Our Guide to Sacramento Real Estate Contracts-As a real estate investor, when there is a deal at hand, there is necessarily a contract involved. While real estate contracts may seem intimidating, taking the time to familiarize yourself with the terminology you’ll encounter is well worth the effort. You’ll want to have a full grasp of contracts or a trusted guide to review everything on your behalf before you enter into any agreements. This knowledge will help you feel confident and assist in making wise choices as your investment business grows. Understanding the different purposes of these styles of real estate contracts will be very beneficial to you in the long run. Here is our guide to Sacramento real estate contracts.
Contract Assignments
While it may sound complicated, Sacramento real estate contracts are often assigned to another buyer. In this way, real estate investors facilitate sales as a wholesaler between the seller and the end buyer. In other words, the original buyer has sold the rights to buy the house to another buyer. The end buyer pays an assignment fee, which is typically very small, and then proceeds with the purchase of the home from the seller.
“Subject To”
Selling property as “subject to” an existing loan is yet another way that Sacramento contracts may be written. This clause in a real estate contract allows a distressed seller, who may otherwise lose the property, to assign payments and right of residency to the buyer. Ownership of the property remains with the seller, who is still responsible for the original mortgage with the lender. The buyer is under no obligation to the lender, so should the worst happen and they fail to make the payments, regrettably, it is possible for the property to end up in foreclosure.
Purchase Agreements
A purchase agreement is what may be considered the most common style of Sacramento real estate contracts. This is a fairly simple and straightforward sale between the seller and buyer and contains all the elements of a legally binding contract. If you are working with an agent, it will likely be a state or association contract. If the sale is directly between the seller and the buyer, then the general purchase agreement is typically used. As for properties other than single-family, you may need to make use of a property-specific form.
Lease Agreements
If your plans involve becoming a landlord, your Sacramento real estate contracts will involve lease agreements. This guarantees the tenant the use of the property, for a specified period, while at the same time providing you with a guaranteed monthly income. These contracts are carefully laid out to avoid any confusion or misunderstanding of any issues that may arise and what exactly is expected from each party involved. You’ll want to be certain that you’re meeting all local, state, and federal guidelines.
Power of Attorney
While not commonly thought of, the power of attorney can be extremely useful in real estate contracts. Through the use of the power of attorney, you can convey your rights to conduct business to someone who is entrusted with your finances, an attorney, or an agent. They come into play when the owner is either not available to conduct business or is incapacitated, has had an accident, or is in seriously declining health and unable to conduct business any longer.
Rent to Own
The rent to own strategy is advantageous real estate contracts for Sacramento investors. As the seller, you collect monthly rent along with additional monies. The buyer has the ability to try the house out for a specified time period. There are two types of these contracts, the option to buy or the agreement to buy. The agreement to buy tends to be much more desirable to sellers, in general, given that the home must be purchased at the end of the agreement period by the renter. This strategy allows buyers time to build savings towards a deposit on a conventional loan and find financing. Should your buyers have chosen the option contract, they are not obligated as in the agreement to buy. Should they be unable to qualify for a mortgage loan the renter can simply walk away at the end of the agreement.
Do not let intimidating contracts stop you from success in your investment business. The professionals at Darren Buys Homes Cash are the best guide you could have to walk you through real estate contracts, we make your Sacramento real estate investment business easy. At Darren Buys Homes Cash, we take the time to listen to your dreams and help you make plans, and update plans as your life and goals change over time. When a great deal can be yours, you will know you’re using the contract that best suits your long term investment goals. Why not get started now? Just send us a message or call Darren Buys Homes Cash at (916) 300-7962 today!
Q Will you be listing my home on the MLS or actually buying it?
A Great question. We’re not agents, and we don’t list homes. We are professional home buyers: We buy homes in Sacramento that meet our purchasing criteria. From there, we may repair the home and resell to another home owner or keep it as a rental ourselves.
Q Do you pay fair prices for properties?
A Many of the homes we purchase are below market value (we do this so we can resell at a profit to another home owner). We are looking to get a fair discount on a property. However, in our experience, many sellers aren’t necessarily expecting a large “windfall” on the property but rather appreciate that we can offer cash, we close very quickly (no waiting for financing), and no time or effort, or expense is required on your part of fix up the property or pay agent fees. If that’s what you’re looking for and you see the value in getting your home sold fast…let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give…but it’s good to know what we’re offering!)
Q How do you determine the price to offer on my mobile home?
A Great question, and we’re an open book: our process is very straightforward. We look at the location of the property, what repairs are needed, the current condition of the property, and the value of comparable homes sold in the area recently. We take many pieces of information into consideration…and come up with a fair price that works for us and works for you too.
Q Are there any fees or commissions to work with you?
A This is what makes us stand out from the traditional method of selling your home: there are NO fees or commissions when you sell your home to us. We’ll make you an offer, and if it’s a fit then we’ll buy your home (and we’ll often pay for the closing costs too!). No hassle. No fees. We make our money after we pay for repairs on the home (if any) and sell it for a profit (we’re taking all of the risks here on whether we can sell it for a profit or not, once we buy the home from you…the responsibility is ours and you walk away without the burden of the property and its payments…and often with cash in your hand).
Q How are you different from a real estate agent?
A Real estate agents list properties and hope that someone will buy them. The agent shows the properties to prospective buyers if there are any (the average time to sell a property in many markets right now is 6-12 months) and then takes a percentage of the sale price if they find a buyer. Oftentimes, the agent’s commission is 3-6% of the sale price of your home (so if it’s a $100,000 mobile home, you’ll pay between $3,000 – $6,000 in commissions to an agent). Agents provide a great service for those that can wait 6-12 months to sell and who don’t mind giving up some of that sale price to pay for the commissions. But that’s where we’re different: we’re not agents, we’re home buyers. We don’t list homes. Since we’re actually the ones buying the home from you, and we pay with all cash…we can make a decision to buy your home within a couple of days (sometimes the same day). Again, we make our living by taking the risk to buy the home with our own cash, repair the home, and market it ourselves to find a buyer (which is the hard part in this market).
Q Is there any obligation when I submit my info?
A There is absolutely zero obligation for you. Once you tell us a bit about your property, we’ll take a look at things, maybe set up a call with you to find out a bit more, and make you an all-cash offer that’s fair for you and fair for us. From there, it’s 100% your decision on whether or not you’d like to sell your home to us… and we won’t hassle you, won’t harass you… it’s 100% your decision and we’ll let you decide what’s right for you.
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We buy properties from owners like you, in all situations. From divorce, foreclosure, death of a family member, burdensome rental property, and other situations. We buy houses for cash in Sacramento. Sometimes, homeowners have lives too busy to take the time to do all the things typically needed to prepare a house to sell on the market. If that describes you, tell us about the property you’d like to sell. We can help you sell your home quickly and for cash.
The easiest way to sell your house fast in Sacramento
We believe selling a house in Sacramento should be fast, and hassle-free. If you’re interested in selling your house in Sacramento, CA, we can buy your house with a fair all-cash offer. We work on your schedule, and best of all, when you sell to us, you sell it as-is. Walk away without doing any repairs. We’ll even clean out the property for you. It’s that easy.