It can be extremely difficult for an investor to purchase from a seller that is not motivated to sell.  This tenet goes with anything.  It is nearly impossible to convince a person to give up something which they are not willing to give away.  This especially goes for real estate.  If a real estate owner does not have a reason for selling property, any investor would have a difficult time convincing that owner to do otherwise.

 

When working with a motivated seller, an investor does not have to do much work convincing the owner to sell the property.  This is because the seller has already made up his or her mind that selling the property is the best decision to make.  In many cases, a motivated seller has gone through other avenues of solving the problem that led to the need to sell the house.  After seeking other solutions to no avail, the motivated seller settles on the fact that selling the home is the only option.  A motivated seller is the polar opposite of a owner that has no willingness to sell.

 

Working with a motivated seller puts an investor in a position where he is able to offer a bargain.  In most cases, there is not much of a need to negotiate on a price.  Investor’s can often negotiate prices that are well below market value of the home.  Often motivated sellers are almost to a point of desperation when it comes to selling property.  Once a seller has reached this point, he or she is almost begging the investor to take their property off their hands.

 

Motivated sellers often give better deals and perks with selling property than sellers that aren’t so motivated.  These sellers will often pay a percentage of the closing costs.  Some sellers will pay the maximum amount allowed by lenders which is usually 6%.  This deal works well for the investor because it means that the investor does not have to spend as much money on closing the deal as he might have to spend in another situation.  Not only do some motivated sellers pay towards the closing costs, they also pay other fees associated with the sale of the property.  This includes loan officer fees and other fees that are included with closing the loan.

 

Of course, it is important for investors to make sure that they fully understand the reason that the seller is motivated to sell their home.  There could be some defect with the home that would end up costing the investor in the long run.  Make sure to do all due diligence checks before closing on the home.

 

First, you want to invite the potential buyer back as soon as possible.  Make sure the house is ready for show even though the buyer has seen it once before.  This may be the visit where they will make an offer to purchase or go on down the road to another house they were interested in a second look.

 

Make sure to greet the potential buyer warmly and offer refreshment, such as tea, coffee or a soft drink.  Allow them to look around the house again, but don’t hang over their shoulder.  Let them be.  Hopefully they will want to ask more questions after looking at the house once more.  If they don’t ask any questions, chances are they are not going to buy.  When they do ask questions, answer the questions honestly.  You want to pave the way for negotiations.  Just stay calm and be friendly.

 

The buyer may just come right out with they the fact they are interested in the house and may ask for the next step.  This is a question you should stay prepared for.  You have the buyer put his offer in writing.  If you have made arrangements for a contract attorney to negotiate the contract, the attorney will provide you with contract forms.  Give one of these contract forms to the buyer.  If the buyer states his desire to just talk about the sale, you want to make sure you and the buyer are of the same mind.  Have a friendly discussion with him regarding the purchase of the house, but remember, you are not obligate to anything you talk about until it is in writing.

 

It is best not to negotiate price verbally.  A buyer will probably ask for your bottom dollar price and you should answer how you need to see his entire offer in writing and proof they are able to qualify for the loan before you can consider negotiating price. 

 

Just remember to stay calm and friendly.  Don’t take any negative remarks about the price or your house to heart.  A “for sale by owner” deal should be a win-win situation for both parties, so don’t allow negotiations to become overly heated or personal.

 

A real estate investor is able to move quicker in a real estate transaction.  This is because a licensed realtor is bound by certain laws that only allow him or her to move at a certain pace.  A real estate investor, though he must act within certain limits of the law, does not have the same limitations as a realtor.  Because of this the investor can move quicker in real estate transactions it is better to choose the investor to assist you.

 

In many cases, you can receive a better deal on real estate when you a real estate investor versus a licensed realtor.  Because a realtor works for a company that has to make a profit as well as pay commission to the realtor, the prices are sometimes marked up several percentage points over market value.  Although a real estate investor, too, is seeking to make a profit, the investor is in a better position to work out a deal with you.  It is much easier to negotiate with a real estate investor than it is to negotiate with a licensed realtor.

 

Cash for the sale of your real estate is another reason that it is better to work with a real estate investor.  When you are working with a licensed realtor, that person can only do what their company allows them to do.  Cash for the sale of real estate usually isn’t something that a real estate company will allow their realtors to do.  Instead, you have to go through a lengthy sales process and receive a check sometime at the end of the process.  If you want cold hard cash for the sale of your real estate, your best bet is to work with a real estate investor.

