Seller financing can be a great way to get a house sold without slashing the price. By recognizing the millions of people who can’t get traditional financing as potential buyers, resourceful property sellers (and their real estate agents) can minimize their time investment in getting a property sold. Even better, sellers who offer financing can usually get a higher asking price for their property, even in the slowest markets. Clearly this is a win-win situation.
Most property owners do not understand seller financing and how it works, and therefore they do not offer it to prospective buyers when they go to sell their property. By applying this very important concept, sellers can create three distinct advantages. The three advantages to seller financing are more buyers, more money, and long term profit. Let’s take a closer look at seller financing and the advantages to the seller.
Benefit #1 is MORE BUYERS. In a slow economy like the one we are in now, it is very difficult for buyers to get qualified through conventional financing. The market is full of similar type of houses that sit on the market. When a seller willingly advertises , “Owner Will Carry” or OWC, more buyers will automatically be attracted to your house. This gives buyers a better opportunity to qualify to by your house, while not counting strictly on the bank to provide financing.
Benefit #2 to the seller who offers seller financing is MORE MONEY. Sellers who offer their own financing on a property are less likely to have to drop the price to close the deal. Buyers will pay more for the property because they know they are getting built in value by having the opportunity to finance a home that they would otherwise not qualify for with traditional bank financing.
Benefit #3 to the seller is LONG TERM PROFITS. By creating a note for the buyer the seller is acting as the bank and collects interest on the monthly payments from the buyer. Sometimes the payments may be interest only payments. The seller is able to collect these interest payments over time while maintaining the original loan balance until the property is refinanced and the balance is payed off. Seller financing is a win win situation fro the buyer and the seller.
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