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Beginnings are always tricky - How do you go about buying a home? Suppose you’re fed up with your current rent and want to dip your toes into homeownership. So, you begin entertaining the idea of financing a home in 2023. However, you suddenly realize that you (somehow) amassed a bad credit score that reduces your chances of getting a conventional bank loan to zero. You would be surprised how many Americans walk in your shoes. But instead of giving in to despair, we suggest you go about alternatives to buying a house with lousy credit. And one of the trendiest ways to purchase a home (but we should warn you upfront that it is not without its own hazards) is seller, creative, or owner financing. Owner financing 101The rules of owner financing apply as much to buying or investing in real estate as to any other business. The gist is that you establish a business rapport with the seller instead of applying for a mortgage loan lender. Before we help you locate owner-financed properties in your area, let’s explore their pros and cons! Which are the outstanding perks of doing business with owner financing?Taking a first look at how owner financing works helps you realize you can come to flexible terms with the owner instead of dealing with a traditional lending institution. Thus, you can negotiate the interest rate, down payment, and repayment agenda. Secondly, you can considerably cut your closing expenses since you won’t have to pay the standard fees a bank loan application charges. Thirdly, since no bank or loan broker evaluates your mortgage eligibility, you can close indefinitely faster (and cheaper.) Be aware of the dark side of owner financing!Don’t get carried away by the owner financing’s short-term advantages, though! Essentially, the money you save in the short run, you make up for it in time. Sellers know the risk they expose themselves to when choosing owner financing. For instance, you can default, and they end up with potentially huge property renovation costs. For this reason, they will (presumably) charge you a higher interest rate than a bank would. Secondly, you must prepare for a so-called balloon payment, the final sum of your loan repayment due in six to ten years (depending on contract terms.) Suppose you can’t finance that lump sum. Then, you risk losing all the money you have invested in the project up to that point. How to track down owner-financed homes in your neighborhood?Now that we have established the meaning of owner financing let’s dive deep into creative ways and strategies to find properties closer to you than you’d expect! Reach out to your friendly local realtor!Licensed and expert local real estate agents are updated with new properties listed on the market. For this reason, they also have access to owner-financed homes for sale. So, once a seller decides to offer their asset with creative financing, your local realtor will know and pass the information on to the interested buyer or investor. Besides, they may personally know homeowners willing to do a seller-financed transaction without it ever being listed. But their assistance doesn’t end there! They can negotiate a better interest rate and more advantageous terms in general. You can visit real estate listing sites that feature seller-financed homes or multiple-listing-service websites. You’ll find this criterion in the property description. However, not all US counties offer access to MLS sites only to real estate agents. Do your own personal research!The main point here is to limit your research to paid-off houses. So there should be no mortgages, debts, or liens left behind and weighing down on the property. Look into inherited properties or find burn-out landlords!Older homes or inherited properties (whose current owners live elsewhere) stand a better chance of being paid off. Note that newer constructions might be in foreclosure, significantly complicating your situation. Besides inherited assets, you can find landlords who suffer from the fatigue of leasing their property and finding or dealing with new tenants. We recommend you start your research in US cities where it’s worth being a landlord. Another extreme instance is trying your luck with landlords who had tenants recently evicted. How to go about finding public eviction records? It would help if you started at your local courthouse or the appropriate court website. These two cases present mutually beneficial scenarios for both parties involved. A neglected house’s proprietor can be open to owner financing.While driving through your neighborhood, you can search for neglected homes and vacant or run-down properties. Why do we recommend dilapidated houses? Because the owner might sell the property as is. Since they have no interest in moving in or investing a substantial sum in a property face-lift, they may be willing to sell it with owner financing. Also, property tax payments can be a drag for them. Millennials owning a second homeBeing a bachelor sure has countless perks, and your housing needs