Selling Your Home in Today's Market

Selling Your Home in Today's Market

Home buyers are facing some obstacles when financing is not as easy to obtain.  Down payment requirements today are more stringent than in previous years.  The glamour of buying, holding, then selling for a profit has temporarily gone away, so home sales are proceeding at a slower rate, especially in the markets where purchases are not considered first time buyer homes.  So what can a seller do to attract more buyers? Here are several forms of alternative sale techniques:

Lease With The Option To Purchase - Your prospective purchaser simply leases your property with an option to buy anytime during the lease period.  No terms, price, dates are established; just an option the tenant has on your home. You are responsible as any landlord for providing a safe habitable abode for them.  Their duty is to keep the property in the condition as delivered to them.   This is often referred to as Rent To Own.

 Lease Purchase - Your prospective purchaser deposits an agreed upon sum which either applies to the purchase or is forfeited at the end of the lease, should they not purchase to the terms of a purchase agreement attached to the lease.  More creative features can be inserted into the agreements, such as appointing a cost ceiling for tenant's maintenance costs.

All Inclusive Deed of Trust - Your prospective purchase executes a Deed of Trust with you, the seller, as Beneficiary. Receiving their payments on this Deed of Trust allows you to pay your existing Deed of Trust.  Your Deed of Trust should be scheduled so that you are able to pay it in full when your purchaser pays you in full.  This method is referred to as ‘Wrap Around'.

Deed of Trust - If you own your property free and clear, or you can use the purchaser's down payment to pay your note in full, you are in a position to offer the purchaser a Deed of Trust with you as Beneficiary.  Knowing someone else who would like to finance this purchase would also allow you to sell by providing a Deed of Trust with that someone being Beneficiary.Oftentimes this arrangement is called Land Contract or Contract for Deed.

It is recommended that all parties have an attorney help with the papers necessary to participate in these types of sales!!