Most people think that real estate transactions are done in one manner – get a real estate agent to broker the deal. The reality is there are many ways to buy and sell real estate. Often the alternatives require some additional work on the part of the buyer or seller. Learn the alternative ways to buy and sell Middletown real estate to determine the best ways to buy and sell real estate in Middletown.
For Sale By Owner
For sale by owner, also called FSBO, is a transaction where a property owner chooses to market a property without the help of a real estate professional. The seller can save up to six percent in commissions owed to real estate agents in the transaction if the buyers don’t have realtors either. This is very attractive. The problem is most owners don’t have the resources to market the way a listing agent does. It’s more than the open house. It’s about getting on the Multiple Listing Service and other networks. This doesn’t mean it is impossible. Business smart owners will find networks including real estate investment clubs, call on local real estate agents and list on public sites such as Zillow or Redfin. This helps buyers find them. Sellers must be motivated to do the work and complete the transaction according to state and federal regulations. Selling on your own can be very difficult without a Middletown agent.
Real estate agents call listings that haven’t hit the MLS yet a pocket listing. These are properties that are preparing to hit the market or are being kept off of major market listings for privacy or exclusivity reasons. A celebrity home might not want two thousand gawkers walking through the house who aren’t interested. But even less paparazzi-qualified home can be pocket listings. Sellers may be testing the market to see if they can get a quick sale. If you want to find out about pocket listings, you need to network with well-connected real estate agents who know about these secret listings. Buying a pocket listing eliminates a lot of the frenzy of mass offers flooding in after an open house and give you the advantage as a buyer.
Probate and Estate Deals
Probate courts and estate planning attorneys often have to help families liquidate properties as part of settling a deceased person’s estate. Many properties do make it to the MLS market while others will be sold in private transactions. Networking with probate and estate attorneys and having financing in place to make a quick deal puts an investor at an advantage. The family is already dealing with so many issues, many of which are emotional for their loss, that having a buyer come to the table quickly usually means a good deal is had and a win-win for all. A good agent will be able to help you find the best probate properties in Middletown.
Auctions and Tax Sales
A property can go into an auction for several reasons. It may be in default for the mortgage, property taxes, seized for federal tax monies owed. Auctions are usually held at courthouses or local county conference halls. Occasionally a foreclosure auction may be held at the location. Be prepared with the money to buy the property at auction and understand that these are often sold sight unseen and buyer beware situations. You generally are unable to inspect the property because it is being seized and the people in the property are angry and upset. Most properties are distressed by the time the previous owners leave.
Local counties can place a tax lien is some counties allowing investors to buy the debt instrument. If the property owner doesn’t pay the lien off in the defined time, the lienholder owns the property free and clear for the cost of the tax lien.