Q: My wife and I have found a house for sale by owner. The owner has offered to finance the property for us. The asking price is $130,000.
What kind of interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. rate should the seller charge us? How much should we put down on the house? Should we put 10 percent down? Do we enlist a real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. agentAn Agent is an individual who acts on behalf of a consumer. A real estate agent represents a buyer or a seller in the purchase or sale of a home. Licensed by the state, a real estate agent must work for a broker or a brokerage firm. An insurance agent helps a consumer purchase an insurance policy. Insurance agents are also licensed by the state.A Real Estate Agent is an individual licensed by the state, who acts on behalf of the seller or buyer. For his or her services, the agent receives a commission, which is usually expressed as a percentage of the sales price of a home and is split with his or her real estate firm. A real estate agent must either be a real estate broker or work for one. friend to get involved or should we hire a lawyer and titleTitle refers to the ownershipOwnership is the absolute right to use, enjoy, and dispose of property. You own it! of a particular piece of property. companyA Title Company is the corporation or company that insures the status of title on real estate (called title insuranceTitle Insurance is insurance that protects the lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate. and the property owner against losses arising from undisclosed defects or problems with the title to property.) at a closing, and may handle other aspects of the real estate closing.?
We’d appreciate your guidance.
A: First things first: you need to hire a real estate attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate. to draft up the contract and make sure you’re protected.
When you buy a home that’s for sale by owner, you need someone to walk you through the process, make sure the seller is providing all of the disclosures you’re entitled to receive under state law, and be sure that the title insurance purchased is sufficient to protect you in case someone else makes a claim to the house in the future. The attorney can also draft up the loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interest. documents.
To find a good real estate attorney contact your local bar association and ask for the phone number of the individual who heads up the local real estate committee. Talk to him or her about what you’re looking for and ask for some referrals. You want to hire an attorney who has plenty of experience with residential transactions.
As for loan prices, take a look at Bankrate.com. You should be able to figure out what a 30-year mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. is going for in your area and that should be the interest rate you pay your seller on the loan. Hopefully your seller will give you the loan without any points or fees, which will make it quite inexpensive for you to finance the property.
As far as the down payment goes, you should put down whatever you can afford. Ten percent sounds like a nice round number.
Q: My ex-spouse and I own a house. He’s living in the house and I live elsewhere.
We’ve just received a court order that states the house is be placed for sale. My ex has been ordered to cooperate with the sale and help make the house presentable for sale.
But to date, the house has not yet been listed because he says he is not ready for the agent to view the home. Apparently, the house is in total disrepair.
Considering that I’m the co-owner, should I be able to view the home to help determine what we might do to prepare it for sale?
A: As a co-owner, you should be able to view the property. But that doesn’t mean your ex-spouse isn’t going to make it difficult for you to do so.
Try talking to your ex-spouse to find a time when he can be there to walk around the property with you. Ask if he would be willing to move out of the home before it is sold, so you can at least have it cleaned professionally and perhaps get more money for the property.
If he is unwilling to work with you, you may have to go back to court. Consult with your attorney for more details.
Q: I have always had a great interest in being a real estate agent or working in the real estate field. Where can I get the best training for this career?
A: Being a real estate agent can be a great career, if you’re willing to put in the time to really learn your stuff.
Education-wise, your state will require you to take a state-approved licensing course. You’ll then have to sit for your state license. Next, you’ll have to get a job with a broker who can hold your license for you.
What you should try to do is get one of the top firms in town to hire you. You should also try to get hired as an assistant for one of the best agents in the firm. There’s no better way to learn about the business than watching a master up close.
After a year or two of working for a top agent, you’ll probably be ready to start fielding your own clients. Good luck.
Jan. 19, 2009.