real estate agents and develop a positive relationship.
6. They need to enlist the help of third-party experts like attorneys or escrow services to help complete the legal documents and filings.

For Sale By Owner Escrow Services in Albuquerque

If you are interested in learning more about the For Sale By Owner benefits and process from the seller’s point of view, feel free to give Sunwest Escrow Inc. a call. We are here to answer all of your questions and make the home-selling process as smooth as possible.

Original Content posted on https://sunwestescrow.blogspot.com/2019/07/fsbo-from-sellers-point-of-view.html

Types of Buyers Involved in Owner Financing Homes

 

As trends in the real estate market change, more and more buyers are choosing not to work with a real estate agent or traditional mortgage lender. Instead, many of these men and women decide to enlist the help of an escrow service and seek out properties that offer owner financing options. For Sale by Owner homes are quite common and offer a number of advantages to buyers in unique situations which would otherwise prevent them from securing a mortgage through a bank or loan agency.

When it comes to owner financing homes in Albuquerque, Sunwest Escrow knows that these properties will fly off of the market fast. If you are looking to purchase a new home, or if you are a seller hoping to finance your prospective buyer, we believe that all parties should know which types of buyers are typically involved in owner financed homes.

Four of the most common buyers that choose owner financed homes include:

• Buyers who cannot qualify for a mortgage through a bank. These individuals may be self-employed and cannot provide steady income or have a new job which prevents them from providing documents that meet lender guidelines.
• Buyers who want a fast closing. One of the benefits of owner financed homes is that neither party needs to wait through a long closing period with a third-party lending office. Often, the buyer can move into the home within days of the transaction being finalized.
• Buyers who do not want to pay substantial loan costs. Another benefit is that the costs for owner financed homes rarely add up to the fee charged by conventional mortgage lending agencies. Buyers can save potentially thousands of dollars simply by choosing owner financing.
• Buyers who have a low credit rating. Even though the buyer with a low credit rating may choose an owner financed home because they cannot secure one through the bank, this also helps them establish and build their credit as they make monthly payments to the owner.

To learn more about owner financing homes in Albuquerque, contact Sunwest Escrow today.

Original Source – https://sunwestescrow.blogspot.com/2019/07/types-of-buyers-involved-in-owner.html

How Does Owner Financing Work?

For Sale By Owner — you’ve seen the signs outside of dozens of New Mexico homes. These signs tell you that the home is for sale, however, what many homeowners and homebuyers don’t know is that FSBO homes are a little different than traditional home sales. One aspect of this transaction that is different is the concept of owner financing. At Sunwest Escrow, Albuquerque, we believe that both homebuyers and homeowners should be aware of all elements involved in a For Sale By Owner home. That’s why we’ve created this helpful explanation that covers an important topic — owner financing.

How Does Owner Financing Work?

Both the homebuyer and the homeowner have many options to consider when determining how the property will be financed. As one of the largest financial decisions that an individual makes throughout their life, it’s important that you consider all options thoroughly before making a final choice. Owner financing is an option that is appealing to both parties for a number of reasons.

The concept is also known or referred to by other names — seller financing, owner carried financing, owner carryback, and the owner will carry. Regardless of which term is used, they all represent the same concept. Unlike a traditional home sale in which the buyer borrows money from a financial institution like a bank or lender, owner financing provides an alternative option. Instead of obtaining a mortgage from the bank, the homebuyer goes directly to the owner and receives credit from them. The buyer then makes payments to the seller, in addition to the initial down payment to purchase the property.

This concept presents advantages for both parties. For buyers, it gives them the opportunity to close the home faster. With no bank affiliation, this close is often cheaper as well. It’s also a perfect opportunity for buyers who cannot secure a mortgage, or who require flexible payments, to purchase a home. For sellers, it enables them to retain the title of the home if the buyer defaults. It also allows the seller to sell the home as is which saves them time and money.

Scheduling an appointment with Sunwest Escrow today and learn more about the various advantages of owner financing in Albuquerque.

