Tips to Sell Your Apartment Building faster

Sell Your Apartment Building – FAST!

Sell Your Apartment Building – FAST!

Sell Your Apartment Building – FAST!

An Interview with Jeff Mack of AmeriRecovery

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Jeff Mack buys rental properties from sellers who are in a hurry- often in a quickly as 24 hours. In this interview, he explains more about his business model, and his views on the real estate economy :

Q. When would a seller come to you?

A. In life, sometimes we have to do things in a hurry – not always what we want to do, but what we need to do. Maybe it’s a personal issue like a divorce, or perhaps it’s a purely economical decision. Sometimes, they just want to stop losing sleep over it. We often close in twenty-four hours, which does a lot for a person’s peace of mind!

Q. Are you a real estate broker?

A. No. I work with a private investor. We don’t work with brokers, so the seller doesn’t incur the costs of advertising and marketing. There’s no long-term listing contract.

Q. How do interest rates affect your purchase?

A. They don’t. We don’t finance through a bank – that’s why we can move quickly. As any frustrated seller knows, there are a hundred ways to lose a deal over financing. It’s also hard to weed through prospects for a qualified buyer. We don’t have to deal with any of that.

Q. How do you chose the right properties?

A. Experience has helped us develop a formula for picking the right property. It has to be in good condition, not MLS listed and in a low crime area. We work with properties that have at least two apartments.

Q. How does the economy play into your decisions?

A. That’s a sweeping question, especially for a real estate fanatic like myself. It’s that old “know when to hold ‘ em , know when to fold ‘ em ” thing. I know how to read the economy – I do my research. For instance, I know that more money is invested in real estate than all the other equity markets combined. The recent seven-year run up in real estate from 1998-2005 created the greatest bonanza in land values in our nation’s history. But easy money and credit produces investment winners and losers. The recent subprime loan implosion is such an example. I could probably write an entire article on these points alone!

To talk more with Jeff Mack, call 1-888-544-0407

Any info on buying for little or nothing down? I have had some limited success with this but need to learn more

Talk to Alan Jones. He may be able to help, or point you in the right direction. Alan can be reached at 913-322-2780.

Nice interview. I have been buying homes for 8 years and am now buying apartment buildings as well. However, I will buy in not so great neighborhoods if the price is right.

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Selling a Michigan Home: What Are My Disclosure Obligations?

Putting your house on the market in Michigan involve providing specific written information to buyers about the house's physical condition.

Before selling residential property in Michigan, a seller is required by law to tell the prospective buyer certain things about the property’s physical condition. (This comes from the Michigan Seller Disclosure Act 92 of 1993).) As a seller, you must disclose this information by completing a written disclosure statement and giving it to the buyer. (Mich. Comp. Laws Ann. § 565.951).

This information will help the buyer to make an informed decision as to whether to purchase the property and on what terms. It is important that you comply with these requirements, as failure to do so will allow the buyer to cancel the sale of the property or later sue you for fraud, if he or she discovers defects that you knew of but didn’t disclose.

Property Covered by Michigan Disclosure Regulations

The average home seller will need to fill out the disclosure form if selling residential property consisting of between one and four units. This would include, for example, a single family home or a larger building that contains up to four apartments. You must also comply with these requirements whether you are selling by a typical sale (through deed), property exchange, land contract, option to purchase agreement (including lease with option to purchase), ground lease, or a transfer stock or interest in a residential cooperative. (Mich. Comp. Laws Ann. § 565.952).

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Exceptions to the Michigan Disclosure Requirements

In some limited circumstances, sellers are not required to comply with the disclosure law. The exceptions include:

• transfers pursuant to court order, including by probate, a writ of execution, foreclosure sale, those made by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance


• transfers to a mortgagee or beneficiary of a deed of trust by a mortgagor or trustor in interest who is in default


• certain transfers by a sale under a power of sale or a decree of foreclosure


• certain transfers in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust


• transfers between cotenants


• transfers made to a spouse, parent, grandparent, child, or grandchild


• transfers between spouses resulting from a judgment of divorce or separation


• transfers to or from any governmental entity, and


• certain transfers of newly constructed residential property that has not been inhabited.

(Mich. Comp. Laws Ann. § 565.953 (a) – (i).)

Filling Out the Michigan Disclosure Statement

Michigan requires sellers to use a particular standardized form for property disclosures, called the “Seller Disclosure Statement.” (Mich. Comp. Laws Ann. § 565.957). The form is essentially a checklist asking you to indicate the condition of various features of the property (such as appliances, roof, basement, and HVAC systems) and known problems affecting the property (such as encroachment issues, environmental issues, and pending legal issues).

