Hi Dothan – thanks for asking! The package explains all of the standard steps for handling the closing in-house, but it’s geared more towards vacant land investors (and vacant lots are a bit simpler to close on than a standard home). If you’re working with a bank, they might even require that you go through a title company (and honestly, if the purchase price is $10,000 or higher, it should be fairly easy to justify the closing costs).
Seth, I hope I’m not pestering with too many questions. Your web site has been invaluable. It’s probably covered on your web site, but I may have missed it: In a purchase transaction where we are closing the deal ourselves with a Notary, when do we mail the seller their cashier’s check. After the County returns your stamped documents? Supposing the seller is uncertain. What would you think of (A) leaving the cashiers check with the Notary to mail directly to the seller upon recording of the transaction or (B) including something in the packet we mail to the effect of “transaction will be voided if seller does not receive payment in the agreed upon amount of _________________ within two weeks of recording”. I like the idea of including a copy of the cashiers check. Or is this just too much of me worrying over nothing?
Things get tricky if the listing agreement confers an exclusive right to sell. This means the real estate agent has the sole right to sell the property. All offers must go through him or her, and for any sale, you're obligated to pay the agent the commission spelled out in the contract, according to Marc D. Markel, a board-certified Texas attorney in residential and commercial real estate law. Agents rely on these exclusive listing agreements to avoid putting in what can be months of free work without seeing a payoff. For this reason, the agreement outlines the many ways an agent earns a commission, including what happens if the seller breaches the exclusive agreement.
I’ve heard that it’s very hard to sell land/property with a quitclaim deed, and buyers (whether investors or the open market in general) will only want warranty deeds. So without me having to spend $2000 or so doing a quiet title or using Tax Title Services to make the deed fully clean and marketable and insurable, could you go into some depth explaining how to quickly flip/wholesale land parcels that I’m offering and advertising with a quitclaim deed I got from the county? What do I need to know for this, and how do I structure it to make it attractive, and what steps are involved? Is this something that investors/rehabbers are fine with accepting (if the price is attractive?)
My neighbor and I both want to do this as inexpensively as possible. I’m not expecting to make much more than what is needed to cover the mortgage payoff and a little extra to cover closing costs. I’m not sure what level of professional help needs to be involved, but the realtor who handled the deal for the home I just bought said it was as simple as contacting a title company to cover the necessary paperwork. Is that true?
Land contracts are useful instruments for sellers who are selling a home and contemplating carrying the financing for a buyer. It gives sellers a built-in income and generally a better interest rate than rates offered on money market accounts or certificates of deposit. However, a prudent seller should take steps to protect equity and ensure the buyer can fulfill the terms of the land contract.
Make no mistake, though: Working without an agent requires a huge investment of time, knowhow, and effort. You need a wide range of skills, from home staging to salesmanship to negotiating. And you need to be able to completely divorce yourself from the emotions that can arise when a buyer takes a dig at your curb appeal or lowballs the offer on the beloved home where you raised your family.
You can also look to certain companies and organizations that have a concentration of people that may fall in the above mentioned roles such as investment companies (i.e. Charles Schwab, Fidelity), financial advising companies (i.e. Morgan Stanley, Merrill Lynch). There may be a higher concentration of people who can both afford and want to build their own custom homes or to build income-producing properties. Try linking yourself to financial advisors who may already know of people who have these types of dreams. This isn't a comprehensive answer of all the possibilities but just some thoughts. Good luck!