One of the first steps to selling your home is deciding how you are going to do it -- are you going to hire a realtor or are you going to try to sell it on your own?
Experienced realtors bring a lot of value to real estate sales transactions and you may choose to hire a realtor for one or more of the following reasons. Realtors are very familiar with the sales process and can lead you through the process step-by-step. Realtors are knowledgeable with respect to market values and can help make sure that your home is priced correctly, which is very important to selling your home. Realtors have access to the Multiple Listing Service (MLS) and other marketing tools and can effectively advertise your property for sale. Realtors also network with other realtors who have clients ready to buy.
If, however, you have already identified a buyer for your home, you may wish to retain an experienced real estate lawyer to represent you and help get the deal closed. Real estate lawyers can prepare the purchase contract, provide you with the real property disclosure forms that are required by law, conduct a title search, and prepare and/or review the closing documents, and conduct the closing. Real estate lawyers are particularly helpful if you choose to sell your home in a manner other than in an absolute sales transaction.
In an absolute sales transaction, the buyer pays the seller the purchase price at closing (often from the proceeds of a mortgage loan) and obtains a deed to the property. The other ways in which a seller can sell his/her home is by way of:
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A land contract is an alternative to traditional real estate financing by a bank or mortgage company. Under a land contract, the seller agrees to sell the property for a fixed purchase price. The buyer agrees to make a down payment on the purchase price at closing and then pay the balance of the purchase price with interest over time. The term of the land contract is negotiable between the parties and can require that the buyer payoff the land contract with a traditional loan in a few short years or it can be drafted so that the buyer makes payments to the seller for ten to thirty years. Once the land contract is paid off, the seller gives the buyer the deed to the property. Until then, the buyer is considered the equitable owner of the and is responsible for carrying insurance, paying the real estate taxes and paying for all maintenance and repair. Our company and the attorneys at Dagger, Johnston, Miller, Ogilvie and Hampson, LLP can provide services with respect to drafting a land contract, conducting a title search on the property, recording the land contract, and enforcing the terms of the land contract through either a forfeiture or foreclosure action, if necessary.
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Lease options or leases with an option to buy are similar to land installment contracts. In a lease option, the buyer agrees to rent the property from the seller under a traditional lease agreement. In addition, the seller gives the buyer an option to purchase the property under the conditions set forth in the lease. The buyer is not obligated to purchase the property, but has a right to do so and, if the buyer exercises that right, the seller must sell the property. Typically, lease options allow a portion of each rental payment to be applied to the purchase price, at closing.
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If a buyer is not able or does not want to obtain financing from a bank, mortgage company, or other lending institution, and the seller is agreeable, the buyer may promise to pay the seller the purchase price over time. In that case, the buyer will sign a promissory note and mortgage, at closing, in favor of the seller. The promissory note will set forth the parties' agreement as to the interest rate, the monthly payment, and the term of the note. The mortgage will ensure that the property is pledged as collateral for the loan so that in the event of a buyer default, the seller may, foreclose on the property, similar to a bank.Our company and our staff attorneys can provide a full range of services for people wanting to sell their home on their own, including contract negotiations, contract drafting, assisting with a buyer's due diligence, conducting a title examination, reviewing the closing documents, assisting with the closing and disbursement of funds, and recording the deed after closing. Please call 740-653-6464 to speak to our attorneys, Carrie Lott or Bryan Everitt at Dagger, Johnston, Miller, Ogilvie and Hampson, LLP or visit www.daggerlaw.com.
Our company and our staff attorneys can provide a full range of services for people wanting to sell their home on their own, including contract negotiations, contract drafting, conducting a title examination, preparing the closing documents, assisting with the closing and disbursement of funds, and recording the deed after closing. Our attorneys can also represent buyers with respect to contract negotiations, inspections and other due diligence matters, and reviewing the title commitment and the exception documents referenced in the title commitment.
Please call (740) 653-6464 to speak to our attorneys, Bryan Everitt at Dagger Law, LLP or visit www.daggerlaw.com.