FOR SALE BY OWNER CHECKLIST QUESTIONNAIRE
By Jonathan Blackwell
http://ascenthomeloans.com
1. Do you have experience in writing a purchase contract on a residential mortgage sale?
2. Have you selected an escrow company, title company or attorney to serve as the 3rd neutral party in your transaction?
3. Have you considered what time contingencies you will provide the potential buyer for:
                        a. Loan Approval
                        b. Home Inspection
                        c. Termite Inspection
4. Do you have a system in place to ensure that you are entertaining offers only from Read more

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The Ultimate Guide to FSBO: 100 Tools and Resources 

Posted with the permission of Brian at http://www.intlistings.com/

According to the National Association of Realtors, the typical FSBO ( For Sale By Owner) home sold for $187,200 compared to $247,000 for agent-assisted home sales this past year. And, almost half of those sales were made through yard signs and through friends and family. But, not all home sales are that simple. Almost sixteen percent of home owners stated that the paperwork was the worst part of the selling experience, and a full eleven percent couldn’t get the right price.The worst part of the home selling experience, according to eighteen percent of the home sellers, was preparing and fixing up the home for sale . Staging, open houses, curb appeal and more can be trials filled with tons of errors when home owners don’t know what they’re doing. So, we figured that a good list of contractors, home improvement ideas, thoughts on how to sell a home and more was needed. This list provides those tools and more. The topics listed below are in alphabetical order, and the sites listed within those categories also are listed in alphabetical order. So, please don’t take the numbers as a ranking.

To access those 100 home selling tools and resources, click HERE.

 

 

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In my previous blogs, I wrote about how to do owner financing and lease option by example. Questions were raised on how should you determine to sell your home with lease option or owner financing.

There are at least 7 important factors you should consider. They are the guidelines to help you made decisions.

1. Hate the fact to be a landlord

If you hate to be a landlord and want to sell it, you should not do lease option. Although lease option is much better option than lease only, you still have somewhat responsibilities as a landlord.  If you hate that, you should not do lease option.

2. How long you can wait to sell your home

If you cannot wait for than 12 months to sell your home, you should not do lease option.

3. Down payment

If you want to do owner financing, you should consider the possibility to get 10% down payment or you should do lease option. You can market your home both ways, that is, lease option and owner financing, and let the market tell you how much down payment you can get. You can ask potential buyers how much down payment they can make if they are interested in owner financing.

4. Collateral

If buyer is an investor, they are usually not willing to put 10% down. But, most investors may have other investment properties that can be used as collaterals. Most of them are willing to do so. If there is no bigger down payment and no collateral, you should do lease option.

5. The time it takes to foreclose the home

If buyer defaults on payment, the remedies are different. You have to repossess the property if you do owner financing. You have to evacuate the tenant if you do lease option.

Generally, it is much easier to evacuate the tenant than to repossess the proeprty,  and also it takes much shorter time. But, in some state, such as in Georgia, it takes much shorter time to do the foreclosure or repossession and foreclosure proceedings are much easier than other states.

6. Personal guarantee on your mortgage

If you have personal guarantee on a mortgage loan for the property you are going to sell, you should consider lease option to eliminate the risk of the lender calling the loan due on sale.

7. Tax benefits

If your home is not your primary residence and own it least than one year, you have to pay high capital gain tax if you sell it with cash. Lease option gives you two tax benefits. First, you can defer the time of the home selling to more than 12 months. That ways, the tax on capital gain will be much lower than selling it with an ownership of least than 12 months. Second, if you do lease option, you can get tax deductions for the mortgage interest and rental property depreciation. Of cause, you can get other tax deduction if you do lease option.

Fore more home selling tips on related homr selling blogs, click following links:

http://besthomesellingtips.com/category/home_selling_by_owner_financing/

http://besthomesellingtips.com/category/home_selling_for_sale_by_owner/

http://besthomesellingtips.com/2007/09/10/how-to-do-seller-carry-back-mortgage-and-subordination-by-example/

 http://besthomesellingtips.com/2007/09/07/how-wraparound-mortgage-works-%e2%80%93-by-example/

http://besthomesellingtips.com/2007/09/12/lease-option-by-example/

 

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Lease option has different names, lease purchase, rent to own, or right to buy lease. They basically talk the same thing. In my previous blog, I wrote about the definition of lease option and the benefits for both seller and homebuyer. Here is an example of lease option or rent to own (lease purchase).

You have a home with 3 bedrooms and 2.5 baths in very good condition. It is worth $200,000. Your loan balance is $170,000 or whatever. The monthly PITI payment is $1290. The monthly rental for the similar houses in the same neighborhood is $1500/month or a little bit higher.

You market your house as lease option like this: Read more

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There are a lot of successful stories about for sale by owner. However, most of the sellers of for sale by owner (FSBO) failed to sell their homes. FSBO is not a simple task of sales and it takes a good professional skill set in sales and marketing. it also takes commitment, time and efforts, and knowledge, much more …

I am not saying you cannot sell your home with for sale by own. What I am saying is that you must not take it lightly and must avoid the mistakes other FSBO sellers made to increase your chance for success.

Here are top 3 reasons why FSBO sellers fail or the top 3 mistakes some FSBO sellers made: Read more

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In any market, you can use lease option to reach a much broad buyer base, such as buyers usually could not buy their homes because of bad or poor credit score. You can also reach investors who use lease option as an investment tool. Most real investors use lease option to buy or sell properties in order to get more profits. Lease option is a very good tool to sell home with for sale by owner. It is my favorite tool to sell my properties.

What exactly is lease option?

In a simple term, a lease option (also called lease purchase or rent to own, or right to buy lease) is a real estate contract between a homebuyer and a seller (in this case, you) that gives the homebuyer tenancy in your property and the legal right to buy your property at pre-agreed price on or before a specific future date. Read more

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I picked up a very nice article from eZine by Wee Dilts while I was surfing online. The title of the article is “Seven Money Saving FSBO Options”. In this article, Wee clearly presented 7 money saving FSBO options. Wee also gave you pros and cons for each option and suggestions to overcome those cons for each option.
Those seven options are: Read more

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