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
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
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:
Original Source: https://sunwestescrow.blogspot.com/2019/05/the-elements-of-legally-valid-real.html
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
Whether you are considering a real estate purchase agreement as an offer, or are drafting one to purchase property, there are several terms you should know. The real estate professionals at Sunwest Escrow are here to serve as a trusted resource for those who may be new to the process of buying or selling a home. We have developed a list of elements that will likely be included in a real estate purchase agreement. We believe that all parties should be familiar with these basic terms prior to engaging in negotiations.
Original Source: https://sunwestescrow.blogspot.com/2019/02/important-terms-relative-to-real-estate.html
If you have discovered that the home of your dreams is listed as a For Sale By Owner Albuquerque property, you will need to understand how this real estate transaction is different from a home sale aided by a real estate agent or brokerage firm. The team at Sunwest Escrow has been helping For Sale By Owner sellers and buyers navigate their way around this process for years. We have created a helpful set of guidelines that will aid you as you buy a home that is listed as For Sale By Owner.
Step #1: Decide if you need to hire a real estate agent.
Just as the owner can sell their house without a real estate agent or brokerage firm, the prospective buyer can also enter into this process without representation from a real estate firm.
Step #2: Determine if you need legal representation.
Depending on the state, laws may require the seller or buyer to have legal representation during a For Sale By Owner transaction.
Step #3: See if you can get pre-approval for your mortgage.
In many cases For Sale By Owner sellers need to make quick sales. Getting pre-approved for a mortgage from a financial institution can speed up this process.
Step #4: Hire an escrow service to manage the funds.
Always invite a third party into the real estate transaction that will be responsible for the funds. An escrow account protects both the seller and buyer from a financial standpoint.
Step #5: Consider requesting a C.L.U.E. report.
This Comprehensive Loss Underwriting Exchange report can be obtained by the seller. It details any insurance claims that were made on that property within the last five years.
Step #6: Get an appraisal and inspection completed.
To ensure that you are getting a fair value, as well as a home without significant problems, have a professional appraisal and inspection completed before moving forward with the sale. Ask the seller to repair any areas that you do not believe pass the inspection report.
Purchasing a For Sale By Owner Albuquerque home can be streamlined and safe if you follow the advice in the guidelines above. For more information concerning the For Sale By Owner process, contact Sunwest Escrow today.
Original source: https://sunwestescrow.blogspot.com/2019/02/guidelines-to-buy-house-through-sale-by.html
Sunwest Escrow, the real estate contract Albuquerque resource, has identified five facts that we believe all potential home buyers and home sellers should know before entering into a real estate transaction.
Fact #1: All contracts are negotiable by the buyer and seller.
Although a real estate contract is drawn up, that does not mean it cannot be modified. The buyer and the seller have the right to request changes to these documents as they move forward with the real estate transaction.
Fact #2: The buyer can ask for a home sale contingency to be added to the contract.
A home sale contingency clause is a modification to a contract that states that the finalization of the contract is contingent upon the sale of the buyer’s initial home. This protects buyers who were planning to use their home’s sale to finance their next home purchase.
Fact #3: The buyer can also ask for a right of first refusal clause to be added to the contract.
Drawn up before the house is put on the market, the right of first refusal allows the seller to market the house however they want but the original interested buyer gets the first option to purchase the property should other potential buyers want to make offers.
Fact #4: Inspection, appraised and financing contingencies can also be added.
An appraisal contingency ensures that the home is valued at a minimum amount, if it isn’t, the buyer can pull out. The inspection contingency allows the buyer to request repairs or pull out of the sale should an inspection report come back unfavorably. A financing contingency lets the buyer back out of the sale if they are unable to secure adequate financing.
Fact #5: Kick-out clauses can be added to protect sellers.
A kick-out clause protects sellers against home sale contingencies, allowing them to continue marketing the home to find other qualified buyers. If one is found, the seller can request that the original interested buyer remove the home sale contingency or forfeit the offer.
It’s important that buyers and sellers remember these five facts prior to entering into a real estate transaction. For more real estate contract Albuquerque information, call Sunwest Escrow today!
Original Source: https://sunwestescrow.blogspot.com/2019/02/5-facts-about-real-estate-contracts.html
Owner Financed Homes in Albuquerque
In today’s real estate market, many owners are selling their homes with only the help of an escrow company. These sellers could also offer to finance the home for the buyer. This enables the buyer to avoid getting a loan from the bank because the original owner will lend the buyer the total purchase amount.
Owner financed homes can help both the buyer and the seller. The buyer has the advantage of a faster closing process with lower closing costs, a flexible down payment and the ability to work directly with the previous owner until the contract is fulfilled. The seller also benefits because they can sell the home faster, minimize carrying costs and use the buyer’s down payment to pay their own debts or put a down payment on another property. But before offering owner financing, Sunwest Escrow of Albuquerque believes that there are a few points both buyers and sellers should know.
