6 Tips to Sell Your House Fast with Owner Financing

If you’re thinking about how to sell your house fast with owner financing, this article will give you some great tips and tricks for making the process easier.

There are many ways to sell your house. You could list it on the market for a more traditional sale. You could work with a “we buy houses company” (like what we do here at Cash Buyers Macomb) for a faster, less hassle sale, or you can consider owner financing and “be the bank” to sell your house to a buyer and collect payments over time. Owner financing can be a valuable strategy to sell your house fast. It’s where you offer terms to the buyer to pay you regular payments (just like a mortgage). Read on to learn some of my best tips about selling your property using owner financing,

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Top 6 Tips to Sell Your House Fast with Owner Financing in Michigan

#1: Don’t Focus Only On Price

Price is just one component of sale. Of course, you’ll want to find a price that is fair for both of you but there are other considerations as well (which could benefit you more than the asking price). When we work with a seller on an owner financed deal, we generally consider three parts – price, downpayment and terms. Typically, we can work out a deal if the seller gets 2/3 on their wants, and we get 1/3 of ours. This process is all about give and take to find a way to make the deal work.

#2: Timeline

Think about the timeline you want to be paid in. Banks might offer 5, 10, 15, 20, and 30-year mortgages. Do you want to accept payments over that period of time? Your buyer will want to find a timeline that works for them, too. The difference is this can literally be anything you want. We commonly look to do a shorter term with a balloon payment. When the balloon payment comes due, we look to move the loan into a traditional bank loan so the seller can get paid out in a year or two.

#3: Terms

The terms of the deal are one of the most important yet most overlooked parts of the deal. The biggest components here would be the monthly payment amount and the interest rate. Again, these can be anything you want them to be. Whether interest only, a fixed number or a more standard amortized payment, the key is learning what each side needs to make sense for them.

#4: Protect Yourself

Even if you enter into an agreement with someone who is completely trustworthy, things could still go wrong. Make sure you protect yourself. For example, make sure you have insurance and the other person does as well for the various situations that could occur. Consider including a clause that retains the ownership of the house in your name until the house is fully paid. The simplest way to approach this is just like a bank would. Everything should be filed appropriately with your local jurisdiction, title companies should be consulted and all contracts should be reviewed by an attorney.

#5: Build Contingencies

Most of your owner financing agreement will be built around the “ideal plan” of what would happen if everything goes perfectly. Sometimes things happen outside of our control, so building contingencies allow you to make better decisions if the unexpected happens. For example, what if the buyer no longer wants the house or can longer pay? What if they want to pay early or want to use the house in a different way than expected? What if your circumstances change and you no longer want to sell or you need to sell even faster? Agree to the contingencies with your buyer ahead of time and the arrangement will be so much smoother. This all goes back to having open communication about each party’s wants and needs. 

#6: Get An Attorney

No matter how you ultimately structure your owner financing deal, make sure you work closely with an attorney who can help you. A poorly worded agreement could end up hurting you. Attorneys take the guess work out of the process. Both sides deserve to be protected and informed.

Wrapping Up – Selling Your House Fast with Owner Financing

If you’re thinking of selling and are exploring your options, consider selling directly to us. Seller financing is a great option if you live in any of the following cities within Macomb County: Roseville, Clinton Township, Sterling Heights, Fraser, Harrison Township, Warren, Macomb, Utica, Saint Clair Shores and more. If you don’t want to go through the hassle and headache of selling to the market then we might be able to help. Call our team at 586-307-4330 or click here now and fill out the form and we’ll give you a fair all-cash offer on your house.

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