If you want to sell a house without lowering the price then seller financing can be the best way to go. Especially with today’s economic conditions there are millions of potential buyers who can’t get traditional financing. A seller (along with their Realtor) can shorten there time investment in converting these buyers by offering a note or carry back. In addition, the seller can in most cases maintain their asking price for the property, even in this tough economy.
There are many sellers that do not even consider the idea of seller financing because they are not familiar with how it works or they simply have not heard of it before. The seller of a property can benefit from providing their own financing in three distinct ways. These benefits are more buyers, more money, and long term profit. Following is a closer look at these benefits.
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.
Seller financing also brings the property seller another critical advantage . the likelihood of selling for a higher price. Offering to carry back a note will not only greatly increase the number of potential buyers, but also bring a unique demographic of buyers who are willing to pay more for a given property than the general population. Advantage #2: MORE MONEY.
The seller acts just like the bank when offering seller financing or carrying a note for the buyer. The buyer is making interest payments each month which over time can accumulate to hundreds or thousands of dollars to the seller. The longer that the buyer makes payments the more interest payments the seller with accumulate over time. The third advantage to seller financing is long term profits. Seller financing creates a great opportunity for the buyer to get a house while providing great advantages to the seller.