Use Seller Financing To Sell Your Property Fast!

When you’re trying to sell your home, and you aren’t getting any offers, most real estate agents will quickly suggest that you reduce the sales price to attract attention. How many times have you seen “Price Reduced” or “New Price” in listings for homes?

Owner financing can help you sell your home fast by increasing potential buyers and shortening marketing times.

Rather than reducing the price and potentially training buyers to wait longer (to wait and see if you do it again), you might consider offering to sell you home using owner, or seller financing to sell your home quickly.

Getting a mortgage in today’s real estate market can be a large obstacle to home ownership. Rarely do buyers have the full purchase price of a home sitting in cash in their bank account. As we emerge from the COVID-19 pandemic, it can still be difficult to obtain a loan as lenders only consider the safest lenders (those with jobs) to finance.

What option does that leave for the rest of potential home owners looking for a house to call their own?

Addressing these financing challenges by offering owner financing can differentiate your listing and help to sell your home fast. Offering owner financing allows sellers to  reduce days on market and get the most money while providing the buyer an economical alternative to obtaining a bank loan.

Here’s how it works: The buyer makes a down payment to the seller, and the seller accepts payments over time from the buyer. Essentially, the seller takes the place of the bank and collects interest (at an agreed upon rate) on the money they’ve financed to the buyer of their home.

Traditionally, mortgages last from 20 to 30 years, which is a long time for the seller to wait to get their money. Rather than wait collect payments over 20 to 30 years, most sellers will include a balloon payment provision that requires the buyer to refinance and payoff the seller in 3 to 5 years. In addition to structuring the note with a balloon payment, the seller can also sell all or part of the payments to a note investor for cash now. Once they’ve sold the note, the note seller (who originally sold the house) gets cash and the note investor begins receiving those payments.

Owner financing increases in popularity when interest rates are very high and home buyers have trouble qualifying for higher monthly payments. We expect that seller financing will again become more popular as lending standards increase during this potential post-COVID recession.

When considering seller financing to sell your home fast, simply add the words “Owner Will Finance” to the advertising and watch the inquiries increase!