Cinegg, Home Seller in West Des Moines, IA

I am thinking about selling my townhouse on contract. What does this consist of?

Asked by Cinegg, West Des Moines, IA Mon Mar 19, 2012

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If you have a mortgage, the first step that you will want to do is check with your mortgage company and see if there is a "due on sale" clause that might keep you from selling your home on contract. The next step would be to consult an attorney for any legalities that you will have with selling on contract. The third step is marketing and finding a qualified contract buyer that has a down payment.

Typically when selling on contract a seller will require 10% down, 6-7% interest, and a 3 yr balloon amortized over 30yrs. Selling on contract can be a gamble so you will want to make sure you do it correctly and find the right contract buyer.

Josh Gillum, C.D.P.E
RE/MAX Real Estate Group | The Gillum Group
6600 University Ave. Windsor Heights, IA
Licensed Realtor in Iowa
(515) 271-7728
1 vote Thank Flag Link Mon Mar 19, 2012
Great Information! Thank you Josh!
Flag Mon Mar 19, 2012
First off check with your bank to see if you have that option available to you so you don't get a do on sale notice after the fact. If you can sell on a contract get enogh down payment to cover 3 months missed paymants plus about $2,200 in legal fees should the buyer quit paying and refuse to move out. Then what ever damage that was done will be needed to be sonsidered when you are looking at contract terms also!
0 votes Thank Flag Link Mon Mar 19, 2012
Thank you for the information Steve!
Flag Mon Mar 19, 2012
Cinegg, it consists of whatever the print in the contract states. Without more information it will be difficult for useful information to be provided, other than you MAY be giving another person exclusive rights to market or purchase your home for a defined period of time for a price to which you have agreed. You would be well advised to reach out and touch a local professional to review this with you.

Best of success in selling your townhouse.
0 votes Thank Flag Link Mon Mar 19, 2012
It depends what type of contract you are looking for? A contract for deed? Land contract? or to list it for sale? if you have a current mortgage on it it needs to be paid off before you can transfer ownership in most cases. if you want to add some more info please come back and post it. Finding a listing agent experienced in what you want to do will be crucical.
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0 votes Thank Flag Link Mon Mar 19, 2012
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