Is Owner Financing A Good Idea For The Seller In the Greater Cincinnati Area

If you’re thinking about selling your house and you’re wondering what your options are other than selling your house through an agent in which you can avoid a listing agent’s 3 percent commission. Perhaps you’re exploring something called “seller financing” (also called “owner financing”).  If you want to succeed with this option of selling your house, Then you would need to learn and understand the Pros and Cons to answer the question – ‘Is owner financing a good idea for the seller?’ Owner financing is a little-known yet very effective way to sell your house. But, is owner financing a good idea for the seller in the Greater Cincinnati Area? That’s a great question and we’ll talk about it in this blog post…

Owner Financing A Good Idea For The Seller - Financing

Here’s How Owner Financing Works

In a normal home-selling transaction, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and they pay a down payment and then make regular monthly mortgage payments until the borrowed amount is paid in full.

This is the way most people are familiar with buying and selling. But there’s another way to sell your house that you might not be aware of, and it involves owner financing.

With owner financing, everything is similar except this one thing – the seller of the house acts like the bank: the buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the house is paid in full. Then the ownership of the house transfers to the buyer.

Owner Financing Pros

  • You don’t have to worry about looking for a real estate agent that would require you to pay a 3% commission.
  • You will have control over your listing since you are the one who will decide the price, listing details and marketing strategy of your house.
  • You will have control of your showing schedule that means you can choose the schedule that is convenient for you.
  • You will have a faster way of closing since the buyer can skip the lengthy mortgage process.
  • You can sell the home as-is and you don’t have to worry about renovating or upgrading your house.

Owner Financing Cons

  • You will have a lower sales price since you don’t need to spend for any fix for the house and will be selling it as is that would make it less appealing which means you’ll get a lesser showing.
  • Everything is done by you from listing online, showings, negotiation, and paper works.
  • You may encounter mistakes along the process.

What Sellers Think About Owner Financing

Many sellers do find owner financing to be a great idea.

  • They like that they have a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
  • They like that they get monthly cash flow from financing payments
  • They like that they still own the house and are protected, should the seller stop paying
  • They like that there is no property management

What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental property, owner financing might be a great option for you.

If you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.

With that said, owner financing is not for everyone. If you want to talk to one of our team about how owner financing might work for you, and what some of your other options are, call our team right now at (859) 412-1940 or click here to fill out the form and we’ll get back to you ASAP


If your questions are: Does For Sale By Owner mean owner financing? Who holds the deed in owner financing? What does it mean when it says owner financing? Is owner financing the same as rent to own? Is owner financing a good idea for the seller? Then contact us!

We’re here to help. 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.

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