aren’t that sophisticated. A two-bedroom and one-bathroom condo will suffice. However, once a spouse moves in, and a child is born, your space requirements suddenly become emphatic. You move out and buy a big house with plenty of room. What happens with the first, smaller home? If you don’t sell it instantaneously, you become a (passive) landowner. Suppose you don’t want to go through the hassle of renting out your first co-op, townhouse, or condominium. Then, the chances are that you are prone to an owner-financing negotiation with a potential buyer. Social media can help you find owner-financed real estate.You can look after the original owner in the county property records. Or you can track it on trending social media platforms, for example, Facebook. We also advise you to join neighborhood communities and real estate groups featuring buyers and sellers. Someone will eventually recognize the property you are searching for and provide valuable updates. Then, you can contact the owner and see whether they are open to seller financing. This method is free of charge and takes a little energy and time on your behalf. Rarely, if you’re lucky, you can stumble upon a “For Sale by Owner” sign. Then, you can contact the seller directly and inquire about owner financing. Here is a valuable tip for you. A buyer’s market facilitates this financing because owners don’t find buyers quickly. For this reason, properties can stand for a more extended period on the market. As time passes, their owners may lose patience and can sign an owner-financed agreement with you. ConclusionUndeniably, owner financing can benefit first-time homebuyers and real estate investors. A direct and flexible relationship between the seller and buyer facilitates the negotiation of better terms. You can find seller-financed properties through a professional agent. Secondly, you can do research online by browsing MLS websites. Thirdly, you can explore the neighborhood you wish to buy real estate personally. It would be best to focus your attention on ignored, dilapidated, or forlorn properties, the owner of which obviously doesn’t care about keeping the house in good shape. In addition, you might want to find inherited homes, the heirs of which don’t want to hold onto their inheritance. Another route is searching for tired landlords who don’t want to do anything with leasing their property. Happy hunting!
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If you’re planning a vacation to Florida, we don’t blame you. This state is home to some of the most beautiful scenery and entertaining attractions in the country, making it an obvious choice of destinations for anyone seeking a great vacation destination. The best places to visit in Florida are chock full of excellent ways to spend a holiday! Many of Florida’s attractions are centered around the state’s many beautiful beaches, almost all of which boast immaculate white sand and clean, cool water. In cities known for their beach resorts and hotels, these beaches also present an excellent opportunity to lounge on a beach chair and sip on a refreshing beverage. That’s what we call vacationing in style! Another reason people visit Florida is its affordability. With numerous affordable vacation cities, a vacation to this state is all but guaranteed to cost you less than a vacation in other states with similar attractions. From the price of fuel and food to the wide availability of inexpensive conventional and unconventional lodging options, this is one state that won’t cost you much to take a vacation in! While these are without doubt excellent reasons to visit the state, there’s another reason that we would argue is more compelling than any of the reasons listed above. That reason is Florida’s exquisite natural scenery! With dozens of breathtakingly beautiful state parks, this state is perfect for nature lovers from all walks of life. Naturalist tourism in Florida If you’re planning to visit Florida to take in its beautiful scenery, there are a few things you need to anticipate before you pack your bags and start making your itinerary. First of all, you’ll need to know what Florida’s natural areas have in store for you, and how you should prepare for these natural environments. First off, many of Florida’s state parks are swampy in nature. This means moisture, humidity, mosquitoes and hazardous critters of every species and genus. If you want to stay safe from these elements, you’ll need to pack mosquito repellent, sturdy garments, protective shoes and other accessories you predict you’ll need. Then you’ll need to think about what exactly it is that you’ll be doing while you’re in the state. If you’re planning on photographing the scenery, you’ll want to bring your most rugged camera equipment and accessories. Nature watchers will also want to bring binoculars in order to get up close and personal with the wildlife without actively putting themselves in danger. After you’ve packed for the trip, you’ll want to start picking destinations for your itinerary. So where will you go? We