The Queen Team!

The Queen Team!- Keller Williams Arizona Living Realty

Tuesday, April 13, 2010

Kingman Owner Will Carry Homes For Sale

As of today there are 46 active homes for sale under owner will carry terms in the Kingman Arizona MLS.  Since January 1st there have been 18 sold homes under owner will carry terms.

Owner Will Carry (OWC) definition - A type of financing in which the seller accepts a promissory note as a portion of the purchase price. Also called owner or seller financing.

Owner Will Carry properties are becoming more popular due to the increase in foreclosures we have seen in Kingman Arizona.  Many home owners that have foreclosed on their home can not get approved for a mortgage however would like to purchase a home.  An owner carry home is the perfect option for these buyers.

Down Payment. Typically when you purchase a home under Owner Will Carry terms you will be required to give a down payment.  The down payment is always negotiable between the buyer and the seller until they come to an agreement.  It is very typical for an owner to ask for 20% or more as a down payment on an owner will carry.  However there are a few owners that will take a smaller down payment.  $6,000 - $8,000 down is usually the lowest most sellers will accept as a down payment.  This is because the seller will need to make sure that their out of pocket costs are covered by the down payment amount.  The seller usually pays their own escrow and recording fees as well as the real estate commission and any taxes owed up until closing.  These fees can add up to a few thousand dollars and sometimes they can even take up the full $8,000 down payment.

Interest Rate. Interest rates on seller financing can be negotiated on between the buyer and seller as well.  From my past experience I have noticed that owner carry rates in the Kingman area are typically agreed upon at 2%-3% higher that the average conventional loan rate at the time at the time.  Right now most owner will carry rates are between 6% and 8%.

Term. The length of the term is also negotiated between the buyer and seller.  Very few sellers will agree to carry a note for a full 30 years.  However most sellers will agree to amortize the monthly payment over 30 years with a balloon payment due at a sooner date.  Typically 5 to 10 years is when most sellers would like to be paid in full.  There are some sellers that would like to be paid off sooner and some that are willing to carry longer.  This all depends on what the seller is willing to agree with the buyer.

Many sellers to not advertise the terms that they are wanting on the note for the property but you will find some that do. Many of the sellers are looking for the buyer to submit an offer so that they can negotiate with them on the terms that work for the buyer and the seller.

If you are looking for an owner will carry property (home or land) please feel free to contact me anytime.  I am very familiar with the available owner carry properties and would appreciate the opportunity to help you sell or buy an owner will carry property in Kingman Arizona.

Below is a current list of available owner will carry homes in Kingman Arizona.

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