Land Contracts

wildcatgirl · #1 Nov 5, 2006, 06:59 AM

I have been trying to sell my house for six months now. My realtor's agreement is about to expire, so I thought of listing the property myself as I can sell it for less without the realtor fee. I was considering to advertise it with a land contract to attract more prospective buyers. I understand that there are new laws in Kentucky which gives the buyers more legal rights to the property if they happen to get delinquent on the payments. I understand that I would have to foreclose on the buyers should they default. What type of costs would I incur should I have to foreclose on the buyer? Has anyone had any luck with selling a home on a land contract? I was considering asking for foreclosing costs as cash down on the home, but if it is too much, there is really no since in considering it; as many people who would buy a home under land contract probably don't have any money to put down. Any answers are greatly appreciated!

Cvillecpm · Nov 5, 2006, 07:09 AM

Quote:

Originally Posted by wildcatgirl

I have been trying to sell my house for six months now. My realtor's agreement is about to expire, so I thought of listing the property myself as I can sell it for less without the realtor fee. I was considering to advertise it with a land contract to attract more prospective buyers. I understand that there are new laws in Kentucky which gives the buyers more legal rights to the property if they happen to get delinquent on the payments. I understand that I would have to foreclose on the buyers should they default. What type of costs would I incur should I have to foreclose on the buyer? Has anyone had any luck with selling a home on a land contract? I was considering asking for foreclosing costs as cash down on the home, but if it is too much, there is really no since in considering it; as many people who would buy a home under land contract probably don't have any money to put down. Any answers are greatly appreciated!

You are better off to rent with an option to buy and collect a large down payment...otherwise, get 3 comparative market analysis (CMA) from 3 other Realtors as your home may well be overpriced.

wildcatgirl · Nov 5, 2006, 07:22 AM

Unfortunatly, my house is overpriced for my area, but only because of the lot and condition. Most of the homes that are less than mine are listed as hud homes, foreclosures, AS-IS-no warranties, and so forth. I have the largest lot on my side of town as I bought the lot next to mine. My home is also move in condition. Granted, it's not the largest house in the area, but it's still in a lot better condition than all the others I have seen in the same range. I live in some what of a poor area and this was a starter home. I am afraid of renting it as my father-in-law has rental properties and they always get destroyed. I know if I could at least get someone to look at the home, I could probably close them on the deal. It's listed at almost the same price it appraised for 4 years ago, so I would hope that would help. I just need to get someone in the door on it. The market in this area is very, very dry right now.

Cvillecpm · Nov 5, 2006, 07:29 AM

Then a lease-option is your best solution since the tenant will be purchasing in a "time future" when the market will recover AND your sales price will be justified.

wildcatgirl · Nov 5, 2006, 07:31 AM

Do the same land contract laws come into effect under a lease option?



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