 

In foreclosure situations, a licensed realtor will be of little to no help in helping you keep your home.  These people seldom want to help those at risk of foreclosure keep their homes.  A real estate investor, on the other hand, can work with you to help keep your home from being repossessed from the bank.  In nearly all cases, a real estate investor can help you lower your monthly payments to a level that is easier for you to pay.

 

Licensed Realtors do have their place in the real estate industry.  However, in most cases, you will come out better choosing a real estate investor to assist you with your real estate needs.

 

One of the first things that should never be done before a home purchase is the purchase of an automobile.  For many people these two things go hand in hand.  The notion is that once you have a car and a house that you have arrived.  While there may be some element of truth to this notion, it is extremely difficult to purchase both at the same time.  Having an auto payment at the same time as a house payment creates financial strain.  Worst case scenario, this financial strain could lead to a repossession of the car or the house or both.

 

Some lenders will not approve you for a mortgage if you have recently made a major purchase such as an automobile.  Too often they have seen people lose their homes because of the financial strain that two large payments can create.  This also goes for other major purchases including furniture, vacations, weddings, and appliances.

 

You should avoid changing jobs at least six months prior to applying for a loan.  There are a few exceptions to the rule.  If you are a salaried or hourly employee and will be making more money at your new job, it will not affect your ability to get a loan in most cases.  In fact, lenders look favorably at an increase in income.  If your income is made from commissions or bonuses or you work part-time, you should not change jobs before applying for a mortgage.  Also, if you are considering becoming self-employed you should only do this after you buy the home.

 

Before you apply for a mortgage, you should not apply for or open any new credit card accounts.  In fact, you should avoid incurring any new debt for at least six months before you apply for a mortgage.  When you take on new debt, it gives the lender reason to question your ability to afford the mortgage payments.  The higher your debt load, the less likely a lender will approve you for a mortgage.  Avoid using your credit cards to pay for items while you are getting ready to apply for a mortgage.

 

When you apply for a mortgage, the lender will take a look at statements for your liquid assets for at least the last three months.  In this time period, you should make sure that you don’t make any large transfers of money between the accounts during this period of time.  The lender will ask you to produce various documents that show transfers of money.  Since this process can become tedious, it is best not to make transfers.

 

When a real estate agent gets a seller to sign a listing agreement for the agent to sell the seller’s home for a fee of 6% of the purchase price, the first thing the agent does is to place the home in the local Multiple Listing Service.  The agent will provide a “for sale” sign and flyer, place an ad in the newspaper and negotiate with the buyer’s agent.

 

The agent who brings the eventual buyer to the seller receives half the commission, which is usually 3% of the purchase price.  In rare cases, the agent who finds the buyer might be the same agent who listed the home.

 

There are two agents involved when selling a home.  The listing agent works with the seller.  The listing agent is the agent who places the home in Multiple Listing Service, help with the selling price, provide the seller with a “For Sale” sign for the yard and place ads in the local newspaper.  The listing agent will also host the “Open House”.  The listing agent makes 3% of the selling price of the home.

 

The buyer’s agent works with the buyer by searching the Multiple Listing Service for homes to match the buyer’s needs and wants.  The agent will take the buyer to the home and prepare the offer to purchase and help with the negotiations.  They also make 3% of the selling price of the home.

 

Typically the seller would be required to pay the listing agent 3% of the selling price and the buyer’s agent 3% of the selling price.  A flat fee Multiple Listing Service listing removes the 3% commission the listing agent would get and replaces it with a flat fee of about $199 - $599.

 

The seller is still obligated to pay the buyer’s agent, but the buyer’s agent will usually take a 2.5% commission.  As a “for sale by owner” seller you will not eliminate all of the commissions you are required to pay, but it will reduce the amount of the commission you will be required to pay.  It will be worth it, if you can find a buyer for your home.

 

When most people think of commercial real estate investment, they simply think that it means investment in anything that is not a house.  However, the process of investing in commercial real estate is much more complex than the prevailing notion. 

 

There are several different categories of commercial real estate.  When an investor becomes involved in commercial real estate investment, he or she can deal with one or more of these categories.  The categories that make up commercial real estate include multifamily, office, hospitality, industrial, and retail.  Since each of these types of commercial real estate has characteristics that are not shared among the other types, commercial real estate investment becomes slightly more complex. 