While some states have specifically addressed whether sellers must disclose whether a property is “stigmatized” (by death, murder, infectious disease, and so forth), Michigan has not yet specifically addressed this issue. The disclosure statement does not include this information, and instead generally limits disclosures to the physical condition of the property.

If you have a question as to whether you should disclose a particular issue, however, it is generally best to disclose than not. Otherwise, the buyer may be permitted to cancel the agreement, or perhaps worse, may one day pursue a claim against you for fraud.

You are required to present the disclosure statement to the prospective buyer or the buyer’s agent prior to signing a purchase agreement (or sales contract). (Mich. Comp. Laws Ann. § 565.954 (1)). Complying with this timing requirement is crucial, because the buyer may terminate the purchase agreement if you deliver the statement late, after signing the purchase agreement. (Mich. Comp. Laws Ann. § 565.954 (3)). In that case, your property sale will not occur.

It is customary, and general good practice to provide the disclosure statement early, for example, at open houses or when showing the property to prospective buyers. That way, you will avoid the possibility of buyer termination under this provision.

Limits on Information Michigan Home Sellers Must Disclose

The Michigan disclosure statement requires that you disclose only information about the property that you actually and personally know. (Mich. Comp. Laws Ann. § 565.956). In other words, you are not required to perform any investigation of the property in order to complete the form, and you are not responsible for reporting issues that you “should have known,” but did not know.

If you do not know certain information requested on the form, you may satisfy the disclosure requirements by checking the “unknown” box on the form. If conditions on your property change after you’ve delivered the statement to a prospective buyer -- for example, the roof springs a leak -- you should amend the disclosure statement in writing as soon as possible. (Mich. Comp. Laws Ann. § 565.962).

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There may be situations where the information you enter on the form will have come not from your own knowledge, but from what you learned from public agencies or professionals contracted to inspect the property. In such cases, you are not liable for any error, inaccuracy or omission in the information they gave you, unless you were aware of contradictory information. (Mich. Comp. Laws Ann. § 565.955 (1) – (3).)

What Happens to Sellers Who Violate Michigan’s Disclosure Requirements

If you violate Michigan's disclosure law, for example, by failing to provide a complete written disclosure or intentionally misrepresenting information, the buyer may cancel your purchase agreement prior to the closing. (Mich. Comp. Laws Ann. § 565.954 (3)). Or, if the closing has already occurred, the buyer may pursue legal action against you for fraud on the basis of misrepresentation or omission. (Roberts v. Saffell, 760 N.W.2d 715 (Mich. 2008).)The buyer may also separately sue you for fraud or misrepresentation, without relying on the disclosure laws. (Mich. Comp. Laws Ann. § 565.961).

If you are represented by a real estate agent or broker, the agent is not liable under the disclosure requirements unless acting with you in bad faith. (Mich. Comp. Laws Ann. § 565.965).

Additional Information on Michigan Disclosure Requirements

If you have a specific question about disclosure requirements, want to get the very latest news about developments in Michigan’s disclosure laws, or find yourself in situation where you need help, please consult an experienced local real estate lawyer. These laws can be complicated, and are best interpreted by professionals who handle such matters every day.

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What Forms Do You Need to Sell a House, Home Guides, SF Gate

What Forms Do You Need to Sell a House?

Mmany forms are involved in real estate transactions.

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When selling your home, in addition to preparing your home for sale and marketing your home to potential buyers, there are certain forms needed to complete the sales transaction. When hiring a real estate agent or real estate attorney, he will provide the required forms. On the other hand, if you decide to handle the sale of your house from start to finish, you have to know how to use these forms yourself. Documentation requirements vary from state to state, so check your own state's laws regarding the requirements of real estate transactions.

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Residential Purchase Agreement

The residential purchase agreement form serves many purposes in a residential home sale transaction. A potential buyer uses the form to make an offer to the seller. Once the seller and buyer seller sign it and accepts the terms, it becomes the official contract for the purchase. It details the specifications of the contract, including how much earnest money is required and when it is due, how brokers will be paid, if they are involved in the transaction, as well as the closing date.

Real Estate Transfer Disclosure Statement

A seller’s disclosure statement informs potential buyers of any defects in the property. Defects include, but are not limited to, problems with any of the major systems in the home, such as the plumbing system, heating or cooling systems or electrical systems. The seller’s disclosure notice protects the seller from claims from potential buyers that the seller hid known defects in the property. In many instances, a buyer has the right to back out of a sales contract if you do not provide a valid and current seller’s disclosure.

Natural Hazard Disclosure Statement

Sellers are also required to fill out an additional disclosure statement on natural hazards. Certain areas are prone to natural hazards such as mudslides, flooding or wildfires. The seller fills out this disclosure statement to inform buyers of potential natural hazards, so they can negotiate the terms of the purchase accordingly or decide not to pursue the purchase. A third-party professional usually prepares this disclosure statement, and it is paid by the seller.

