I'm thinking of selling my home without a Realtor and would like feedback on pros and cons. Have any of you had the experience?I'd as for a moderate down payment and carry the financing myself.
"I'm thinking of selling my home without a Realtor and would like feedback on pros and cons."My former next door neighbor tried selling his house on his own because:a) he didn't want to pay the realtor, andb) he didn't want to bother negotiating with chislers trying to cut him down on the price. (he cheerfully overlooked the fact that he might be a chisler for trying to cut out the realtor)Result: He didn't sell until he listed with a realtor, and then he sold it quickly. And this is a hot area where properties still go fast!I think selling by owner is a fine idea if:a) You're not in a hurryb) you don't mind all the hassles that realtors handle for you
I'd as for a moderate down payment and carry the financing myself.You might want to rethink carrying the paper yourself...bad idea.
Why is it a bad idea to carry the paper yourself?If the document is properly drawn up by a lawyer, and includes the stipulation that the property automatically reverts to the lender if payments fall 3 months (or 6 months) in arrears, and the mortage drawn up is registered, where else can you get around 6% on your money today??Trini
About doing the financing yourself . . . .I sold a house this way about 3 years ago, and we settled for the interest rate the buyer would have had to pay if he'd gone with bank financing, which was several points above the rates you read about in the paper. Since it was a 20 year, fixed rate mortgage -- and since interest rates have gone down quite a bit since then -- I'm doing well at 9%.On the other hand, if I were to sell it now at 6% and watch interest rates change back to the 14% we were paying in the early 1980's . . . I'd be a little sad for the next dozen years or so.My Dad sold a house this way a number of years ago . . . . over and over and over . . . . which actually made him money over time, but it was a big hassle, getting the house ready to show again each time an owner let the house go back to him.A tip: our lawyer told me that I should buy the insurance and pay the taxes on the house -- because I stood to lose a lot if the buyer didn't do the paying and then let the house come back to me. So he wrote the contract such that the buyer pays an escrow amount each month along with the P&I. Also, I'd suggest staying away from letting the buyer pay every two weeks instead of every month -- I'll explain why if anyone cares, but the basic reason is that it got complicated for us, because the buyer kept thinking that "every two weeks" equaled "twice a month" and thought I was trying to rip him off. Good luck!
Why is it a bad idea to carry the paper yourself?We have close friends who are both real estate lawyers, and we asked them about owner financing when we considered selling our farm. These are people who write up sales contracts for a living. Their question to us was "Are you smart farmers, or dumb farmers?" The problem is all the difficulty involved in enforcing the contract when there is a default. bj
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