 

Investors that seek to become involved with commercial real estate investment should become familiar with the different kinds of commercial properties to better determine the type of investment property he or she would like to deal with.

 

Real estate property that has at least five dwelling units, but usually contains more, is considered multifamily commercial real estate.  Multifamily real estate is made up of many other subsets of real estate including townhouses, military housing, apartments, and student housing.  This part of commercial real estate is very similar to residential real estate.  For this reason many investors that seek to go into commercial real estate investing choose this category as their arena to work with. 

 

Office commercial real estate is basically real estate that is used by companies to get work done.  It includes office over retail properties, mid-rise towers, hi-rise towers, and single tenant spaces.

 

Hospitality commercial real estate is made up of hotels and motels.  For commercial real estate to be considered hospitality, renters should only be allowed to dwell in the property for less than thirty days.  Even hospitality commercial real estate can be broken down in into sub-categories depending on the service that is provided.  Full service hospitality real estate is that which includes luxury, upscale, mid-scale, and extended stay facilities. Another sub-category of hospitality real estate is limited stay.  This includes some mid-scale properties as well as economy, extended stay, and budget. 

 

Industrial real estate is that real estate that can only be used for purposes that are related to industrial uses.  Some examples include manufacturing, research and development, and warehouses.

 

Finally, retail commercial real estate is the place where retail business is conducted.  This sector of commercial real estate includes many subsets of real estate including outlets, free standing malls, strip centers, and single tenant spaces.

 

Knowing the various kinds of commercial real estate is extremely beneficial to those that are interested in going into commercial real estate investing.  This knowledge is the best way to determine the kind of commercial real estate the investor most wants to deal with.

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When negotiating with a buyer, do your best to stay away from making offensive responses when the buyer states the paint on your wall is disgusting.  If the buyer notices water stains on the basement floor, tell the truth making up a plausible excuse will destroy your credibility before negotiations even get started.

 

Make sure your potential buyer is able to acquire a mortgage loan large enough to cover the price you are asking for your home.  Don’t waste your time if the buyer is not able to get the mortgage loan needed to complete the deal.

 

Remember the buyer is not your enemy.  For negotiations to be successful you will have to talk to him.  When the buyer offers less than your asking price ask an explanation.  The buyer may have checked the prices of homes very similar to yours.  Or possibly the buyer has found an assumed problem with the property.  What ever it is find out the reason for the lower offer.  Most of the time the buyer is willing to pay something very close to your asking price.

 

In negotiations it is your turn to counter the offer.  First let the buyer know you are taking their thoughts into consideration, but…  Then you lower your asking price by a small amount with an explanation of why you are asking the price you are asking.  Mainly the fact the price you are asking is in line with the houses sold in your neighborhood with the same features as your house.

 

If the buyer gave an offer lower than your asking price, because the buyers believes the roof needs major repairing.  Let the buyer have the roof inspected at their expense.  If the inspection exposes a problem, then you can offer to lower the asking price to compensate the repair of the roof.

 

Be prepared to be flexible with the asking price.  Keep in mind the amount of money it takes for you to hang on to the property.  Would it be cost effective to take an offer of about $2000 less than your asking price and wait another 2 – 4 months for the next qualified buyer?

 

The foreclosure process can be intimidating, to say the least.  Losing your home will be a devastating process to go through and it will affect your for years to come.  A foreclosure will remain on your credit report for seven to ten years negatively impacting your ability to get credit.  In addition, you may end up being responsible for some part of the home cost if the bank is not able to auction the home for the full amount owed.  On the bright side, you have many options that you can exercise to avoid foreclosure of your home.

 

The best way to avoid foreclosure is to act as quickly as possible.  As soon as you notice you are having trouble making your payments you need to take action.  Do not wait a day later.  The longer you wait, the harder it will become for you.  Many people believe their financial situation will improve and they will get back on their feet before the situation worsens.  Even if you think things will get better at some point in the future, it is much better to err on the side of caution.

 

Do what you can to get the money for your mortgage payment.  A mortgage is considered to be the most important debt you can have.  Scrape together whatever you can to pay your mortgage.  Once you start falling behind on mortgage payments, it is extremely difficult to get back on track.  It’s much easier to pay a few hundred dollars than it is to pay a few thousand.  Find ways to boost your income for period of time until you get back on track with your payments.  Sell your slightly used clothes to a consignment shop.  Take a second job.  Enroll in a credit counseling program to get relief with credit card debts.  Do what is necessary to stay on top of your mortgage payments.