Lead Warning Disclosure Statement

When selling a house built before 1978, a seller must provide a lead-based paint disclosure statement to comply with the federal Residential Lead-Based Paint Hazard Reduction Act of 1992. The disclosure informs buyers of any lead-based paint hazards in the home. In addition, the seller is required to give potential buyers a pamphlet on lead-based paint protection from the Environmental Protection Agency. Also, a seller must give a buyer up to ten days to do lead testing on the home and keep buyer acknowledgments for up to three years.

References (2)

About the Author

Seanna Wesson is a licensed Realtor who has been writing since 2009 for Free Real Estate Advice and other websites. Her expertise includes personal finance, small business and real estate. She holds a Bachelor of Business in management information systems from University of Texas-Austin and a Master of Business in finance and a Master of Science in real estate from University of Texas-Arlington.

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Selling A House As Is - The Pros and Cons to Consider

Selling a House As Is

Before proceeding with selling a house as is, this page covers legal aspects that may or may not apply to the area where you may be selling a fixer upper. Please proceed to My Disclaimer, before reading further.

Sometimes we may have a property, that needs a big pile of work and feel we would be better off to sell "as is".

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A few reasons for this choice may be;

• We do not have or have the access to, funds to enable us to do all the work necessary, to bring the property up to market standards.

• We do not have the time, to complete the necessary work.

We just don't "feel like" going through all the hassle of doing repairs etc.

If you were looking for something different, just select one of the photo links below.

Selling a House As Is May Not Get You Off The Hook

One of the misunderstandings that sellers have sometimes when selling a house as is, they feel completely free from any responsibility to the buyer.

As is, when it come to buying a property, means that there is a "buyer beware" situation. The buyer is purchasing the home, based on WYSIWYG, or what you see is what you get.

What is missing from this, is the full disclosure from you or me the seller.

If we do not disclose defects, that you the seller were aware of and that the buyer could not reasonably detect when buying, the buyer may be able to come back later and sue for damages. You could be liable for repair bills later, for undisclosed defects.

Keep in mind, that this is based on the fact that where you live, the seller is required to submit full disclosure when selling real estate.

Where can you get your for sale by owner contract forms? Just proceed to; Forms

A Quick Example

Lets say the following is your situation:

• The property you are selling is located in an area where the seller is required to produce a full disclosure statement.

• You have lived in the property for the past 3 years

• You sell the property during the dry summer, "as is".

• You know or should know, that the basement floods every spring with 2 to 4 inches of water.

• On your disclosure statement, you say there has never been water in the basement.

Even though you were selling the house as is, the buyer can still come back for compensation, because of the disclosure statement, which you were untruthful about.

Does that make things clearer? Just be honest, OK? A buyer purchasing an "as is" property, knows already, there are problems. Fill out the disclosure statement honestly, and you won't have to deal with headaches later.

"To the Best of My Knowledge"

The disclosure statements that I'm familiar, always state words to the effect "to the best of my knowledge".

The reason for this is there may be problems that you may not be aware of or would be expected to be aware of in certain cases.

A Visitor's Testimony

I am most appreciative of all the time and thought and effort that went into your web pages.

As an example, there could be a small leak behind the wall from the shower head in the main bath. There is no evidence of wet, or soft walls. After the buyers move in and tear the bathroom apart, they discover the damage inside the wall.

Are you responsible? In my opinion, no. You were unaware and could not be expected to be aware.

Who will Buy My As Is Property?

Be prepared! When you advertise "selling a house as is," you are looking at a whole different set of buyers. They could be;

• Investors looking for a "fixer-upper" to do some quick repairs and flip for a profit.

• Investors looking for a "cheap" dwelling to do necessary repairs and then rent for a positive cash flow.

• A buyer with low income, trying to get into the housing market with low mortgage payments and fix up the property over time.

• A "jack of all trades" that want a bargain price, live in the home, fix up and then sell down the road for a good profit.

• A buyer looking for bargain basement homes to purchase.

The lesson here when selling a house as is, is this. Expect "LOW BALL" offers! You first have to price the house at the bottom of the market at the beginning and then you will probably be hit with low, low offers.

As an example, you may have got a certified appraisal for $150,000.

You offer for sale at $140,000.

You get offers to buy from $90,000 to $130,000.

OUCH! Sorry, that can be the real life experience of selling a house as is.

Before you decide about selling a fixer upper, take a look at other possibilities.

Could you perhaps fix most, or all the problems and then sell?

If this is your principle residence, could you wait to sell for a period of time and slowly make repairs?

Perhaps, doing the necessary repairs and renting the property for a period of time, while you did the rest of the repairs.

