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It ended with him saying that he's going to make a few calls & see what he can do. I'm betting that he's going to try to either get a co-signer or someone to help with a down payment. So time will tell but he knows that mom took damn good care of the place & that the land is big enough to garden on & enough room for the two kids to play & run on..
So we will see.
Good luck, have him look into first time buyers down payment and closing cost assistance programs. But that's only if he's getting a mortgage. IF you still want to do a for sale by owner or rent to own it's a different thing.
That's what my wife said maybe a family member with good credit & some one who help with a down payment.
Quick question I know we can go though a real estate lawyer to get paper work done but and I can't remember if my ex & I did this but isn't there closing cost? Even with no real estate agent.
Check to see if a title company will handle the closing. They do here, charging a relatively small fee to each party. You'll need to determine who normally pays transfer taxes there...and, if title insurance is involved, it needs to be determined who will pay for that. In Michigan, it is customary for the Seller to pay for both title insurance and transfer taxes (not sure how it's done down there), but all things are still negotiable. Those would be the biggest potential Seller closing costs, as long as you're not agreeing to pick up some of their closing costs.
Good question. This is something to ask if he is paying $435.00 which is about right for a apt in this area $600-$650 is what a house of this size rents out for. I don't know if he could make $600.00 a month in payments that we would have to ask him. He did say that he would want to fix the floors himself which would save us from doing it. Then again he needs to be able to do the repairs himself & have the money for it.
Who's to say he would pick out decent flooring or even do a good job installing it?
A rent to own situation typically has higher monthly payments than regular rent because the extra money goes into an escrow account for when the agreed upon time comes to complete the sale of the house. This is WHEN rent to own situation's work out.
If you really want to do this, you need to hire yourself a good local real estate attorney. You will need everything in writing and spelled out. You will need deposits and credit checks.
When we were selling our house in SC after we were relocated due to a job, we had an offer of rent to own. They told us how much they wanted to pay in rent and how many YEARS they wanted to live in our house. They admitted they had bad credit. My answer IMMEDIATELY was hell no! How do you get bad credit? You don't pay your bills! Rent is a bill and evictions are a pain in the @ $ $!!!
That's what my wife said maybe a family member with good credit & some one who help with a down payment.
Quick question I know we can go though a real estate lawyer to get paper work done but and I can't remember if my ex & I did this but isn't there closing cost? Even with no real estate agent.
Oh yes there are ALWAYS closing costs for both the buyer and the seller. You really need to speak to a local real estate attorney.
Closing costs have noting to do with a real estate agent or their fees, those fees are paid by the seller, they pay for their RE agent as well as the buyer's.
Closing costs have noting to do with a real estate agent or their fees, those fees are paid by the seller, they pay for their RE agent as well as the buyer's.
They are paid for by both the seller and buyer. The cost of the service is built into the price levels of the homes. The fact that the agent(s)' fees come from the proceeds from the closing does not infer that the seller actually pays the cost. Ultimately, the money comes from the buyer who in most cases borrows it from a bank. In any case, both the buyer and seller pay for the real estate agent's commissions. Some agents toss the "seller's pay" lie around to convince buyers they are getting something for free and would be fools not to avail themselves. But there is no free lunch. Whether you actually use a buyer's agent or not, you are paying for him if you buy in an area where the MLS comprises the dominant market. Which is basically almost everywhere.
They are paid for by both the seller and buyer. The cost of the service is built into the price levels of the homes. The fact that the agent(s)' fees come from the proceeds from the closing does not infer that the seller actually pays the cost. Ultimately, the money comes from the buyer who in most cases borrows it from a bank. In any case, both the buyer and seller pay for the real estate agent's commissions. Some agents toss the "seller's pay" lie around to convince buyers they are getting something for free and would be fools not to avail themselves. But there is no free lunch. Whether you actually use a buyer's agent or not, you are paying for him if you buy in an area where the MLS comprises the dominant market. Which is basically almost everywhere.
Yet, ask a Buyer whether or not the Buyer cares if a Seller pays an agent a commission. A Buyer is willing to pay what a Buyer is willing to pay, regardless of whether a Seller pays a commission. It still comes out of the Seller's pocket--that's why people try to sell FSBO, to save on commission.
I know, I know. You can go round and round with circular arguments. It's akin to the "chicken or egg" scenario.
I have seen it work both in a positive fashion for the original owner and as a nightmare for the original owner. I suppose IF it is paid in full and if you can set your "interest rate" on carrying the loan for him and IF you get the proper contract written up by a real estate attorney that assured you were to maintain all interest in the home should he default, you might do well.
Again, this (just like investing in the stock market/precious metals/whatever you might want to try to draw a return from) always has risk involved.
They are paid for by both the seller and buyer. The cost of the service is built into the price levels of the homes. The fact that the agent(s)' fees come from the proceeds from the closing does not infer that the seller actually pays the cost. Ultimately, the money comes from the buyer who in most cases borrows it from a bank. In any case, both the buyer and seller pay for the real estate agent's commissions. Some agents toss the "seller's pay" lie around to convince buyers they are getting something for free and would be fools not to avail themselves. But there is no free lunch. Whether you actually use a buyer's agent or not, you are paying for him if you buy in an area where the MLS comprises the dominant market. Which is basically almost everywhere.
I pay for a home the price I agree to pay, the seller takes 6% of the price that I pay and pays the listing realtor and the buyer's realtor. He's the one getting 6% less, not me. The money is coming from the sale of the house but the seller is the one who has to pay it. If I buy a home for $100K I buy it for that much, the seller gets $94K or less with other closing fees. He's paying. It's his loss.
Now if he paid his 3% and got 97K and I had to pay $103K I would be paying for it. That's not the case.
If I buy a $100K home that's what I get if it's appraised at that much, if the seller has to pay the agents he doesn't get $100k.
I have seen it work both in a positive fashion for the original owner and as a nightmare for the original owner. I suppose IF it is paid in full and if you can set your "interest rate" on carrying the loan for him and IF you get the proper contract written up by a real estate attorney that assured you were to maintain all interest in the home should he default, you might do well.
Again, this (just like investing in the stock market/precious metals/whatever you might want to try to draw a return from) always has risk involved.
Good luck!
Also they have to be careful at what rate the loan if because if it's too much there are usury laws, I believe they are called where borrower may own that home and not have to pay for it.
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