have several suggestions, which come in the form of Florida’s beautiful state parks. Who knows, maybe we’ll throw a national park into the mix too, just for fun. With that said, let’s take a look at some of Florida’s most beautiful state parks! Manatee Springs - Chiefland, FL If you’ve ever been to Florida, chances are you completely missed out on the north-central part of the state. This is understandable given the fact that most of Florida’s well-known attractions are in the southern regions of the state, but we think it’s a shame nevertheless. If you’re interested in righting this wrong, we’ve got an excellent suggestion: visit beautiful Manatee Springs state park! Named after the gentle giants that traverse the crystal clear waters of its springs, Manatee springs state park is the perfect place for a family camping trip or a solo adventure. Spacious and well maintained campgrounds offer plenty of room for roughing it in a tent or living it up in an RV; the choice is yours! During the summer, you can enjoy the most enjoyable part of Manatee Springs, the titular spring. This natural wonder is a literal wellspring of joy, providing visitors with an excellent place to swim, dive, relax and cool off on a hot July day. At a steady 72 degrees year round, the water here is always center stage. Swimming isn’t the only thing you can do here at Manatee Springs State Park, however; with miles of walkways, natural canals and direct access to the famed Suwannee River, this is one place that you don’t want to miss. Whether you go it alone or travel here with your troupe of friends, you’re guaranteed to have a good time! Dudley Farm - Newberry, FL Taking things in a somewhat different direction, the next state park on our list isn’t a nature preserve or a natural spring. It is, in fact, a farm! This isn’t just any old run-of-the-mill farm, however; it’s a historic natural park. With a history that dates back to the 19th century, this park offers visitors a fascinating glimpse into turn of the century Florida farm life. The grounds at the Dudley Farm are staffed by a dedicated team of historical reenactors who bring the exhibits to life with their committed recreation of the events that transpired on the farm in its heyday. From everyday tasks such as feeding livestock to and tending the fields to more in depth tasks such as crushing and refining sugarcane for the manufacture of sugar, there’s plenty to see here. Speaking of sugar production, its manufacture represents one of the most interesting aspects of the Dudley farm. With a period-correct cane press on site, those who visit during the proper season can bear witness to the fascinating spectacle of sugar production. During this time of the year (typically between August and October) you can watch as the sugarcane is crushed using mules and then refined in monolithic sugar pans over a roaring fire. The buildings on the Dudley farm are also preserved in a pristine state, complete with all of the trappings you’d expect to see on a 19th century sugar farm. From the archaic cloth production spindle, spinning wheel and loom to furniture that has survived over 100 years in the Florida heat, the entire farm is a marvel of historic proportions. If you’re in town, you can’t miss it! Everglades National ParkRemember when we teased the fact that we were going to talk about a national park? This is it, baby! Located in southern Florida, Everglades National Park is one of the most unique and fascinating National Parks in the country. With over 1.5 million acres of pristine wetlands to explore, this is one park you don’t want to pass up an opportunity to see. So what all does this park have to offer, you ask? The answer is “lots!” For starters, the Everglades are an excellent place to observe the flora and fauna native to the state of Florida, with tens of miles of board walkways and daily airboat tourist available to take you roaring or crawling through the swamps and glades. Anglers will love the Everglades too, as it has some of the richest fishing spots of any locale in the state of Florida. With a phenomenally varied list of species to be caught, there’s enough color and variety here to make all but the most stoic fisherman or woman salivate. Bring a pole, a tacklebox and watch the fish bite! Nature photographers too will find themselves right at home in the Everglades, with plenty of natural scenery to photograph, as well as fascinating flora and fauna. The landscapes here vary from exquisitely beautiful to mysterious and surreal, but one thing is for sure: you’ll burn through film or memory cards like a stock car burns through rubber at the Daytona 500! ConclusionNo matter which of these breathtakingly beautiful state and national parks you visit, it’s safe to say that your visit will conclude with you thoroughly convinced that Florida has more to offer than mere beaches and tourist attractions. This is a state populated by fascinating creatures, beautiful flora and spellbinding landscapes, and nothing proves this more definitively than Florida’s many parks!
