Tips For Understanding The Listing Contract When Putting Your Home Up For Sale
When working with a real estate agent for listing a home for sale (or even commercial real estate) the agent will present the owner with a listing agreement. The listing contract provides the terms and conditions the real estate agent will use to list the home for sale on the local MLS (Multiple Listing Service) where all homes are listed by agents. Understanding the listing contract is important for homeowners since the contract will contain the rights each party has in the transaction. This article looks at some of the important areas homeowners need to be paying attention to in the listing contract.
Basic Terms of the Listing Contract
Some of the important basic terms of the contract relate to things like making sure the correct address shown, understanding how long is the listing agreement for, and is the agreed upon commission rate correctly captured in the contract? Typos happen and while not a huge deal if the house is listed as 1234 Main Street when it should be 1233 Main Street, a commission rate of 8 percent when 5 percent was agreed upon could become a costly error if the contract is ever enforced in court. Just as with any contract everyone signing the contract should be reading the language and making sure they understand what they are signing. If there are questions, ask your real estate agent or get an attorney involved if there is some language...
What Is Seller Financing?
When buying real estate the typical methods for paying are providing cash or getting a mortgage. One other method which is not very common is buying the property through seller provided financing. With seller provided financing the owner of the property is basically agreeing to sell the property to the buyer and take monthly payments in exchange. This article looks at seller provided financing to help buyers understand why it may or may not work.
Seller Financing Terms
With seller financing pretty much everything is negotiable. The buyer can negotiate how long they want the loan to be, how much down payment they should pay, what interest rate they will be paying and more. Of course, depending whether it is a buyer’s or seller’s market the negotiating position of the buyer to get the terms that want may or may not be the greatest. The seller is also the one offering the financing so regardless of the type of market they have more ability to control what they will or will not accept.
A traditional mortgage can have minimum down payments anywhere from 0-30% and terms are typically 7 to 30 years depending on type of real estate involved (commercial vs. residential). When using seller financing it is highly recommended that the buyer work with a real estate attorney to make sure their interests are being properly protected. Buyer’s should insist that the real estate title be transferred over to their name and the seller have their financing document be registered on the property as a mortgage lien to protect both...
Mortgage rates have trended downwards after the recent activity in Europe and the recent upward trend. Slightly more homes were sold in February and as the weather warms real estate sales in general should pickup. Real estate still faces a lot of headwinds from high inflation rates, the Federal Reserve intent on raising rates, and a declining stock market.
Is 4% The Rate That Breaks Reat Estate's Back? - In the past it took much higher rates to cause a drop in demand from buyers. This time around 4% may be that rate that slows things down.