Selling Your Own Home on Your Own - Seller Financing
Seller Financed Mortgage Benefits
Selling or buying property has got to be one of the most important and stressful things a person can do.It is important to find the strategies that is needed for each and every transaction; because they all have different dynamics.
Both parties want to feel like they have come out on top at the end of negotiations with the best terms and benefit financially after the deal. Buyer financing allows negotiations to be personalized and allow real estate deals to move forward after all else has failed.
There are obvious benefits for buyers receiving owner financing from sellers (seller financing), like not having the banks dictate high interest rates and stiff restrictions to qualify for a loan.
Buyers Benefits of Seller Financed Mortgage
1. Easy to negotiate
2. Easy to qualify with or without credit.
3. Available to most with income
4. Unlimited mortgage amount
Private financing exist by using the properties equity for financing for the buyer (carry back). This is when the equity is used to back the loan for the mortgage to the buyer.
Using equity in the home is the easiest way to utilize owner financing. This is also how many wealthy investors finance their deals, with seller’s equity.
There are more benefits I’m sure that some may come up with but it’s about the benefits of the seller’s right now. Why would seller’s owner finance without the safe boundaries of a bank. Banks make sure that the buyer is qualified and sets restrictions and penalties to protect the mortgagee.
Seller Benefits of Seller Financed Mortgage
1. Seller earns more income than most investments on interest portion of payments.
2. Sellers can sell house above market price.
3. The private note can be used as a tool to be sold, borrowed against or as collateral for other investment.
4. Property is sold faster in slow market due to more negotiable terms to entice buyers.
5. Legal note (mortgage) can be soldfor emergency cash when needed, but at a discount.
Before selling your property always do your due diligence. You never want to do business with people you do not trust. Your first instincts are usually the best ones. Getting into disputes can be easy getting out of them a little tougher and more expensive.
A litigation lawyer cost more money aiding you in litigation than helping you avoid it. Working out the problem in the early stages it the best thing you can do to avoid added expenses.
Always try to look at the buyers point of view and give a little to get the deal done. This will not take away from your woman or manhood and can possibly save your thousands of dollars.
Selling with owner financing has it's pro's and con's and it is up to your to do your due diligence before going into any deals. You are a business person and should take it very serious when selling your most expensive asset.
Buyers may know how they can benefit, but when both parties get what they want it is a win win situation. Seller financed mortgage is perfect when it benefits all involved.