With so many people deciding to relocate to this incredibly thriving suburb of Dallas, Texas, knowing a few things about the Frisco real estate market ahead of time is essential. Now, we don’t mean to scare you, but the Frisco real estate market is not for the faint of heart. Things move fast in a market that’s been booming for such a long time, and this is a city where making fast decisions for the best interest of your family is a must. When you take a look at real estate trends across the country, you’ll probably notice that throughout every economic struggle, the general direction is appreciation. Even after a prolonged period of economic turmoil and insecurity, prices start climbing as soon as the uncertainty is washed away. In some cases, like the Frisco, Texas, real estate market, the dip is limited, and the growth following it is, often, accelerated. There is no simple path towards homeownership, but Frisco’s residents will need to understand their situation. By contacting some of the best real estate agents in Frisco TX you will find your own home in this fantastic city as they know the in’s and out’s of the city’s housing market. They’ll surely tell you to get your financial paperwork pre-approved ahead of time, get ready to make fast decisions, and be as flexible as possible. Frisco’s Housing Market Influencers If you want to understand why Frisco's real estate market is so competitive, all you have to do is check out the quality of life in the city of Frisco, TX. This city has many things going for it, from the growing job market to the education system, finding something that is not working here is difficult. Buying a property in Frisco is a real struggle but not for the reasons you might expect. Just so you get an idea of how real it is, some houses listed for sale have around 90 offers … each. Population Growth When you look at cities like Frisco, Texas, you’re bound to be amazed by what’s happening. Simply looking at the insane population growth that the city of Frisco, TX, has experienced over the last two decades will give you an idea. And yes, when we say two decades, we mean two decades. Before the year 2000, the city’s growth was starting to show a tender increase. When you understand that we’re referring to growth from 6,100 to 33,700, you’ll think the use of the word “tender” is wrong. Just take a look at what has happened since then. Between 2000 and 2021, Frisco’s population grew from 33,700 to 227,600. And yes, that happened over two decades. This can be seen as one influencer of Frisco’s real estate market. Economic Growth Another factor that affects Frisco’s real estate market is the city’s economy. All those people came to Frisco because they saw the opportunities available. Not only is Frisco the best of Dallas’s suburbs, but it has a thriving economy of its own. Just look at statistics that compare Frisco’s economy to that of Dallas or Texas as a whole. You’ll be surprised at the median income in Dallas’ suburb, especially when compared to the city it is a suburb too. The median household income in Dallas, TX is around $52,000, while in Frisco, TX, despite the city being Dallas’s suburb, the median household income is $127,000. Unemployment rates are also lower than Dallas’s, and this is only the second influencer for Frisco’s housing market. Educational Strategy The last influencer that affects Frisco’s housing market regardless of economic trends in the city’s incredible education system. Regarding the public school system, Frisco’s education is managed by the Frisco Independent School District as well as the Lewisville Independent School District, Little Elm Independent School District, and Prosper Independent School District. However, the large majority is under the supervision of Frisco ISD, consisting of 10 high schools, 17 middle schools, and 42 elementary schools. This incredibly well-developed school district leads to focused and strategic education that results in exceptional performances from the youngest citizens of Frisco. With over 60% of Frisco’s population having 4-year college diplomas, 18% having a master’s degree, and almost 5% having even higher education, the city invests firstly in the youngest of its residents. These children turn into highly productive individuals among the community that can easily find employment in Frisco’s growing job market. It seems like Frisco has got it all covered. The Pandemic Finally, we have to mention the pandemic and see how it affected Frisco’s real estate market. Amid the COVID pandemic, people started to worry about the economic effects and how the housing market will suffer. While there have been areas and sectors hit by these waves and are still struggling to get back on track, Frisco pushed through. The year 2020 saw a dip in the real estate market, but that dip wasn’t big enough to impact the long run. From the median home value of $424,000 experienced before the pandemic, the year 2020 only saw a drop to $419,000, this being the lowest median home value experienced. By July of 2020, the real estate market was back on its feet, and another thing happened. It might have come as an effect of social distancing with people wanting to move out of major population