If you want to sell a house without lowering the price then seller financing can be the best way to go. Especially with today’s economic conditions there are millions of potential buyers who can’t get traditional financing. A seller (along with their Realtor) can shorten there time investment in converting these buyers by offering a note or carry back. In addition, the seller can in most cases maintain their asking price for the property, even in this tough economy.
Most property owners do not understand seller financing and how it works, and therefore they do not offer it to prospective buyers when they go to sell their property. By applying this very important concept, sellers can create three distinct advantages. The three advantages to seller financing are more buyers, more money, and long term profit. Let’s take a closer look at seller financing and the advantages to the seller.
Benefit #1 is MORE BUYERS. In a slow economy like the one we are in now, it is very difficult for buyers to get qualified through conventional financing. The market is full of similar type of Houses that sit on the market. When a seller willingly advertises , “Owner Will Carry” or OWC, more buyers will automatically be attracted to your house. This gives buyers a better opportunity to qualify to by your house, while not counting strictly on the bank to provide financing.
Properties sell for a higher asking price when the seller offers a carry back or a note to the buyer. Buyers are often aware that the only way they will be able to acquire the property is from seller financing because often times they have already been turned down by the bank. The buyer is face with buying the house at a higher price or not buying the house at all. For this reason the seller’s second advantage is more money.
Additionally, when the property seller finances the buyer, they get to act as “the bank”. That means they could structure the deal to collect interest. Over time, if the seller holds on to their note, this can add up to tens of thousands of dollars in additional income. Advantage #3: LONG TERM PROFIT. It is easy to see how the seller can benefit buy offering seller financing, while providing an opportunity to the buyer that they would not otherwise have.
Tags: eden realestate
