Is owner financing a good idea for the seller in Chesapeake? What is this, you may ask? Owner-financing (or also called “seller financing”) is a great way to sell a home if you are not in a rush and if you want to ensure income from the property for years to come. Read below to understand more about this method and if it can be beneficial to you, if you plan to sell your house for cash buying company, like Coastal Edge Homebuyers. With this method you completely bypass the real estate agents and they commissions too.
Here’s How The Owner Financing Method Works
In a normal scenario the potential house buyer goes to a bank and asks for pre-approval for a certain amount of money to buy a house. Then the buyer goes out and finds a house they want to buy, after witch they get a loan from the bank and then they start paying it off through
mortgage payments until the house is paid off. The seller of the house has to work with the buyer’s real estate agent and wait for all the documents to be approved by the bank and then get the deal done. And that is a lot of paperwork. Most people are familiar with this method. But there’s another way to sell your house that you might not be aware of, and it involves owner financing.
If you sell with owner-financing, the buyer does not go to the bank, because YOU become the bank and they are starting to pay you mortgage payments until the house is paid off. Also, you and the buyer work directly, no real estate agents involved. So, how do you find such a buyer? That would be a company like ours, who are familiar with this method and know how to handle all the paperwork. Basically, you agree with the buyer on the total price and the monthly payment amount and then we get the information over to an attorney’s office and they handle all. It’s actually a pretty quick process, much less paperwork and time vs. when your buyer has to get a loan from a bank. And we know you may be asking, would I be fully protected? Yes, you are. There are mechanisms that can be put in place against a situation when the buyer cannot make payments, so you will take back possession of the house.
Many Sellers Are Probably Wondering, Is Owner Financing A Good Idea For The Seller In Chesapeake
Yes, it is actually a great idea to sell your house this way, in some cases. Here is why:
- You actually have a larger pool of buyers, to include those who are not able to get traditional financing. Let us remind you again – you can take possession if anything happens with the buyer and they cannot make payments, just like the banks do.
- Oh, here is the great part – just like a bank, you get to receive the coveted monthly cash flow from the property. It’s like you are renting your house, but you NEVER have to make any repairs. How great is that! No need to hire a property management company!
So, If you want to sell your house but you don’t need a lump sum of cash right now and you want to get a steady monthly cash flow, owner financing is the best way to sell your house!
There is one other condition you need to be aware of. You can sell your house with this owner financing only if it’s paid off (you don’t owe any mortgage). If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.