By assuming responsibility for selling your own house, you have the additional task of evaluating not just your land, but the people who wish to bid on it. Whether you are holding an open house or taking prospective buyers on a private tour of your home, you may be excited about the possibility of instantly obtaining a bid.
However, before you pop open the champagne bottle and toast an outstanding deal, it is important to take into account a variety of considerations when courting a home buyer. First do your homework, and stop any problems when it comes to writing a contract.Interested readers can find more information about them at Element Homebuyers
Here are a few things to consider when evaluating potential purchasers before you plan to sell. If you are not selling through a real estate agent, it’s also helpful to have the assistance of a mortgage loan officer.
Cash Flow-How does the buyer pay you for the home? Is there a substantial down payment? Would the buyer be forced to apply for home loans, and does he benefit if he does? Will the customer have a career or some stable income means to make payments with? Is he a reliable employee with outstanding credit scores. When you’re selling your house to another, you’ll certainly want to know if he’s good at paying the mortgage.
Accessible Assets-Assets can relate to various things when it comes to making a large purchase. Liquid assets can be characterized as cash ready or products that can be sold for cash to make up payments quickly. This category can include vehicles, aircraft, jewellery and other luxury objects.
In the event that a prospective borrower will default on a mortgage payment, it is best to check in advance to see what assets the borrower has.
Present Liabilities-Debt is, unfortunately, a fact of life. We have all had to work at one level or another to support the bills. Such liabilities should be taken into account when interviewing potential bidders when selling a house. A loan officer can help you determine if there is a certain amount of debt or liability in a potential buyer that can affect credit rating. Alimony and child care, college loans, lease and credit card fees, and other outstanding loans are known to be obligations.
History of Credit-This principle works hand in hand with obligation. If a buyer has to pay out other debts, how regular is he with payments? Has he defaulted on any previous loans? Had he declared bankruptcy then. Always factor to any potential buyer’s financial health.
Social History and Stability-Where in the past did the buyer stay in? Did he live in the same place for a long time or did he move from town to town for reasons unrelated to work? Character consistency is of equal importance to financial solvency. In this situation it will be prudent to work with an attorney or legal expert to find out which disclosure laws apply to you.