centers, but demand grew, and prices followed. Currently, the median home value in Frisco is at $426,000, and the trends show the accelerated growth will continue. Crash, Bubble, Boom, or What to Expect Social media sites are filled with countless content, from blog articles to youtube videos about real estate trends bound to level out the playing field, and, yes, this is another article like that, we must learn what to take for granted and what not to. Everyone, especially those interested in purchasing properties in cities like Frisco, Texas, are looking forward to a housing market crash, one that would follow the pattern of the last economic crisis. We all need to understand that might not be the case this time around. Worst-case scenario: Everything that follows this statement will be wrong, and a crash will occur, and you’ll manage to buy a property at a very affordable price. If that happens, you’ll be happy, and I’ll be wrong. However, when we talk about a housing market crash, we have to understand what that means. It means a lot of foreclosures, a lot of evictions, a lot of people left without an income, and neither of those should be things to be looking forward to. Real Estate Forecasts for Frisco, TX Now, getting back to the whole housing crash, bubble, boom, burst conundrum. I say it won’t happen because the current increase in prices in cities like Frisco is not based on low-interest rates that make it so that anybody can buy a house. The only reason the Frisco real estate market is appreciating at such a high rate is because there is an insane amount of demand. When there’s a high demand for a limited inventory of houses, prices increase because of bidding wars. These bidding wars result in houses getting 90 offers before selling and reaching a selling price that is far above the initial asking price. A competitive housing market like Frisco’s will experience pricing growth. Some people might be led to believe that what goes up will surely go down. For these people, content that promotes the idea of a housing crash is comforting as buying a home is difficult in a competitive market like Frisco’s. It makes them wait for the crash, but what if the crash doesn’t come? Like this, potential buyers end up postponing their milestones and waiting in vain. Understanding the Meaning of Value in a Real Estate Market The second thing that I want to mention is the terminology “above value” or “above asking price”. This deals with the selling price of a property. When we talk about listing price, we refer to the seller’s idea of value. Generally speaking, the offer that’s accepted is what the seller and the buyer have agreed upon as the fair price for that property, what the seller and buyer are comfortable with receiving and giving. During the appraisal process, the appraised value is the appraiser’s idea of just value for the house.
However, all of these are only opinions, and the only thing that matters is the price the buyer is comfortable with paying for the property. That is the true value of the property. In a situation that involves a lender, if the buyer determines that he/she is willing to pay $500,000 for a home that is appraised at $450,000, that means that the lender will give them a percentage from $450,000, and they’ll have to cover the remaining $50,000 in their downpayment. The real estate market is volatile, influenced as exemplified above by many factors. Looking back at the 2008-2009 housing market crash, we can see one big difference. Since then, the Consumer Financial Protection Bureau was created, in mid-2011, to protect borrowers from foreclosures and any other effects resulting from the inability to meet their mortgage payments. This was implemented by increasing the screening process and fairly enforcing rules that the lender must adhere to. This organization doesn’t completely dismantle foreclosures, but it does make it more difficult for a borrower to get to that point. The CFPB leveled the playing field and made it so that a real estate market crash can not happen on the same basis as the 2008-2009 crash. Conclusion We can see how a city’s sustainable growth spreads its influence during a quick overview of the real estate market in Frisco, TX. Being the most desirable Dallas suburb, the city of Frisco attracts people from all over the country, and those who move there don’t wind up regretting it. The natural result is that people from California, New York, and Illinois are outbidding each other to try and get their hands on a Frisco home. The city of Frisco continues to grow and those living there enjoy every second of it because that growth can be seen in the city’s quality of life. Make sure to Like and Share this article as many people might be looking at Dallas’s suburbs. We highly recommend getting your information from multiple sources, especially when it comes to real estate trends, and make an informed decision as best as you can. |
Theresa Hus
Theresa Hus is a member of the content team at The OFFICIAL Real Estate Agent Directory®, producing countless informative and trendy real estate articles for RealEstateAgent.com and its many outlets. Archives
April 2024
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