Home / Buying A House / Myrtle Beach Real Estate Owner Financing - Deb Lewis, Coldwell Banker
Bear with me on these numbers: they are meaningful to the issue of Myrtle Beach real estate owner financing. One of the most meaningful calculations The National Association of Realtors? makes is the Housing Affordability Index. An Index value of 100 means that the average (actually, ?median?) family?s income is exactly the right amount to qualify for a typical 20% down mortgage on a median-priced home. It would be tight, but doable. That?s what a ?100? means.
In the latest report this spring, the Index across the whole country was higher than 200! ? 204.3, to be precise; up there in ?never-before? territory. And it?s been there since January! Yet banks are still not lining up to approve mortgages ? for the number of reasons we?ve talked about before. It?s why some buyers and sellers have started to look for alternative ways to sell and buy a home; and begun to look in the ?for sale by owner? (?FSBO?) realm.
Myrtle Beach real estate that is for sale by owner isn?t being sold through a licensed agent, forcing a potential buyer or his agent to deal with the seller directly. If the home has been on the market for an extended period and the homeowner does not have a mortgage to pay off, a buyer can sometimes interest the seller in owner self-financing. In such a deal, the buyer gives his or her down payment and installment payments directly to the seller. As anyone would guess, this approach has its own special Pros and Cons.
The biggest Pro for the buyer is, obviously, easier financing. The biggest Pro for a seller is the potential to make a sale where none was possible before. As can be inferred from the Affordability Index, many people can afford a mortgage, but cannot find a traditional lender.
But speaking of problems, there are some ?Cons? to consider. If the buyer stops making payments, a seller must evict and foreclose on the property ? both time-consuming and costly procedures. A For Sale by Owner financing deal gone sour is especially problematic if the seller is dependent on the income from the home. And buyers need to pay attention, too.
When dealing with a For Sale by Owner transaction, there are a variety of potential legal loopholes and title issues that our Coldwell Banker Myrtle Beach real estate sale and mortgage disclosures and contracts are specifically set up to avoid. In all cases, it is wise to consult a trusted financial professional and attorney before signing anything.
While a home listed For Sale by Owner with attractive terms (like owner financing) can be inviting, having a licensed real estate professional on your side can make all the difference. If you are considering buying or selling Myrtle Beach real estate, I am always here to be your real estate resource! Give me a call at 843.360.0440 or shoot me an email at Deb@ReachMyrtleBeach.com if I can help. Deb Lewis, Coldwell Banker Myrtle Beach Real Estate.
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