How to Evaluate Land Contract Homes for Sale? When you want to purchase a house but don’t want to get a mortgage from a bank you can enter a land contract. Though risky, it can very profitable, particularly for the seller. The risk exists because it is the seller who effectively becomes a lender since he is privately negotiating the terms with the buyer. It sometimes may happen that a buyer’s credit history prevents him from obtaining a mortgage. That’s when a land contract helps him to get his home. How it works Land contract homes for sale by owners may also be known as “Trust Deeds”, “Contract for Deed” or “Privately Held Mortgages.” This allows: An owner to sell his home directly to the buyer Setting up a flexible and agreeable payment schedule Those with poor credit to buy a home. Repayment conditions Though the system may be flexible obviously there are conditions to follow. The repayment conditions would naturally differ from a traditional mortgage and may require the seller to renegotiate with the seller or try other financing facilities. A buyer will need to repay much earlier than in a traditional mortgage. The period is usually at least five years. This may also be based on a 15-year term or longer schedule A buyer can live in the house while making repayments Risk involved The seller definitely runs a risk. The buyer may not be able to repay for the house according to the initial terms whereas in a sale conducted with the bank he would have got the entire value immediately upon sale.
There is the risk of damage to the property through land contracts mostly make the buyer responsible for the upkeep. If you are looking into buying or selling a home through a land contract you will find plenty of land for sale in Michigan. Justensure that you get professional help as they will help you to: Instantly estimates the value of your home. Find comparable houses for sale. with evaluation and detailed price report through licensed professionals By sharing your listing on social media By creating professional-quality brochures and flyers. Identifying quick and inexpensive improvements to increase home value Give you the tools you need to negotiate like a pro. Create your profile. Keep in mind that land contracts are legally binding agreements and thus it is always wise to involve a real estate attorney to help you through the process and terms of the contract.