Points to Keep in Mind Before Offering Owner Financed Homes
Owner financing can be a beneficial way for buyers and sellers to conduct a real estate transaction, however, they must be aware of the pros and cons of the process. For more information about owner financing options, call Sunwest Escrow at Albuquerque today!
Original Source: https://sunwestescrow.blogspot.com/2019/01/points-to-keep-in-mind-before-offering.html
Now is the perfect time to sell your home. Instead of using a real estate company, homeowners can work with an escrow agent to quickly and conveniently sell their property. Sunwest Escrow, New Mexico’s most trusted escrow company, believes that many homeowners can benefit from For Sale by Owner Albuquerque listings.
Why You Should Go for Sale By Owner?
1: You Know Your Neighborhood Better Than a Realtor
You’ve lived in your home for years, maybe even decades. Not only do you know the ins and outs of your home, but you also know the community and the neighbors. For homebuyers, “the perfect home” is much more than just the home itself. Buyers want the home of their dreams to be in a neighborhood that aligns with their needs, values, and lifestyle. A realtor may know the area, but unless they’ve lived on your street, you as the homeowner are the expert in this field.
2: You Don’t Need to Spend Money on a Service You Can Accomplish Yourself
Today’s technology gives you access to all the tools and resources you need to successfully sell your home. Think of a real estate agent as a middle-man in the process — they’ll get you from listing to close, but it will cost a premium. However, you can list and sell your home on your own, avoiding that unnecessary expense.
3: You Know What Your Home is Worth
During the negotiation or listing process, a real estate agent may encourage you to lower your asking price or make certain deals as incentives to the buyer. You deserve top dollar from your home. An appraiser can provide you with the current market value of the property and you can list the home at a price you believe it’s worth.
For Sale by Owner Albuquerque
You can successfully list and sell your home without a real estate agent. Contact Sunwest Escrow today and allow us to help you through the contracts and financing process on your For Sale by Owner home!
Original Source:- https://sunwestescrow.blogspot.com/2018/12/why-you-should-go-for-sale-by-owner.html
Sunwest Escrow is here to help you through the home buying and selling process. We’re available to answer all your questions regarding real estate contracts and owner financing. We recommend that all prospective buyers and sellers first understand the details of a real estate purchase agreement and why it’s perhaps the most important contract in the transaction.
The Need of a Real Estate Purchase Agreement
A real estate purchase agreement, also referred to as a real estate contract, is a key part of your real estate transaction. This is a written contract between buyer and seller confirming that the property will be sold for an agreed-upon amount. To be legally classified as a real estate purchase agreement, this contract must meet four specific requirements:
What to Verify on a Real Estate Purchase Agreement
There are other items that should be listed to ensure that the buyer and seller both understand and agree to the vital details of the contract. We insist that your real estate purchase agreement should contain the following seven items:
Real Estate Purchase Agreement Albuquerque
When the time comes for you to buy or sell a property, trust Sunwest Escrow to create the detailed real estate purchase agreement in Albuquerque that buyers and sellers can invest in.
Original Source :- https://sunwestescrow.blogspot.com/2018/10/need-of-real-estate-purchase-agreement.html
Why Opt for Owner Financing Homes Albuquerque?
Instead of borrowing money from a commercial lending office and obtaining a mortgage, a buyer can choose to purchase an owner financed home. During this process, the current property owner lends either a portion or all the funds required for purchasing the house. This is becoming a popular alternative to normal real estate transactions, especially in times when the area is considered to be in a buyer’s market.
Types of Owner Financing
There are many types of owner financed homes. The three most common are land contracts, lease-purchase agreements, and mortgages. Land contracts provide the buyer with an equitable title until the buyer has paid the owner for the full amount of the property. At that time, the new owner would then receive the deed.
The seller and buyer could also choose to commit to a certain type of mortgage known as an all-inclusive mortgage or all-inclusive trust deed. In these instances, the seller carries the mortgage and receives an interest override on the underlying loan that accompanies the mortgage. In cases of a junior mortgage, the seller carries the first new mortgage and the buyer takes out a second mortgage to give to the seller as payment.
A third option is a lease-purchase agreement which essentially leases the property to the buyer. The buyer gets an equitable title and will receive the full title after paying the seller the full purchase price for the property.
Pros of Owner Financed Homes
Sunwest Escrow is ready to help you secure the owner financed homes Albuquerque has to offer. Opting for an owner financed home will provide you with many benefits including a faster close and better financing options. Speak with one of our knowledgeable escrow agents today to learn more about this advantageous buying option.
Original Source: - http://sunwestescrow.blogspot.com/2018/09/why-opt-for-owner-financing-homes.html
Sunwest Escrow, Inc. is a customer-oriented servicer of private mortgages, real estate contracts, and other installment type notes. Sunwest Escrow, Inc. was formed by the owners of Sunwest Escrow, LC in order to provide a wider range of financial products.