If you’re thinking about selling your home and are unsure of your options, you may want to consider “seller financing” (also called “owner financing”). Owner financing is a little-known but very effective way to sell your house. And maybe you’re wondering, is owner financing a good idea for the seller in Raleigh? That’s a great question and we’ll talk about it in this blog post…
Here’s How Owner Financing Works
In a normal home-selling transaction, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and makes a down payment, followed by regular monthly mortgage payments until the loan is paid in full.
This is how the majority of people are accustomed to buying and selling. However, there is another way of selling a home that you may be unaware of, and it involves owner financing.
Everything is similar with owner financing except for one thing – the seller of the house acts like the bank, the buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the house is paid in full. The buyer then acquires ownership of the house.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Raleigh?
Many sellers believe that owner financing is an excellent idea.
- They like that they can sell to a broader range of buyers (including those who may not qualify for traditional bank financing).
- They like the monthly cash flow generated by financing payments.
- They like that they retain ownership of the property and are protected if the seller defaults on payments.
- They like the absence of property management.
What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether you’re selling your primary residence or you’re a landlord looking to sell some of your rental property, owner financing may be a great option for you.
If you’d prefer to spread out payments or to have more buyers interested in purchasing your home, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, consider owner financing.