You are here: DIME Home > Investing > How To Sell Your House Faster With Owner Financing

How To Sell Your House Faster With Owner Financing

The real estate market today is having more and more properties for sale, and fewer and fewer buyers for those properties. Cosequently, the prices of houses keep going down every month.

Author: Simon Macharia
Date: Aug 29, 2011 - 12:04:00 PM

Printer friendly page

The real estate market today is having more and more properties for sale, and fewer and fewer buyers for those properties.   This has caused the house prices to keep going down every month.

As a result most real estate investors find that they can no longer sell their properties as easily as they used to.
Likewise, if you are looking to sell your house even if you are not a real estate investor, you find yourself stuck with properties that generate little or no interest from buyers.

 In this article, we look at how seller financing can generate interest from buyers resulting to a quick sale even at a higher price.

What is seller financing?
 In owner financing, the seller agrees to carry part or whole of the financing for his property.   The seller may own the property free and clear, or may still have an outstanding mortgage on it.

 Whatever the case, I would advise you to seek help on how to structure and close your owner financed deals.  Be sure to talk toy our real estate attorney and CPA.

Once the seller accepts to carry a mortgage on the property, the buyer usually pays a down payment.  They then  start getting payments from the buyer every month.

 In order to protect themselves, some sellers require the buyer to make their payments through an escrow company such as a bank. They require the buyer to put a quit claim deed with the escrow company with instructions that the escrow office may file it if the buyer defaults in making their payments.

This way, the property reverts back to the original owner if buyer defaults on the payments.   In such a case the buyer loses the payments made on the property.   The buyer therefore has a powerful incentive to continue making payments as agreed.

 In owner financing, there are no points or closing costs, meaning the buyer could end up saving thousands of dollars.  Since both parties are more open to negotiation, they both have an advantage.

Why seller financing?
 In the past, just staging your property was enough to bring a quick sale. Not any more.  Why should a buyer choose your property when there are numerous other properties in the neighborhood  are selling for a lower price?

 A potential buyer is first attracted by the terms of the sale before they come to take a look. seller financing attracts a lot of attention for your properties.

With the banks tightening their lending procedures, most people can no longer qualify for a conventional mortgage.   Most people's credit has also been bruised.  These buyers can only own properties through owner financing.

 As a seller, using owner financing generated lots of interest for you resulting to quick sale or even selling at a higher price.

The best price of the property is of course estimated from recent sales of comparable properties in the area.

However, you must be careful which properties you use as comparable sales.   Properties that have been sold with seller financing carry a higher price than others sold in the conventional way.  Therefore, its price may not reflect the true value of similar properties.

 At the end of the day with owner financing, you will sell your house faster or even at a higher price.

Ultimately, with so many properties sitting on the market, real estate investors who adapt to the changing trends are able to weather the storm and continue making profits in real estate.   seller financing allows them sell their properties faster where others cannot.

Simon Macharia invests in real estate in Dallas Texas. He  has seen a  lot of creative techniques for buying and selling houses and uses an automated  real estate investor website  to run his business.  These websites attract leads through effective  search  engine optimization (SEO) pre-screen and pre-negotiate with these leads and reduce the daily workload enabling him to do more deals using less time, money and effort.

View all articles by Simon Macharia

Link to this article:

Code to copy:

<a href="http://www.dime-co.com/investing/How-To-Sell-Your-House-Faster-With-Owner-Financing.shtml">How To Sell Your House Faster With Owner Financing</a>

---

Search for articles: Advanced Search

Recommended Associates

Latest Articles in All Categories

Putting Up a Small Commercial Printing Business

So You Might Be Unemployed And Desire To Become A San Francisco Real Estate Investor Now

Meditation and Mindfulness: Dealing With Emotion

CPA Websites: Five Essential Ideas for Composing Convincing Articles

Set Goals In Order to Come Up With Your Action Plan

Is the Air in Your Home Safe to Breathe?

Coarse Fishing Tackle Review: The JW Young 13ft Trotter Rod

Section 1031 Exchanges For San Diego Real Estate Investors

Phoenix Real Estate Investing For Highest Possible Earnings

Legendary are the Volk Racing TE37 Wheels

Developing the Next Generation Wall Station (ChaseDesk™) for Healthcare - A Case Study

What are step down transformers?

Introducing Sharehype, the Revolutionary Tool for Online Marketers

Rewards To Shopping For Austin Real Estate On The Web

Hydroponics for Beginners

Do you write?

Would you like submit your articles and have them approved on a priority status? Find out more about how you can become a Priority author for pennies a day! Click here.

News Feed

Dime-co.com Home

Business (9328)

Computers & The Internet (5740)

Entertainment (1348)

Family (958)

Finance (1963)

Health (4246)

Home and Living (6670)

Marketing (6113)

Shopping & Product Reviews (2624)

Sports (694)

Travel and Vacations (1689)

Video Articles (1)

Editors Pick (1)