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How To Sell House Without A Realtor And Get Cash Back With Owner Financing

Updated on January 26, 2014

Sell Your Home Yourself Without A Realtor

The main reason people try to sell their house without a Realtor is to save money on commission and other fees. I personally believe you can actually lose a lot of money if you don't know what you’re doing.

It may look as if you saved a commission but if you sold your house for much more with help, you could have lost money. Only those with experienced assistance should go this route to avoid losing in the end.

How to Sell My House without a Realtor

Many are taking the lead when it comes to selling their own home. Selling your most expensive asset is costly so why avoid it when you can get more for the money and time minus the commission from the highest price.

Many have sold but have been confused to say the least from all of the paperwork that they are not used to dealing with, however some are veterans of selling themselves and have a plan in order.

The owner seller financing option enables you to sell your home quicker and without paying a real estate commission, plus buyers know that they can save more in terms of interest with you opposed to using a bank.

What Is Owner Seller Financing?

Owner financing is when you, the seller of the property takes on a note (IOU with interest) to allow the sell of their property to go through when the buyer or you don't prefer to go through a bank.

Of course this is the easy explanation to owner financing when you sell your home yourself. There are various mortgages to consider that you should research first. The most common mortgage is "seller setback".

Using owner financing can save you money in fees and commission, but can also be dangerous to your pockets if you’re not careful.

You can ask a title company that you will be using to give you an estimate on your closing cost. Surprises will come but doing your homework ahead of time will minimize them.

Steps to Home Owner Financing

  1. Find Buyer
  2. Set terms with title company
  3. Close

The most important thing to consider before you sell is that your buyer is credit worthy and is looking for a good deal and not setting you up to take a fall. Some people avoid lending institutions because they are bad risk.

Why Selling Your Mortgage Note (Income Stream)?

Now that your home is sold and you have a note (income stream) you have some choices if you money in case of an emergency:

  • tuition
  • new home
  • exotic vacation
  • wedding

Many have found themselves in a bind and did not know this was an option. But even banks know that money today is better than money tomorrow.

Preparing Your Home to Sell For Cash

Yes, you can sell your payments. This is a growing trend that many FSBO's haven't heard of but is steadily growing. There are of course some guide lines. The most important guideline is that the person that is making the payments is credit worthy.

Can Anyone Sell Their Mortgage Income Stream?

When selling your mortgage note, always deal with a reputable experienced firm. What you need to know is a financial company will not purchase your note at a discount if the person that is making the payments is not credit worthy. So if you’re in a bind for cash you can get it if your mortgagee is responsible.

Everyone is based on a case by case basis and their cash payment amount will be determined by the a variety of circumstances such as:

  • credit (payer)
  • mortgage type
  • loan to value
  • payment history

Businesses do this all the time with their receivables (invoices of orders from customers/clients that are payable in 30 to 90 days) to keep their business with the finances to expand and grow. But in business this is called factoring.

Home owners are finally learning how to sell their properties like business owners. Being able to get into your next home with cash has been a problem in the past but not anymore.

How Long Does It Take To Receive Your Money?

This process is not a very long one. In most cases you will have to wait 24 hours for a quote and anywhere from 48 hrs to 2 weeks for your cash. This does depend on your situation and you will be kept current on what is going on.

Selling your house without a Realtor and being without substantial resources can leave you in a bigger bind. If you are curious and need a quote you can request a form from a reliable contract buyer you can trust. You can find them online by researching "How to Sell My Mortgage Note" or something similar.


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