There are several options to consider when selling your home. You can choose to use an agent or save some fees by using alternative options. When selecting alternative ways to sell your home, make sure you understand all your options; especially owner financing.
If you’re thinking about selling your house and you’re wondering what your options are, you should consider something called “seller financing” (also called “owner financing”). Owner financing is not as popular but extremely effective way to sell your house. And maybe you’re wondering, is owner financing a good idea for the seller in Atlanta?
If that’s the case, then you will enjoy this blog post as we dive into selling a home through owner financing. We will discuss how owner financing works, and If it is even worth the thought.
Here’s How Owner Financing Works
In a normal home-selling transaction, the buyer (who doesn’t have ALL the money for a house) goes to a lender (such as a bank) and pays a down payment, and then makes regular monthly mortgage payments until the borrowed amount is paid in full.
This is the way most people are familiar with buying and selling. But there’s another way to sell your house that you might not be aware of, and it involves owner financing.
With owner financing, everything is similar except this 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. Then the ownership of the house transfers to the buyer.
Advantages of Owner Financing For The Home Buyer
There are several advantages for the home buyer that would make them want to select the owner financing option. First and foremost, home buyers can negotiate better terms from lower interest rates to even zero down payments. Additionally, depending on how motivated the homeowner is to sell, zero-interest options may also be considered. This all sounds great for the buyer, but what would motivate a home seller to want to offer owner financing? Is owner financing a good idea for the seller?
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Atlanta
Many sellers do find owner financing to be a great idea.
- They like that they have a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
- They like that they get monthly cash flow from financing payments
- They like that they still own the house and are protected, should the seller stop paying
- They like that there is no property management
The benefits of not being a landlord but still making a monthly profit is a big plus for sellers. Since the buyer is financing the property, they are considered homeowners. This means no maintenance calls whatsoever. The new owners are responsible for making all repairs and maintenance that the property needs.
What’s not to love? You get ongoing cash flow and protection, and you can still sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental property, owner financing might be a great option for you.
If you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all your options, take a closer look at owner financing. It definitely would not hurt to add an extra option to help you sell your Atlanta house fast with owner financing.