Home Selling Tips: Finance Your Own Property

We recently talked about how buyers can benefit from using seller-based financing. The truth is, it’s often a very smart move for sellers as well. Here are a few reasons that you should seller finance your property.

More money

Arguably, the best part of seller financing for the seller is the extra money. If you choose to send the buyer to a bank for a mortgage, you’ll get the price of the property right away. On the other hand, if you allow them to finance through you, the price will be paid to you over the course of the loan, but it will come with interest, which is often worth almost as much as the loan itself. This means that, even if your property is only worth $60,000, you may be able to get $100,000 out of if, if you’re willing to wait for it.

Flexibility

Seller financing makes the entire process more flexible for both the buyer and the seller. If you finance your own property, you can ask for just about whatever you want. This gives you a lot of extra power in negotiations. You control all aspects of the loan, and can use that to your advantage.

Options

Once you’ve agreed to finance the property yourself, you still have other options available to you. Even years later, you could still sell the loan to an investor. For example, if you were to decide a year after the sale that you needed the cash, you’d probably still be able to sell the note for more than the house was worth.

Looking for more information about seller financing or anything else related to real estate? Contact us.

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