There are several ways of selling your house now because of the changes in the economy. Homeowners have now discovered that they no longer have to sell through an agent. You can now sell your own house through owner financing. If you are new to this you would probably have questions such as: Is owner financing a good idea for the seller? How much do you have to put down for seller financing? How do you structure a seller financing deal? How do you negotiate owner financing? To better understand how the process goes you will need some owner financing tips! If you’re thinking of selling your house using owner financing, make sure you read this blog post to learn the 6 owner financing tips for sellers in Cincinnati or Northern Kentucky…
There are many ways to sell your house. You could list it on the market and see what sellers will pay. You could work with a real estate buying company (like what we do here at We Buy NKY Houses) and get a fair all-cash offer, or you can consider owner financing and “be the bank” to sell your house to a buyer and collect payments over time.
Owner financing is a valuable but under-used strategy to sell your house. It’s where you offer terms to the buyer to pay you regular payments (just like a mortgage). Here are 6 owner financing tips for sellers in Northern Kentucky…
Owner Financing Tip #1: Don’t Focus Only On Price
Price is just one component. Of course, you’ll want to find a price that is fair for both of you but there are other considerations as well (which could benefit you more than the asking price).
Owner Financing Tip #2: Timeline
Think about the timeline you want to be paid in. Banks might offer 5, 10, 15, 20, and 25-year mortgages. Do you want to accept payments over that period of time? Your buyer will want to find a timeline that works for them, too: they might not want to be paying you 25 years down the road!
Owner Financing Tip #3: Terms
The terms of the deal are one of the most important yet most overlooked parts of the deal. The terms might include things like how much down payment you want if there’s an early repayment penalty or a late payment penalty, and most important – how much interest you charge.
Owner financing is favorable for buyers who are unable to apply for a mortgage loan. This allows buyers to get home faster despite not being able to get bank financing. Buyers can also avoid a big amount for a downpayment required by a bank. In owner financing, the seller and buyer find different terms that they can agree whereas not as rigorous as with a bank.
Owner Financing Tip #4: Protect Yourself
One important owner financing tips is that even if you enter into an agreement with someone who is completely trustworthy, things could still go wrong – so make sure you protect yourself. For example, make sure you have insurance and the other person does as well for the various situations that could occur. And consider including a clause that retains the ownership of the house in your name until the house is fully paid.
Owner Financing Tip #5: Build Contingencies
Most of your owner financing agreement will be built around the “ideal plan” – of what would happen if everything goes perfectly. But sometimes things happen outside of our control, so building contingencies allow you to make better decisions if the unexpected happens. For example, what if the buyer no longer wants the house, or can longer pay, or wants to pay early, or wants to use the house in a different way than expected? Or what if your circumstances change and you no longer want to sell or you need to sell even faster? Agree to the contingencies with your buyer ahead of time and the arrangement will be so much smoother.
Owner Financing Tip #6: Get An Attorney
No matter how you ultimately structure your owner financing deal, make sure you work closely with an attorney who can help you. A poorly worded agreement could end up hurting you; an attorney can help.
Are you thinking about selling your house?
If you’re thinking of selling and are exploring your options, consider selling directly to us. If you wish to learn more about owner financing tips, and If you don’t want to go through the hassle and headache of selling to the market then we might be able to help. Call our team at (859) 412-1940 so that we can give you a fair all-cash offer on your house.
When you call our hotline, you’ll be connected with financial experts who will listen to the specifics of your situation before making recommendations and answering any questions you have regarding owner financing tips!.