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    YetPraising's Avatar
    YetPraising Posts: 4, Reputation: 1
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    #1

    May 30, 2008, 03:37 AM
    Owner Finance
    I need to sell my house in a short period due to relocating. My payoffs are more than I expected and I don't believe that I can list the house with a realtor and get what I need to pay the house off. Is owner-financing the best option or should I get an appraisal to see how much the house will appraise for then set a price?
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #2

    May 30, 2008, 07:50 PM
    How long have you owned the house? You could owner finance or rent.
    YetPraising's Avatar
    YetPraising Posts: 4, Reputation: 1
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    #3

    May 31, 2008, 09:52 AM
    I have owned my house for 3 years and 3 months.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #4

    May 31, 2008, 01:12 PM
    Can you rent the home?
    YetPraising's Avatar
    YetPraising Posts: 4, Reputation: 1
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    #5

    May 31, 2008, 03:13 PM
    I prefer to sell but renting may be an option. Lease purchase is also an option. I just want to do the best thing that will benefit me and a potential homeowner.
    progunr's Avatar
    progunr Posts: 1,971, Reputation: 288
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    #6

    May 31, 2008, 03:26 PM
    Do some serious research before you decide to become a landlord.

    Try to find an older movie called "Pacific Heights" to rent and view. Yes, it is a fictional account but follows so close to what can happen to a landlord, it is a good watch.

    What about "for sale by owner"?

    The average cost for this service was around the $1100.00 range when I used them about 5 years ago. They put my home on the internet, provided signs for the yard, and handled all the legal paperwork. Might be worth looking at, even though we are in a much different situation in the housing market now, than 5 years ago.

    I wish you the best of luck with it!
    YetPraising's Avatar
    YetPraising Posts: 4, Reputation: 1
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    #7

    May 31, 2008, 03:46 PM
    Thanks. I just registered with them. I really don't want to be a landlord so hopefully I can get it sold before I have to relocate.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #8

    May 31, 2008, 05:07 PM
    First having a rental home and being far always is hard, what happens when the sink is leaking, what happens when the air conditioner does not turn on next month. When they move out and the carpet is ruined and there are a few holes in the wall ( and this is after them not paying you for 3 months and you having to evict them) what do you do, can you go for several months with no rent?

    not saying it will be like that but it can be.

    Before you do anything, you need to get the home appraised, since house values have droped greatly over 3 years in many area.

    next the difference between selling with a real estate agent and you selling it yourself is about 6 percent of the cost.

    With a ower finance it is best to find someone with a high down payment , which is hard, if you are trying to sell your house for higher than normal.
    At times some people are even selling their homes for a little less than they owe and getting a small personal loan to pay off their loan, at least they get out of it. So a lot will depend on how much of the home you borrowed money on, if you did a 90 or more percent loan you could well have a problem. But first get it appriased, and have a couple of real estate brokers come out and give you an idea of a price they can get for a sale in the time frame you needed.

    In the end how much it will sell for, will determine what you can do.

    Remember if you are the mortgage holder, know what happens if they stop paying and how long it will take to foreclose.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
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    #9

    Jun 1, 2008, 08:20 PM
    Quote Originally Posted by YetPraising
    Thanks. I just registered with them. I really don't want to be a landlord so hopefully I can get it sold before I have to relocate.
    Is it safe to assume that you just registered with a For Sale by Owner service? If so, here are a couple thoughts...

    1. Be realistic. Many list with these services thinking they can make more money on the sale. Regardless of the commercials on TV, you don't really MAKE more by doing it yourself unless you are a pro at marketing. Very often, they say things like "I saved $12,000 in commissions by selling it myself" and leave off that they accepted $20,000 less than they could have gotten. About 90% of all FSBO homes are eventually listed and sold by a real estate agent...

    2. A Realtor gets paid if they sell your home. For the most part, you have already paid for the FSBO service upfront and have lost it whether you sell or not.

    3. Since many buyers are looking on the internet for a home, make sure you are posting there and that your pictures are very good. I poor picture will keep people from pursuing a beautiful house, as they will not give it a second look. Have you considered a home stager?

    4. If you want to sell quickly, consider giving a buyers agent a 2-3% commission. Many RE agents will not show a home if they are not going to get paid for the sale. A lot of the buyers that are not using an agent are VERY smart and can take advantage of you. Be careful.

    5. Finally (there is more, but I'm done), not all RE agents are alike. The good ones do well financially by being a great resource for their clients. For instance, will you accept FHA financing and/or conventional? Are you willing to assist the buyer with closing costs and prepaids? How about a DPA program? Can you offer a home warranty? Do you work with a loan officer who can provide marketing assistance, interest rate buy-down programs or other creative financing? These are questions you may be asked, so be prepared.

    Just a few thoughts. I'm not saying that you must use a Realtor, but the good ones are an investment, not an expense; especially if you are trying to sell in a hurry.

    LG

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