The Home Selling Process and Alternative Financing
By: Tilden Moschetti
Whether you are a real estate seller or a real estate buyer, you have to work with a real estate professional who is familiar with the twists and turns of the local market. Since a real estate investment holds a lot of promise, a lot of people are considering buying or selling a home. It is not unusual for a real property lawyer to get a lot of questions about home buying and home selling.
Now if you are planning to buy or sell your home, get advice and legal representation from a trusted Calabasas real estate lawyer to make the process of negotiating a lot less stressful. Additionally, if you are a home seller or buyer looking for real estate information, this article can help. It will cover the basics of:
Services of a licensed real estate agent and the purchase and sale of a new home
Both when buying or when selling a house, it is the job of real estate brokers and agents to jumpstart the home sale. Both a licensed real estate broker or agent will have access to the local multiple listing service. However, what most buyers fail to see is that not all real estate agents and brokers are the same.
As with any other real estate transaction, exercising diligence is necessary for a smooth purchase of real estate property. Always keep in mind that the real estate market is unlike any other market, and everything must be pursuant to local real estate laws. Whether or not there is a dual agency, both the home buyer and seller should benefit from the professional sales agent they sign up for.
Things to consider when buying or selling property
An aspiring real estate property owner would often look first at the purchase price. What some overlook, however, is how the price is generally higher if the homeowner is selling property at a prime location, or when several homebuyers are looking into the same home. Experienced Calabasas real estate attorneys can help with these negotiations concerning real estate.
Down payment and lender mortgages involve a lot of money. As such, home buyers, often need to negotiate with lenders to get a mortgage loan. This, however, is just one of the many real estate transactions that both the home buyer and the one selling a house. Therefore, real estate buyers and sellers need to be aware of federal real estate law and state law that are meant to protect the best interests of both parties involved.
Alternative financing options
State laws on selling or buying a home are strict, but the actual real estate transaction allows for more creative ways to finance the home purchase. In contrast to the traditional home mortgage, a local attorney representing the seller may draft a contract to formalize an alternative arrangement.
The above applies to cases where real estate sellers are ‘willing to carry’, or are open to the idea that they will be the ones to act as a banker and will receive interest, usually at monthly intervals, directly from the buyer. These are owner-funded purchases that often have competitive interest rates and are likely to be short-term arrangements. They often last for five years or even less.
Another alternative is what people call a second mortgage, which is often in the form of a home equity line of credit. Take for instance a property that costs $400,000 (with $40,000 as a down payment) that is being bought by a property owner whose own home is worth $850,000 (with a $350,000 mortgage). A second mortgage will allow you to borrow at a relatively lower interest rate and for a longer term. Additionally, since the loan is against an existing property, tax relief may be availed.
Legal advice and real estate assistance
Before proceeding, talk to a trusted Calabasas real estate lawyer about the real estate sales contract. He or she can explain escrow, appraisal, contingencies, closings, and title insurance policy. You can also ask your questions regarding appraiser, home inspector, or homeowners’ association fees, and transfer tax. Law offices specializing in these areas of law can help you deal with any legal issue and avoid real estate litigation.
For any legal questions involving a real estate sales contract, real estate, and taxation, or for your other real estate needs, call our law firm. Contact our reliable Calabasas real estate attorney at Moschetti Law for assistance on home purchase paperwork and legal services.
At Moschetti Law Group, our practice serves the needs of Founders by providing real estate law and real estate syndication attorney services to Founders. Whether you are the Founder of a real estate empire or building a business and need assistance with purchase and sales, real estate transactions, or real estate litigation, we serve Los Angeles County, eastern Ventura County, and North Orange County from our office in Calabasas. We also have a primary focus on helping Real Estate Syndication Founders throughout the United States with forming their syndication, understanding crowdfunding, private placement memorandums, and operating agreements.