Homes for Sale in Sugarland TX: jimmy farag

See Owner Financing homes for sale in Houston, Sugarland, Missouri City, Spring, Katy, Pearland and surrounding areas

Thursday, June 28, 2012

What are the benefits of owner financing to buyers and sellers?

Buyers

With the economic conditions in the last couple of years in the country, many people went through some hard times and resulted in loss of credit points. In the same time, banks have been adding more and more requirements and restrictions regarding credit score.

People still want to live in a house but don't want to rent and don't have the credit to qualify for a mortgage. So here comes the owner financing as an option. Owner financing or seller financing is a process by which the seller offers to be your mortgage provider.

Here are some of the benefits to buyers who are interested in owner financing homes in the Houston area.

Qualification

The buyer may have poor credit due to any reason like job loss for a while that made the buyer default on bills, student loans, bankruptcy, divorce, transferred to a new job after a period of unemployment or self-employed who is not reporting the income and cannot meet mortgage requirements.

Seller's requirements are less restricted than regular lenders.

Improving Your Credit

With the assistance of some escrow agencies, they can report to credit bureaus that the buyer is making payment on the current owner financing loan which should help the buyer improve the credit score in a reasonable period of time.

Loan Costs

An additional benefit for the owner financing transaction, the buyer doesn't have to pay all the fees charged by lenders to get a loan.

Terms

Owner financing terms vary from one house to the other as each house is individually owned and each owner might have different requirements. In general, most of sellers require at least 10% down payment, interest rate can be 7-9% and a balloon payment in 3-5 years. Balloon means that the buyer will need to refinance with regular mortgage in 3-5 years.

Closing

Going through a mortgage company, it can easily take 40 days to close on a house. With owner financing, the whole process can be done in a week.

Sellers

For Home sellers, they are also been affected by the restrictions imposed by lenders and waiting for 2-3 weeks hoping that the underwriter will approve the loan but unfortunately when the loan process goes south, the seller has to restart the whole process again with a new buyer.

That being said, so sellers have to consider some creative ways like owner financing to sell their house.

Price

With owner financing, the seller is offering a lot easier qualifications than a lender which gives the seller the privilege of asking for the full market price for the house.

Downpayment

Seller may ask for a downpayment that covers the broker fees, the closing costs, and some extra cash in hand. Also, with the use of the escrow agency company, they can service the loan for the seller with some small fees (usually charged to the buyer) they will collect the monthly installment from the buyer and pay the original mortgage of the seller which provides peace of mind for both the buyer and seller.

Closing

As discussed under the buyers section, closing can be done in a matter of one week.

For more information, contact Jimmy

Jimmy Farag, REALTOR

Realm Real Estate Professionals

Phone: (832) 303-5000

Cell: (832) 744-7424

Fax: (281) 598-5402

Tuesday, May 17, 2011

Sugar Land Market Analysis

SUGARLAND MARKET ANALYSIS

Homes for Sale

860

List Price

$43,000 - 3,495,000

Houses Sold

306

Sale Price

$45,000 - 2,950,000

Average Days on Market

72 days

Average Price per Sq. Ft.

$81.13

This information is about all the Homes in Sugarland TX, the analysis can vary from one neighborhood to another. For more information about the market analysis in your neighborhood, please feel free to contact me any time for FREE consultation.

You can also see all the Homes for Sale in Sugarland

Search by

Zip Code: 77478 - 77479 - 77498

Neighborhood: Avalon, Barrington Place, Greatwood, New Territory, Sugar Creek, Sugarmill, Sweetwater, Telfair

For more information, contact Jimmy

Jimmy Farag, REALTOR

Realm Real Estate Professionals

Phone: (832) 303-5000

Cell: (832) 744-7424

Fax: (281) 598-5402

Why My House didn’t sell?

Why My House didn’t sell?

If you are asking this question that means that your house was either listed with a realtor or listed as For Sale By Owner (FSBO) didn’t sell. Getting phone calls from realtors the day the listing of your house expired telling you “we know why your house didn’t sell”? Others calling telling you “A house like this can be sold for $20,000 more”? OR Your asking price is way too high?

Honestly, I can’t tell you why your house didn’t sell without seeing it. There are many conditions that can be the reason for not selling. It can be the location, the condition of the house, the age, the upgrades, the floorplan, size of the yard, even a pole in the backyard can affect the price.

Location: Most of the buyers prefer houses that are in a cul-de-sac or a quiet neighborhood that is safe for the kids. If you are on a busy street or a busy street passing behind your house, that a negative point that has to be considered in the price.

Condition: When we are talking about condition, we are talking about the outside and the inside. Most homeowners maintain the inside and forget about the outside. The outside appearance is the first impression about the house. Many buyers drive around to see the area and how it looks from the outside before calling their agent for showing. Do you do regular treatment for termites and insects? Do you check the condition of the roof and foundation?

Upgrades: There is a difference between upgrades and maintenance. If your water heater is old and you change it, that a maintenance and is not a reason for a higher house price. Let’s think about it the other way, if you don’t replace the water heater, you will have to drop the price or give the buyer credit for it, but if you replace it, that will keep your house at the market price. Upgrade is changing the carpet with hardwood floors or laminate countertops with granite.

Foreclosures: Is there any foreclosed homes for sale or sold in the last 6 months in your neighborhood? Sold foreclosures can affect the market value of your house even if your house is in a better condition. Current foreclosures are your competitors in the market because banks price them to sell fast and noticed that many of them now drop their price every month, it can be an aggressive drop, $10,000 for couple of month and then starting dropping it by $5000.

These are just some reasons, it can be different from one house to another. So before you ask yourself why your house didn’t sell, check the competition, the condition, the location and if the price is matching accordingly. The price has to be the market price not just the price you want to get.

I hope that this blog is an eye opener for you and has some AHAs for you.

Please feel free to contact me any time.

Thanks,

Jimmy Farag, REALTOR

Realm Real Estate Professionals

Phone: (832) 303-5000

Cell: (832) 744-7424

Fax: (281) 598-5402