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What's the most cost-effective way to transfer RE between two private parties?

B

b0mbrman

Lifer
What's the most cost-effective way to transfer RE between two private parties?

These two people are not related and the previous owner still carries a mortgage.
 
To. Anyone?

Specifically, I'm trying to minimize commissions, taxes, and fees within the constraints of the law...
 
The most cost effective way is to not hire a middleman/agent to handle the transactions. Unfortunately, you will have to pay all of the taxes and most of the fees. You should still use a Title company to make sure there aren't any leins against the property, and using an escrow company will probably be mandatory since there is a mortgage being paid off. You will also have to have an appraisal done if the buyer is getting a loan. You should also have a home inspection done before the sale goes through. Basically, you can save the commision of the real estate agent, as long as you both agree on the price.
 
This is probably a silly question...but...so there's no way to "take over payments" the way you can with cars and such?
 
You should also use a lawyer with real estate experience. Should cost no more than a couple hundred bucks. I did this with the first house that I bought and it cost me $80/hr for two hours.

Using a lawyer will give you the peace of mind that you are not signing anything that is likely to come back and bite you.
 
Originally posted by: b0mbrman
This is probably a silly question...but...so there's no way to "take over payments" the way you can with cars and such?
Click to expand...

Taking over payments depends on the loan involved. There are lots of ways that the money could have been borrowed. Some banks sell assumable loans, however most mortgages are not assumable (more risk for the bank). The previous owner could have borrowed the money from Guido, in which case it would be up to Guido to decide if he wants you to owe him money.

Beyond that there are many safeguards to the actual transaction that are typically met when buying/selling real estate. I don't recall all of them, but the include things like
-transfer of the title
-title insurance
-homeowner insurance
-registration
-statements on the condition of the property
-statements on the conditions of assuming any loans
-proof of who the buyer and seller are.

You want someone with you to make sure that you are addressing everything that needs to be addressed. Most people do not buy and sell real estate frequently enough to know what all of the needs are. I chose to do this with a real estate lawyer. I think that there are also people who specialize in making the transaction happen, you might be able to hire such a person for less than a lawyer would cost.

 
Originally posted by: b0mbrman

These two people are not related and the previous owner still carries a mortgage.
Click to expand...

This is probably a silly question...but...so there's no way to "take over payments" the way you can with cars and such?[/quote]

Is the current seller is buying the property on an installment contract from the previous owner OR does the the current seller owe a mortgage to a bank?

Installment contracts and FHA loans can be assigned to or assumed.
 
Originally posted by: HomeAppraiser
Originally posted by: b0mbrman

These two people are not related and the previous owner still carries a mortgage.
Click to expand...
This is probably a silly question...but...so there's no way to "take over payments" the way you can with cars and such?
Click to expand...

Is the current seller is buying the property on an installment contract from the previous owner OR does the the current seller owe a mortgage to a bank?

Installment contracts and FHA loans can be assigned to or assumed.
Click to expand...

From a bank...
 
You could ask a realtor.

We found a realtor that would help us with the proper paperwork etc. when we bought our house from my in-laws.

We approached him, told him what we wanted to do, and he agreed to help for $500 flat. Since he didn't have to do any selling/listing/etc he cut us a deal.
 
Originally posted by: theknight571
You could ask a realtor.

We found a realtor that would help us with the proper paperwork etc. when we bought our house from my in-laws.

We approached him, told him what we wanted to do, and he agreed to help for $500 flat. Since he didn't have to do any selling/listing/etc he cut us a deal.
Click to expand...

What did it end up costing you, outside of his flat fee and the price of the house?

...if you don't mind me asking...
 
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