To get the maximum exposure, you might want to list on a heavy traffic for sale by owner site. Where? Check out My Choices

Although this is a "for sale by owner site," in the case of selling a house as is, if the house is in real rough shape, you may just consider listing with a Realtor.

What did you say, Doug? I'm shocked! OK, if you have a real thick skin and can handle what you might consider insulting offers, go for it.

You also may be dealing with "professional" investment buyers, that might be able to run circles around you.

If you have a strong Realtor representing you, it may at least put a shield between you and the buyer instead of selling a house as is and having to carry the full load.

I'm including a link to realtor.com for those that want to read some more about selling a house as is.

For More Information about Good Extra Stuff

Just make a selection from these photo links 

This website was built and is maintained by Douglas F. Cameron

If you have a comment, suggestion or a question, you can go to my contact page found here.

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What Do I Need to Know to Sell My House Without a Real Estate Agent, Home Guides, SF Gate

What Do I Need to Know to Sell My House Without a Real Estate Agent?

Selling your home without a real estate agent doesn't have to be difficult.

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Have you ever thought about selling your house without using a real estate agent? While most of us would love to save the commission, the selling process isn’t easy. However, if you’re willing to invest the time and effort to do it, you could be handsomely rewarded for your efforts. It requires research, aggressive marketing and putting together a team of experts to help you get the job done.

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Knowing how to price your home correctly is the single most important factor in getting your home sold. Price it too high and no one will bother looking at your home. Price it too low and you’ll leave money on the table. Visit the local property appraiser’s website to see how much money similar homes have sold for in the past several months. To get a feel for current asking prices, visit homes currently listed in your area and check out listing websites such as Realtor.com. Keep in mind that asking prices are just that—what the seller is asking for. Pay closer attention to recently sold homes to get the most accurate pricing information.

Preparation

Your home needs to look its best in order to command top dollar. Not only will it sell for more, but it will also sell faster if it looks sharp. Add a fresh coat of paint inside and out, put down fresh mulch and landscape the yard neatly. Pay close attention to the front door area: a shiny new doorknob and accessories will make a great first impression. Inside, clean everything from top to bottom and clear any clutter from the rooms and closets. Arrange furnishings to make the rooms feel open and welcoming.

The objective of marketing is to make sure as many people as possible know that your home is for sale. Start by taking lots of flattering photos inside and out. Create an attractive flier and distribute it widely. Put a sign and flier box in the yard and hang notices at the library, at the grocery store and on community bulletin boards. Post a classified ad in your local newspaper and on online classified websites like Craigslist. Also, tell everyone you know that the home is for sale; you never know who might know a buyer.

It’s imperative that you use the right paperwork in a home sale transaction. You need to protect yourself and stay on the right side of the law, so it’s a good idea to consult with an attorney to ensure that you have a good contract and all the necessary legal disclosures.

Once you have a buyer under contract, you’ll need to begin preparing for the closing. A good closing company will help with all the details leading up to closing day. It will contact your buyer’s lender to coordinate funding the loan, it will prepare a settlement statement and other necessary documents and it will draw up a title insurance policy. It’ll also take care of recording the deed and other paperwork to transfer ownership to the new buyer.

References (2)

Resources (1)

About the Author

Jennifer McAllister has written professionally since 1985. She's written for print publications including "The Parent Pages" and "The Longboat Observer," as well as online destinations like Gadling. A registered nurse and licensed real estate broker, she holds an Associate of Science degree in nursing from the State College of Florida and a Bachelor of Science degree in general business from the University of South Florida.

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Real Estate Q - A - For Sale By Owner

Realtor homes for sale by owner

Real Estate & Mortgage Resources

Real Estate Q & A >

For Sale By Owner

IпїЅm selling my home "by owner," and a real estate agent who wants to show my home to a buyer said something about "agent protection." What does this mean?

This probably refers to the agent wanting to protect their right to a commission should you elect to sell to their client. In our home selling library, we have an article on types of listings. One of those is a "one time show." This is something the agent will probably come in and get you to sign before bringing in their clients. It identifies the client, the commission, and prevents you and that buyer from negotiating directly at a later time, with the intent to cut the agent out of the deal and not pay a commission.

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On a FSBO (for sale by owner), what is financial obligation, if any, to sell to client with buyer agent?

When a buyer's agent has a client who makes an offer to buy your home, the offer will also ask you to cover the agent's commission - either directly or indirectly. Since the traditional arrangement usually includes two agents and the customary commission is approximately six percent of the sales price, the commission asked for in this transaction should be approximately half. There is only one agent involved.

On the one hand, you save money over traditional agent marketing. On the other hand, you don't make as much as if you sold the home at its full market value. Then, on the other hand again, sellers working with agents usually get a higher price for their home than seller who work by themselves. It is a difficult decision for you to make.

