The Elements of a Legally Valid Real Estate Contract

While buying and selling real property is a major milestone for most individuals, many parties that engage in real estate transactions are not formally educated on real estate contracts. This comes as no surprise — a family may only purchase real estate two or three times over the course of their lives. Sunwest Escrow — your real estate contract specialists in Albuquerque — believes that all individuals purchasing or selling a piece of property should have a basic understanding of the aspects that make a real estate contract legally valid. We’ve identified the following elements which are necessary for legally valid real estate contracts. The 3 Most Important Elements in a Legally Valid Real Estate Contract 1.The property must be exchanged for money or something else of value. 2.An offer must be made by the buyer, the seller must accept the offer, and both parties must agree to all contingencies. 3.A real estate contract must be written. Most state laws require all real estate contracts…

Owner Financing: The Best Real Estate Technique for Home Buyer

As a buyer, there are plenty of options available when you plan to purchase a home. However, securing a mortgage from your bank can present you with high-interest rates. Renting to buy is not a preferable option either. In fact, the best way for buyers to purchase a real estate by owner financed homes.

Also known as seller financing, owner financing is a real estate technique that can be extremely beneficial for home buyers. Instead of acquiring a mortgage from a commercial lender like a bank or another financial institution, the prospective homebuyer has the option to finance the home with the help of the property owner themselves. The seller supplies all or a portion of the money needed for the homeowner to purchase the home. Essentially, the buyer is taking a loan from the seller.
Types of Owner Financing Albuquerque
Since the agreement is between the buyer and the seller only, the type of owner financing the parties agree to can take many forms. Three common versions include mortgage…

Important Terms Relative to Real Estate Purchase Agreements

Whether you are considering a real estate purchase agreement as an offer, or are drafting one to purchase property, there are several terms you should know. The real estate professionals at Sunwest Escrow are here to serve as a trusted resource for those who may be new to the process of buying or selling a home. We have developed a list of elements that will likely be included in a real estate purchase agreement.We believe that all parties should be familiar with these basic terms prior to engaging in negotiations. Important Terminology ●Appraisal: The estimated value of the property determined by a professional appraiser. This value may be different than the perceived value or asking price. ●Contingency: The conditions agreed upon by the seller and buyer which must be met in order for a sale to be finalized. ●Escrow: This third-party service holds the earnest money deposit and the title of the property until all conditions of the contract are met by the buyer and seller. ●Lien: A legal …

Guidelines To Buy A House Through Sale By Owner

If you have discovered that the home of your dreams is listed as a For Sale By Owner Albuquerque property, you will need to understand how this real estate transaction is different from a home sale aided by a real estate agent or brokerage firm. The team at Sunwest Escrow has been helping For Sale By Owner sellers and buyers navigate their way around this process for years. We have created a helpful set of guidelines that will aid you as you buy a home that is listed as For Sale By Owner.

Step #1: Decide if you need to hire a real estate agent.
Just as the owner can sell their house without a real estate agent or brokerage firm, the prospective buyer can also enter into this process without representation from a real estate firm.

Step #2: Determine if you need legal representation.
Depending on the state, laws may require the seller or buyer to have legal representation during a For Sale By Owner transaction.

Step #3: See if you can get pre-approval for your mortgage.
In many case…

5 Facts About Real Estate Contracts Every Buyer and Seller Should Know

Sunwest Escrow, the real estate contract Albuquerque resource, has identified five facts that we believe all potential home buyers and home sellers should know before entering into a real estate transaction.

Fact #1: All contracts are negotiable by the buyer and seller.
Although a real estate contract is drawn up, that does not mean it cannot be modified. The buyer and the seller have the right to request changes to these documents as they move forward with the real estate transaction.

Fact #2: The buyer can ask for a home sale contingency to be added to the contract.
A home sale contingency clause is a modification to a contract that states that the finalization of the contract is contingent upon the sale of the buyer’s initial home. This protects buyers who were planning to use their home’s sale to finance their next home purchase.

Fact #3: The buyer can also ask for a right of first refusal clause to be added to the contract.
Drawn up before the house is put on the market, the…

Points to Keep in Mind Before Offering Owner Financed Homes

Owner Financed Homes in Albuquerque In today’s real estate market, many owners are selling their homes with only the help of an escrow company.  These sellers could also offer to finance the home for the buyer.  This enables the buyer to avoid getting a loan from the bank because the original owner will lend the buyer the total purchase amount. Owner financed homes can help both the buyer and the seller.  The buyer has the advantage of a faster closing process with lower closing costs, a flexible down payment and the ability to work directly with the previous owner until the contract is fulfilled. The seller also benefits because they can sell the home faster, minimize carrying costs and use the buyer’s down payment to pay their own debts or put a down payment on another property.  But before offering owner financing, Sunwest Escrow of Albuquerque believes that there are a few points both buyers and sellers should know. Points to Keep in Mind Before Offering Owner Financed HomesAlways…

Why You Should Go For Sale By Owner?