The recent changes to the economy these past few years have homeowners discovering whole new ways to sell their home. For example, many have done away with selling through a realtor and have opted to sell properties on their own. Another option that has been growing in popularity is selling a house with owner financing.
Owner financing is a kind of private mortgage where you, the owner, acts as the lender and receive the monthly loan payments of the buyer. With this home selling scheme, your listing can sell faster in a slow or poor real estate market. With the right preparation and execution, selling your home through owner financing is possible.
- Know if you outright own your home or if it still has mortgage. There are some states where you are not allowed to do owner financing if you still have mortgage. Some areas, though, are more lenient on this regulation so make sure to clear this out first.
- Determine the value of your property. Pricing your house can be tricky: you have to make sure that it is low enough to attract buyers, but high enough that you get a good income from it. You can contact a reputable real estate agent to help you decide on the best price for your home.
- Consult with a real estate lawyer and get help in creating an agreement. Remember that you are acting like a bank with seller financing. The buyer will give you the down payment of the property, and get the succeeding regular monthly payments until it gets paid off. Also, aside from protecting yourself, you have to make sure that you do not put yourself in legal troubles abide by all federal, local and state laws as well.
- Sell your property both offline and online. After you have done all the paperwork, you can now advertise your listing for sale. Market it anywhere you can. This way, it reaches as much potential buyers as possible. Stage each room of your home and post pictures of them in your ad. Most importantly, do not forget to include that you offer seller financing.
- Work with your potential buyers and tour them through your house. You can also do an open house in Sioux Falls if you want. Negotiate offers and find the middle ground where both of you can agree on. Once you reach an agreement, be ready to sign the necessary papers.
- After agreeing on the price and signing the documents, you can how collect the initial payment and hand over the keys. In most cases, you will still hold ownership of the house until the buyer has completed the monthly payments. Once this happens, the ownership will then be transferred to the buyer.
If you find yourself still having difficult in selling your property through owner financing, ask help from the real estate experts at GL Real Estate Group. Regan Laughlin and her team can offer you great advice or even work with you in getting a good sale. Call or text them at 605-212-8431 now. You can also click here to fill out the contact form.
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