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Anyway, the offer will ask you to either pay the commission directly to the agent and their broker, or apply a "credit" to the buyer so that the buyer can pay the commission. Either way it comes out of the proceeds of your sale.

We are thinking about selling our home on our own. If a buyer comes in with a Realtor do we still have to pay their agent the 3% commission?

That depends on whether you choose to "cooperate" with agents or not. If you do not, agents will not bring buyers to your house. If you do cooperate, some agents will bring buyers, but if their client makes an offer and closes the deal, they will expect to earn a commission. A three percent commission is customary, but you can attempt to negotiate, too.

Before an agent brings a client to your house, they will probably stop by and ask you to sign a "one time show" agreement. This prevents you and the buyer from negotiating directly in an attempt to not pay the agentпїЅs commission.

Where can I find information on selling my own home?

My favorite place is the local bookstore rather than on-line. However, reading through our Home Selling Library will give you lots of tips, too. Most FSBO (for sale by owner) books are quick reading and Robert Irwin is an author who has covered it a couple of times. I recommend you buy a couple of books so that you cover the topic thoroughly.

How do I make an offer on a "for sale by owner" home? I have already received pre-qualification, and am ready to buy, but need the specifics for buying from an owner, not an agent.

The owner of the FSBO should have prepared for this contingency and have the proper forms available. You can also obtain forms from your local stationery store. Plus, there is a form available on line, but they charge a $4.95 fee. The URL is below.

How do I sell my house by owner?

You want a quick answer? People write entire books on this topic and one of the better ones is "Sold by Owner," by Robert Irwin.

It's like golf - it sounds easy. You just whack the ball a bunch of times until it goes into the hole. You may land in a sand trap or go out of bounds, but if you keep whacking at it, the ball eventually goes in the hole.

Buying and selling real estate is the same way. If you are willing to do all the work, you can muddle through and get it done.

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Tax Laws for the Seller of a Contract for Deed, Home Guides, SF Gate

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Tax Laws for the Seller of a Contract for Deed

Contract for deed sellers declare interest income at tax filing time.

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In cases where qualified buyers are scarce, selling a home through a contract for deed can make sense. Homeowners might sell homes using contracts for deed because they want regular income streams rather than lump sum payments. Selling a home using a contract for deed does come with certain tax implications for sellers. For example, contract for deed sellers usually lose any property tax deductions to their buyers.

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Property Tax Deductions

Also known as land contracts, contracts for deed are installment sales pertaining to homes. A homeowner selling a home in a contract for deed retains ownership until the installment sale contract is fulfilled. However, the IRS gives the right to claim property tax credit to the buyer, not the home's actual owner. In other words, if you sell your home through a contract for deed, you usually can't deduct its property taxes.

Seller Tax Benefits

The IRS allows contract for deed home sellers to control how their capital gains is reported. Capital gains resulting from a contract for deed home sale can be reported over the years you receive principal payments from your buyer. Additionally, any interest income you receive from your contract for deed buyer can be declared as ordinary income. You report your contract for deed installment sale income annually to the IRS.

Reporting Requirements

Generally, contract for deed sellers use IRS Form 6252 to report installment sales in the year in which they take place. You also use Form 6252 during each year you receive income from your contract for deed. Attach Form 6252 to your Form 1040 and Schedule D, "Capital Gains and Losses." First-year installment sales are reported on Form 6252 on lines 1 through 4, Parts I and II; and lines 1 through 4, Part II in later years.

Smart contract for deed sellers always craft thorough sale contracts covering buyer contract forfeiture circumstances. In contracts for deed purchases, buyers receive what's called "equitable title rights" to their properties. In certain states, it can be difficult to get a defaulting contract for deed buyer out of a property if that buyer claims an equitable interest in it. Lastly, if you sell a mortgaged home through a contract for deed, the lender could foreclose if it finds out.

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How to Sell a Home in Texas

Selling a house in Texas can be simple as long as you understand the process, prepare your home to sell and ensure the right papers are ready to be signed. You can sell the home on your own but it is better to be represented by a real estate agent or lawyer.

Prepare your home for sale. If there are any repairs needed, such as replacing woodwork or painting, then be sure to finish it before showing it to an appraiser and opening for general viewing. First impressions are very important to a home buyer and an appraiser. Make sure the outside and the inside are in the best condition that you can afford. Make sure windows, curtains and blinds are clean. Spray the home with a fragrance or air freshener. Make sure there is plenty of light inside the home during the day by drawing open the blinds and curtains. Make sure lights are on if showing the home at night.

Hire a realtor. In Texas it is very important to have a person representing you as the seller. Along with making the buyer feel more at ease, the real estate agent will act as your communicator with the potential buyer. The realtor will draw up figures for you and some of the legal paperwork for both parties. For instance, one of the papers that is needed to sell a house in Texas is the Seller's Disclosure of Property Condition Notice. This will explain any problems, recent maintenance and any defects with the home so that the buyer is aware of the house's condition.

