In today’s real estate market, we are seeing more and more properties for sale flooding the market, but fewer and fewer buyers for these properties. The result is that the house prices keep going down every month.
As a result, it has become tougher and tougher for real estate investors to sell their properties.
Even if you are not selling investment properties, you find that you get little to no interest when you try to sell your house.
This article looks at how to generate interest by using owner financing, and probably selling it fast or even for a higher price than you would otherwise sell it.
What is seller financing?
owner financing occurs when the seller accepts to become the bank for part or whole of the value of the property. As the seller, you may own the property free and clear, or you may still have a mortgage on the property.
Whatever the case, I would advise you to seek help on how to structure and close your owner financed deals. Make sure you talk to your CPA and real estate attorney.
The buyer usually pays a down payment once the seller accepts to owner finance the property. The seller then receives monthly payments just like a bank.
Why owner financing?
The days when just staging your property was enough to sell it are long gone. Why should a buyer choose your property when there are numerous other properties in the neighborhood are selling for a lower price?
Before a buyer ever comes to see your house, they will have to be attracted to it by the terms you have set for the sale. 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.
When you are selling your houses, you end up generating a lot of interest, selling faster, or even selling at a higher price by using seller financing.
The best price is estimated from comparable sales in the area.
It is important to be careful which properties you use as comparable sales. Owner financed properties carry a higher price than others. This price may therefore not reflect the true value of similar properties.
At the end of the day with seller financing, you will sell your house faster or even at a higher price.
Real estate investors who adapt to changing market trends end up making profits. owner financing provides a way for them to sell their properties faster even 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 website for real estate investing 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.
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