Original Source- https://sunwestescrow.blogspot.com/2019/05/how-does-owner-financing-work.html

The Elements of a Legally Valid Real Estate Contract

While buying and selling real property is a major milestone for most individuals, many parties that engage in real estate transactions are not formally educated on real estate contracts. This comes as no surprise — a family may only purchase real estate two or three times over the course of their lives. Sunwest Escrow — your real estate contract specialists in Albuquerque — believes that all individuals purchasing or selling a piece of property should have a basic understanding of the aspects that make a real estate contract legally valid. We’ve identified the following elements which are necessary for legally valid real estate contracts.

The 3 Most Important Elements in a Legally Valid Real Estate Contract

1. The property must be exchanged for money or something else of value.
2. An offer must be made by the buyer, the seller must accept the offer, and both parties must agree to all contingencies.
3. A real estate contract must be written. Most state laws require all real estate contracts to be written and agreed to formally in writing.

Other Important Elements in a Legally Valid Real Estate Contract

At its core, a real estate contract must be a written document detailing the conditions of a sale of property that have been agreed upon by the buyer and seller. However, there are many other elements that also make these contracts legally binding, including:

• All parties must be of legal age. In accordance with state laws, a minor cannot legally enter into a contract or that contract will become invalid.
• All parties must be of sound mind when signing the contract. Individuals who are mentally incompetent or who are under the influence of alcohol or drugs will invalidate a contract if they sign it.
• All information about the sale must be provided on the document in legal terms that are easily understood by all parties.
• All details of the sale, including purchase price, contingencies and other relevant information, must be listed on the contract.
• All agreements within the contract must adhere to all local, state and federal laws. A contract which involves any illegal activity is not legally valid.

Sunwest Escrow in Albuquerque, NM is the most loyal and trusted escrow company among title companies and real estate brokers. For more information concerning what makes a real estate contract legally valid, contact the real estate contract specialists at Sunwest Escrow today!

Original Source: https://sunwestescrow.blogspot.com/2019/05/the-elements-of-legally-valid-real.html

 

Owner Financing: The Best Real Estate Technique for Home Buyer

As a buyer, there are plenty of options available when you plan to purchase a home. However, securing a mortgage from your bank can present you with high-interest rates. Renting to buy is not a preferable option either. In fact, the best way for buyers to purchase a real estate by owner financed homes.

Also known as seller financing, owner financing is a real estate technique that can be extremely beneficial for home buyers. Instead of acquiring a mortgage from a commercial lender like a bank or another financial institution, the prospective homebuyer has the option to finance the home with the help of the property owner themselves. The seller supplies all or a portion of the money needed for the homeowner to purchase the home. Essentially, the buyer is taking a loan from the seller.

Types of Owner Financing Albuquerque

Since the agreement is between the buyer and the seller only, the type of owner financing the parties agree to can take many forms. Three common versions include mortgages, land contracts and lease-purchase agreements.

A seller can decide to carry an all-inclusive mortgage, in which they carry the entire balance of the purchase price, or they can carry a junior mortgage, in which the buyer would give the seller a second mortgage in addition to the original mortgage while receiving the title.

Land contacts allow the seller to retain the title of the property while the buyer receives an equitable title until the total payment is complete. Lease-purchase agreements are similar to lease-purchase car agreements. The buyer commits to a set number of payments and receives the title after these payments are made.

Why Owner Financed homes is the Best Real Estate Technique for the Home Buyer

The benefits for buyers using the owner financing technique are advantageous compared to other forms of financing. Whereas financial institutions can deny funding if qualifications are not met, the seller can work with the buyer and come to a compromise. These parties can also define their own repayment options and terms that most financial institutions will not negotiate. Closing costs for owner financed homes are much lower without the fees associated with financial institutions. Closing on the property is often much faster as well because of the absence of a third-party lender.

Owner Financing Homes Albuquerque

For more information about owner financing homes in Albuquerque, call Sunwest Escrow today.

Original Source: https://sunwestescrow.blogspot.com/2019/04/owner-financing-best-real-estate.html