Category Archives: Owner Financing

Low Inventory and Price Increases in DFW Real Estate

It appears this ‘seller’s market’ in DFW is still going strong! Thanks to an extremely low inventory of homes for sale, current DFW home values are increasing by the day. In some cases, homes prices are up $20,000-$40,000 in just one year’s time! In addition, with such low inventory in the DFW housing market, buyers are fighting over homes the very day they hit the market, driving up the final sale price.

According to The Dallas Morning News: “Home prices in North Texas are now at a record high. And Dallas prices in the Case-Shiller index are now 13 percent ahead of where they were at the peak of the housing market before the recession. […] Dallas-area home prices are currently rising at almost twice the long-term average rate, driven by a shortage of supply and an annual population growth of more than 100,000” (http://www.dallasnews.com/business/residential-real-estate/20150331-dallas-among-top-u.s.-markets-for-home-price-increases.ece).

If you or someone you know is interested in seeing how much your home’s value has increased, local North Texas expert realtor, Angelina Cook with DFW Realty by Design, would be happy to set-up a listing consultation with you. Whether you are in Arlington, Fort Worth, Dallas, or elsewhere in North Texas, this strong seller’s market is such an amazing opportunity to take advantage of your home’s increased value. Don’t let this market pass you by – it won’t last forever!

Contact Angelina Cook

Ph: 817.217.7779

Email: angelina@dfwrbd.com

Facebook: DFW Realty by Design

Website: http://www.dfwrbd.com

Advertisements

Strong Seller’s Market in DFW

It’s a perfect storm for a strong seller’s market in the Dallas/Arlington/Ft. Worth area. North Texas home prices are up 12% from last year. Housing inventory is currently very low in the DFW area, thus driving up the prices for sellers. Even better for sellers, most homeowners have a great deal more equity in their homes than they thought due to the North Texas market surge over the past several years.

If you have been thinking about selling your home, now is the time! April is historically a busy month for real estate, as many people choose Spring to put their home on the market. Even though DFW housing inventory is low, there’s no telling how much the market will be flooded with homes in April and May. If you are looking to make a huge profit on the sale of your home, don’t wait – now is your opportunity. The market is extremely hot right now and sellers have the upper hand.

If you want to take advantage of this strong seller’s market, expert North Texas realtor, Angelina Cook with DFW Realty by Design, is ready to get your home sold! Contact Angelina today to get in while DFW is one of the top housing markets in the U.S.

Contact: Angelina Cook

Ph: 817.217.7779

Email: angelina@dfwrbd.com

Facebook: DFW Realty by Design

Owner Financing – Is it the right decision for you?

If you are on the house hunt, you may have come across a home for sale listed as ‘Owner Financed’. Here’s a quick guide to see if it is a good fit for you as a buyer or seller!

1. What is Owner Financing?

When the buyer finances the purchase of the house (minus the down payment) through the seller. Basically, the seller gives the buyer the loan on the home, instead of a conventional lender, such as a bank.

2. How is the loan paid?

The buyer and seller agree on the loan terms: interest rate, monthly payment amount, length of loan (usually short, 3-10 years), and consequences of default. Often, there is a balloon payment – an oversized payment due at the end of the mortgage.

3. How much is the down payment?

Amounts will vary (up to 30% or more), but most owner financing sellers will want a significant amount down to protect their equity. If a buyer is willing to put a hefty amount down up front, it gives the seller more confidence that the buyer is unlikely to go into foreclosure.

4. What are the different types of Owner Financing?

Land contracts;

Promissory notes and mortgage: all-inclusive mortgage, junior mortgage;

Lease purchase agreements

5. Why is Owner Financing good for a buyer?

A buyer does not need to go through the difficult qualification process of a conventional lender; although most sellers will at least do a credit check. The flexibility of designing your own payment plan that fits your needs is very appealing to most buyers. Little to no closing costs is one of the biggest perks, as there are none of the fees that go along with a lending institution. In addition, change of possession of the home usually occurs faster since the seller and buyer can schedule their own closing date.

6. Why is Owner Financing good for a seller?

A seller receives a nice monthly income by serving as the lender. Sellers have the opportunity to make money on a current investment as the interest rate is usually higher for owner financing than traditional financing. A seller can ask for a higher interest rate than a traditional lender depending on the market and the popularity of the home (i.e. if traditional interest rates are 4%, a seller could ask for 6-10%). Since owner financing is rare, these homes tend to sell pretty fast because they stand out. The seller can often get full asking price when selling with owner financing. A seller will receive a tax break compared to a traditional home sale because you only have to report the income received per year. It is also a great opportunity to get a buyer in your property faster as the buyer can take advantage of the flexibility of owner financing while they work with a lender to determine what they need to do to obtain traditional financing before the balloon payment is due.

If you are looking to buy or sell an Owner Financed property, expert realtor Angelina Cook with DFW Realty by Design is at your service! Contact her today to take advantage of this unique way to buy or sell your home.

Contact: Angelina Cook

Ph: 817.217.7779

Email: angelina@dfwrbd.com

Facebook: DFW Realty by Design