Selling a house without slashing the price can be accomplished with seller financing, even in this rough economy. Millions of potential buyers who cannot get traditional financing are able to get the deal closed when a seller provides them with a note or seller financing. Both the seller and buyer benefit, because this can bring a deal back to life that would otherwise not be completed. In addition the seller can get closer to his asking price when the transaction is facilitated with a seller note.
Most property owners do not understand seller financing and how it works, and therefore they do not offer it to prospective buyers when they go to sell their property. By applying this very important concept, sellers can create three distinct advantages. The three advantages to seller financing are more buyers, more money, and long term profit. Let’s take a closer look at seller financing and the advantages to the seller.
When a seller offers financing on a house and advertises seller financing in the newspaper, more buyers will automatically be interested in seeing the house. Many of the buyers that have been turned down already from the bank or are unable to get bank financing will now become a new prospective buyer just by virtue of the seller carrying a note or a mortgage. The number one benefit to the seller is that there will be more buyers that will have the ability to make an offer on the house.
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.
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