Using a land contract to sell a house
In today’s market, many people have found it more and more difficult to sell their home. I get calls every day from people that are looking for new ways or creative ways to sell their house quickly. The secret to selling a house quickly is that you must give something to get something. If you want a quick sale, then you must be willing to do something creative or different with the finance since financing is the main problem that people are having right now. One of the tools that I used the pass to sell house quickly is a land contract. A land contract is simply an agreement between the buyer and the seller. The seller agrees to sell the property under terms or meaning that they will take payments instead of a cash payout by the property. The buyer on the other hand agrees to make payments, just as they would to a bank, until they either buy the house or pay the house off entirely.
This is attractive right now to some people because of the fact that people are having such a hard time getting financing. A land contract simply protects both sides and make sure that both sides follow the rules. The best way to explain a land contract is to think of it as a savings account, only this savings account instead of holding money holds the deed or title to a property. This takes the deed out of the seller’s hands and puts it into the hands of a neutral party. At the same time if the buyer does not make the payments on the property as palms then the seller can easily get back the tide of the property without having to go to avoid foreclosure. A land contract is easy to set up and can be maintained with very little effort.
A land contract offers a great solution for a seller so that they can offer owner financing. Owner financing will often allow you to sell your house quickly because it takes the bank out of the equation when buying a house. The biggest downside to land contracts is the fact that you won’t get all your money at once. It is almost like being a glorified landlord only you are not responsible for repairs. If you are unwilling or unable to rent your property then a land contract may not be a good solution for you. If you feel comfortable renting your house than a land contract may be a better solution because you won’t be responsible for repairs or movements of the property.
Also, be careful which state you are in when you do a land contract some states will require you to do a full foreclosure to take back the deed on a land contract; other states only require that you do an eviction. There are pluses and minuses to every way to sell a house creatively, this is one tool you can use if you are comfortable with it if you are unsure or not comfortable and talk to your lawyer and see if they think this would be a work will solution for you.
Arthur V. Veal IV is the owner of We Buy Houses Home Services, a real estate investment company. They specialize in buying houses on terms. Buying on terms allows them to purchase houses and pay very near retail prices while still selling the house for a profit. Find out more about their programs by visiting their site at http://www.sellonterms.com