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Decide how much you want to sell the home for. Your real estate agent will draw up the amount that other homes have sold for in your neighborhood. There are usually room sizes and other features that will be included in the information about the home. You will be able to decide on a price to sell the home for. It will depend on what added features you may have compared to the other homes such as a pool. You will also need to figure into the price what improvements are needed compared to the other homes.

Have your home placed on the housing market. Your realtor will place it on a listing of homes for sale that potential buyers will learn about through their real estate agents. You will then receive bids and you can accept or reject the offer. If you reject the offer, then your agent will send your counter-offer to the buyer's agent. The buyer will decide whether or not to agree with the amount. If the buyer doesn't want to pay as much, then you can write up an agreement called the Liquidation Damage Clause. In Texas, this is to protect the seller by keeping money that was put down in good faith if the buyer backs out of the deal. There are a few exceptions in this case; the main one would be if the buyer doesn't pass requirements for a loan. In this case, they didn't decide to back out, the lender wouldn't allow them the opportunity to buy it.

Once a bid is accepted, then the house is appraised. The fee for this goes into the closing costs for which the buyer is responsible.

Go for signing and close on the home. Once a buyer agrees on the price you are offering and finds a lender to give him a loan, then you wait for the underwriters to finish their paperwork. When the paperwork is complete, the seller and buyer will sign the title. In Texas, the title can have a few stipulations that the buyer may not agree to such as a lien that is decided upon their lender. Therefore, it is best to bring the realtor or a lawyer to the signing of the title of the home for both parties. For closing, Texas requires the seller to pay transfer taxes, any left over property taxes, a third of the cost for appraisal, a title transfer tax and pay the agent's commission.

Finish selling your home. In Texas, the seller is not allowed to back out of selling the home once the contract is signed with the realtor. This agreement is called specific performance, which binds the seller to the contract to sell and must follow through unless she cannot find a buyer.

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Pros - Cons of Selling a Home on a Land Contract, Home Guides, SF Gate

Pros & Cons of Selling a Home on a Land Contract

A land contract can be a good way to sell real estate.

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Land contracts, also referred to as contracts for deeds, are a form of seller financing. When you sell your home on a land contract, the buyer executes an agreement with you to make monthly payments toward eventually earning ownership of the property. While land contract installment sales can be an excellent way to turn a piece of real estate into a tax-advantaged income stream, they also have certain drawbacks.

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Faster and Easier Closing

When you use a land contract to sell your property, you do not have to go through a bank's underwriting and closing process. This means that the buyer avoids applying and qualifying for a loan, your property avoids being appraised, and you can skip the use of certain closing services. A land contract not only speeds up the transaction, but also saves both parties money.

Ongoing Cash Flow

A land contract turns your property into a cash-flow stream. Until the buyer pays off the contract, you'll collect monthly payments of principal and interest. In the case of an interest-only contract, you'll receive monthly interest payments only with a large principal balloon payment in the future. This arrangement can be an excellent way to turn an expensive piece of property into a tool to support your lifestyle.

Capital Gains Tax Deferral

Land contracts save you from getting a large lump sum of cash at closing. Typically, any gains in your sale proceeds are going to be subject to capital gains taxes. With a land contract, you take a little bit of gain every month and, as such, spread your gain out over time. While this is usually a benefit, if the capital gains tax rate goes up, you could end up paying more taxes by extending the life of the payments out.

Limited Ability to Reinvest Proceeds

Often, the key drawback to a land contract is that the agreement ends at a certain point. When you sell your house for cash, you can reinvest the proceeds into other investment vehicles which could, theoretically, earn you money indefinitely. When the buyer pays off the land contract, though, your payment stream stops, you cease earning income, and you do not have that capital anymore.

Long-Term Exposure to the Buyer and the Property

The other drawback to a land contract is that it leaves you tied to the property. If the buyer stops making her payments, you end up being in charge of it again. You also could lose the property if the buyer fails to insure it properly or pay her property taxes. With this in mind, you need to have a strongly-written contract to protect your interests.

References (1)

About the Author

Solomon Poretsky has been writing since 1996 and has been published in a number of trade publications including the "Minnesota Real Estate Journal" and "Minnesota Multi-Housing Association Advocate." He holds a Bachelor of Arts, cum laude, from Columbia University and has extensive experience in the fields of financial services, real estate and technology.