 

Before your credit is hurt by delinquency in mortgage payments, you should consider refinancing your mortgage to allow for lower payments.  Of course, when you refinance you should make sure you get a loan rate that make refinancing worth it.

 

The last thing you want to do is admit to your lender that you are having problems making payments.  However, in many cases, this conversation can be the one that saves your home from foreclosure.  Explain your financial situation to the lender and ask if there are any options available that will assist you.  Some lenders have forbearance options that will allow you to make interest-only payments, or no payments at all, for a period of time.

 

Other options include pre-foreclosure sale, where you sale your property to pay off the mortgage, and deed-in-lieu of foreclosure, which allows you to give back your property without damaging your credit.

 

Don’t be fooled into thinking there is nothing you can do to avoid foreclosure.  You can exercise several options to avoid foreclosure and a serious blow to your credit.

 

One of the first things you need to when you are getting ready to move do is let people know that you are moving.  This not only includes your friend and family, but it also includes lenders, organizations, and magazine publishers.  Be sure to send these people a change of address card so you won’t miss any important mailings.  You can file your forwarding address with your local post office so mail will be forwarded from your old address to your new address.  This can also be done online at www.usps.com.

 

While getting ready to move, you should return any items that you have borrowed to their rightful owners.  This is also a good time to get back that Tupperware or power drill that you loaned to the neighbors a few months ago.  It will get pretty expensive to mail these items once you have mailed.

 

About two to three weeks before you move, you should call your utility companies to let them know that you are getting ready to move.  If you will be in the same area, you will need to arrange a transfer of service.  However, if you are moving to an area that does not use the same utility providers, you will need to disconnect service altogether.  During this time you should also arrange to establish utility service at your new location.  This is best to make sure there you aren’t paying for utilities in two locations and to make sure you have the services you need when you reach your new home.

 

Inform your bank that you are getting ready to move.  If you plan to keep the same accounts, you can simply have your address updated on the accounts.  You should also have new checks printed with your new address.  On the other hand, if you plan to open an account in a new bank you should do this during the period of time you are getting ready to move.  This will help make sure you have access to your money in your new place.  If you are changing banks, you should leave your old account open until all checks and other charges have cleared.

 

You should have your car serviced before while you are getting ready to move, especially if you are going to be driving a lengthy distance to your new home.  Finding a place to have your car serviced in your new community might take some time.  It’s also a good practice to schedule any final appointments with your doctor and dentist.  This will give you time to find new physicians in your new area.

 

As you can tell, there is a lot more involved getting ready to move than packing up your things.  Consider making a checklist so that you don’t forget to do anything before you move.

 

The sales contract will specify the property being sold, the name of the seller and the buyer, the amount of money the house is being sold for, and the date when the title and the purchase money will change hands.

 

The property you are selling is known to you by the street address however it will have a legal description, which looks nothing like the address.  This legal description is needed by the county to identify the property.  You will find the legal description of your property on your deed and it will be located on the sales contract you signed when you first purchase the home.  The legal description of your property will start with lot and block number and include pages of a platte book which is located at the county court house.  This information is necessary when filling out your sales contract, but you don’t have to understand it.  There are a couple of items listed in the legal description you might need a definition to.  Real Property is land.  It is considered real property because it will last forever.  Improvements are considered to be the buildings and structures on the property.  Your home is an improvement on your real property, which the house is sitting.

 

A large part of the pages in the real estate sales contract is to cover possibilities.  For example: “In the event the seller does not fix the leak in the roof” an alternate action is then described, such as this contract is terminated.  Or the seller agrees to pay X amount of dollars to cover the repair of the roof. 

 

Other possibilities may include, if the buyer is unable to obtain a large enough loan to purchase your house.  The sales contract will require a buyer to describe in more detail than you may want to know about in an effort to prevent the buyer from backing out of the contract with the false claim of “unable to get a loan”.

 

The buyer has a right to pay to have the property inspected.  In the sales contract there is a dead line date for this inspection to be completed.  If problems are found during the inspection the seller can choose to repair the problem or release the buyer from the contract.

 

The sales contract will require the seller to turn over a clear title to the property, which has been insured and researched by a title company.

 

You can obtain Real Estate Sales Agreements at any major office supply store, such as Staples.  You can also obtain them from the nearest real estate office, but may be a more complex document than you need to suit your needs.  These forms can be downloaded for a fee from audrie.com.