Preferred Real Estate

Seller financing can be a great way to get a house sold without slashing the price. By recognizing the millions of people who can’t get traditional financing as potential buyers, resourceful property sellers (and their real estate agents) can minimize their time investment in getting a property sold. Even better, sellers who offer financing can usually get a higher asking price for their property, even in the slowest markets. Clearly this is a win-win situation.

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.

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.

Properties sell for a higher asking price when the seller offers a carry back or a note to the buyer. Buyers are often aware that the only way they will be able to acquire the property is from seller financing because often times they have already been turned down by the bank. The buyer is face with buying the house at a higher price or not buying the house at all. For this reason the seller’s second advantage is 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.