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How To Sell A House By Owner Financing In Alabama – The Step-By-Step Guide

With changes to the economy that we’ve seen in recent years, many homeowners are discovering that there are new ways to sell their home that weren’t available before. You no longer have to sell through an agent – you can sell on your own or you can even accept seller financing. If you’re wondering how to sell a house by owner financing in Alabama , keep reading this blog post and we’ll walk you step-by-step through the process…

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Step 1. Determine whether you own the house outright or still have a mortgage

In some states, if you have a mortgage you may not be able to offer owner financing (but you can in other states). So the first step is to determine whether you have a mortgage or not.

Step 2. Talk to a real estate attorney for help in crafting an agreement

With seller financing, you are essentially acting like a bank. The buyer will pay you a down payment and then pay you regular monthly payments until the house is paid off, and then it becomes their house. So make sure you talk to a real estate attorney to ensure that you are protected and obeying all federal, local, and state laws while also protecting yourself! (If you need the name of a good real estate attorney, get in touch with us and we can make an introduction.)

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Step 3. Market your house online and offline

Once your paperwork is in place, you are ready to advertise that you have a house for sale. Be sure to let people know that you offer seller financing. There is no limit to how much marketing you should do – the more you can do, the better.

Step 4. Work with potential buyers

As your marketing captures the attention of potential buyers, work with them to show them through your house. When someone makes an offer on your house, negotiate the price and terms with them and find the middle ground that will ensure a win/win situation. Sign the papers when you and the buyer reach an agreement.

Step 5. Collect the down payment and hand over the keys

Once you agree on a price and have signed the papers, collect the down payment and hand over the keys. In most situations, you will continue to own the house and collect payments until the house is paid off, then ownership transfers to the buyer.

If you’re wondering how to sell a house by owner financing in Alabama , we can help. We might be able to offer you some advice or even work out an owner financing arrangement where we buy your house from you. Talk to our team at 205-390-1050 or by clicking here to fill out the form.

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What Happens During Closing When a House Is Sold for Cash? Budgeting Money

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What Happens During Closing When a House Is Sold for Cash?

by KC Hernandez

Buyers forgo exhaustive stacks of paperwork at the closing table when paying cash.

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What takes place during closing when a house is sold for cash resembles what takes place when you involve mortgage financing. Bypassing the often drawn-out and document-intensive home loan process has its perks, however. You have the chance to close more quickly -- and as a seller, you can proceed with more peace of mind knowing that your buyer has the money on-hand to close.

Check Yourself

Informed sellers ask buyers to prove they can afford to pay for a home in a lump sum at closing. By requiring proof of funds before accepting an offer or upon offer acceptance, you confirm fund availability. Checking for funds usually involves reviewing the buyer's bank, money market or other investment account statements for the total amount of funding needed to close. The earnest money deposit also serves as reassurance. The deposit, which is typically due within days of offer acceptance, usually ranges between 1 percent and 2 percent of the sale price, but negotiations determine the final figure.

Cash is Not King

Cash deals actually involve payment by certified funds. Coming to the closing table with a wad of bills or a briefcase with stacks of cash won't help the sale close any faster. In fact, literally paying for a home in cash violates the Real Estate Settlement and Procedures Act, which governs the formal closing process. The escrow holder requires an electronic funds transfer -- a wire -- or a cashier's check at closing for the sum of the sale price and the buyer's closing costs.

Clearing A Cloudy Title

You have several duties during the period between offer acceptance and closing. Depending on the responsibilities outlined in your sale contract, you may have to purchase a home warranty for the buyer, oversee property repairs, fill out paperwork for the title company and escrow holder and sign several legal documents. A title search pulls up liens, which may range from the expected to the unexpected. Liens include mortgages to mechanics liens, judgments and back child support. You must usually pay off all liens before closing and provide proof of payment in order to transfer a clear title to your cash buyer.

Settling for Nothing Less

You must sign final closing instructions, which the escrow holder usually provides early in the transaction. The instructions reiterate the contract's terms and conditions and outline escrow's role in the transaction. You must review the settlement statement, an itemized list of buyer and seller fees, also known as the HUD-1. Carefully review the fees for accuracy before signing off on them. You also sign a certificate of title acknowledging that you have the right to sell the home; a title deed, which transfers ownership to the buyer and records with the county; and a loan payoff statement, which shows what you owe for mortgages and must pay from the sale proceeds. At closing, you may have to come in with a check yourself if you owe your lender more money than the sale yields; you have to pay off a lien or you agreed to pay a bill through closing, such as a utility bill.

References

About the Author

K.C. Hernandez has covered real estate topics since 2009. She is a licensed real estate salesperson in San Diego since 2004. Her articles have appeared in community newspapers but her work is mostly online. Hernandez has a Bachelor of Arts in English from UCLA and works as the real estate expert for Demand Media Studios.

Photo Credits

• Creatas Images/Creatas/Getty Images

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Indiana Land Contract Laws

A land contract is a contract in which the seller finances the sale of real estate in periodic installments, rather than financing through a third party such as a bank. The buyer is typically entitled to move into the property as soon as the contract is signed, but does not obtain title to the property until he completes payments. Indiana has modified traditional land contract law to make it fairer to the buyer.

Payment Terms

A buyer may seek seller financing if he is unable to obtain credit or cannot afford a down payment. Payment terms under a land contract are typically more flexible than with third-party financing, although they are not required to be. The seller may agree not to demand a down payment, for example, in exchange for a higher purchase price. The parties have broad freedom to negotiate terms under Indiana contact law.

Possession

The buyer is typically entitled to possession of the property as soon as he signs the contract, as soon as he tenders a down payment or as soon as he pays the first periodic installment. Thereafter, the seller has no more right to enter the property than a landlord has to enter rented property. Nevertheless, since general contract law rather than landlord-tenant law applies, the parties have greater freedom to negotiate the terms of their arrangement.

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Legal Title

Legal title to the property may remain with the seller until the buyer fulfills his duties under the contract, and sellers usually insist on this. The seller is also entitled to keep physical possession of the title deed. When the buyer fulfills his duties under the contract, the seller is obligated to assist the buyer in transferring title.

Default and Foreclosure

Previously, a buyer under a land contract who defaulted would lose his entire investment, and the seller could seize the property without going through foreclosure procedures. Indiana has reformed its laws to remedy the situation where a buyer defaults after completing many payments. If the buyer's equity in the property at the time of default is "significant," as defined by the law, the seller must institute formal foreclosure procedures and must compensate the buyer for accumulated equity before repossessing the property.

The SAFE Act

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the "SAFE act") requires states to pass legislation requiring licensing for real estate loan originators. Indiana's SAFE act went into effect in June 2010. It requires parties that extend financing for the purchase of real estate, including sellers under land contracts, to be licensed. The licensing process is expensive and time-consuming. You don't need to obtain a license, however, if you sell a home you previously lived in, sell property to an immediate relative, or sell commercial buildings.

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Is it possible to sell a home in - as is - condition rather than spend the time and money to get it in - sales condition? I know - Trulia Voices

is it possible to sell a home in 'as is' condition rather than spend the time and money to get it in 'sales condition'? I know

Asked by MLE, 38058 • Tue Jun 1, 2010

in this market everyone wants the house to be in 'better than new condition'. My house was built in 96 and is in a great location.

Walking distance to Munford schools. The house note is current but there is no way I can come up with several thousand to recondition it.

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Help the community by answering this question:

Pennsylvania License #RS297130

Cindy Stys Equestrian & Country Properties, Ltd.

BTW. even with zero dollars you should be able to declutter and clean.

Real Estate in Munford

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Want Your Apartment to Sell Faster? Use These Buzzwords - Bed-Stuy - New York

Want Your Apartment to Sell Faster? Use These Buzzwords

BROOKLYN — Want your home to sell fast? Better pay careful attention to which words you use in the listing.

According to an analysis of thousands of home descriptions in Brooklyn, Manhattan, Queens and the Bronx by real estate search engine StreetEasy, the keywords you include in your real estate ad are just as important in attracting attention as your photos, price and location.

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For example, in Brooklyn, a description of an apartment like this would be catnip to would-be buyers:

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This home has the best of all worlds: classic pre-war charm — exposed brick, French doors, a wood-burning fireplace — that's been updated with a renovated kitchen. A short walk to the farmer's market and minutes from transportation.

By comparison, a listing that relies on generic phrases like "modern kitchen" or "large room" wouldn't be as attractive to local buyers, StreetEasy found.

Buzzwords can also scare buyers away, the search engine found. For example, apartments described as a "must see" or "priced to sell" typically didn't sell as quickly.

Here are StreetEasy's top keywords for each of the boroughs:

Brooklyn buyers are looking for character, so it's all about highlighting the "classic Brooklyn charm" of the borough while also noting upgrades. "Homes with a shabby-chic appeal that connects to Brooklyn’s industrial heritage resonate very well with buyers," StreetEasy data scientist Alan Lightfeldt said.

If you're listing an apartment in Brooklyn, consider these words:

Wood burning fireplace

"Besides ample amenities and storage, Manhattan buyers want peace and quiet… in a great location," Lightfeldt said, "They want to be at the center of it all, but they also want to turn it off and find reprieve when they need to."

Here are the top words for Manhattan real estate listings:

Buyers in Queens want a "relatively easy commute" to Manhattan, so playing up nearby transportation is key, Lightfeldt said. "There is a distinct appetite for convenience and connectivity in Queens."

Here are Queens' top keywords:

Successful Bronx listings are all about shining a light on communal spaces for family living, according to Lightfeldt, since buyers there are "searching for a home that provides plenty of space for a growing brood."

Here's what to highlight if you're listing in The Bronx.

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