Owner Financing Available! You may have seen this advertisement before but not exactly sure what it means. How it works is that while you still hold ownership, you can sell your property through owner financing and gain a great deal of profit on your investment. There is commonly a time limit on the loan to allow the buyers time to straighten out their credit issues over a two or three-year period. Should your buyer default, they would have to relinquish their rights to the home. Sellers can make several creative financing arrangements to suit the needs of the buyers, as well as your own. We strongly advise you to seek legal counsel before finalizing the transaction to ensure that the contract protects both yourself and the buyer.
Occasionally, you may find yourself financing the entire loan for some buyers. Other times, the buyers may qualify for a conventional mortgage but still fall short of the required downpayment to get into your property. In this latter case, you could finance only a portion of the transaction. To learn more about providing this opportunity to buyers, we will discuss five benefits of using owner financing to sell your house in Portland.
Non-Negotiable Price
One of the benefits of using owner financing to sell your house in Portland is that you are sure to get your asking price as if you set it in stone. You hold the advantage. The borrowers are willing to pay extra for the opportunity to enjoy the benefits that homeownership brings. Suppose housing prices drop, you would benefit from selling at a profit and gain the interest earned during the life of the loan. On the other hand, if housing prices rise, the buyer may realize an increase in equity when they refinance the property.
Current Cash Flow
The monthly payments towards interest on the loan will provide additional cash to your regular income, which is an attractive advantage of using owner financing to sell your house in Portland. In fact, the return on your investment is typically higher than with most fixed-income investments. Since the downpayment is negotiable, you would also receive an extra cash boost at closing. You can even negotiate periodic payments to help the buyers meet your demand for the downpayment of up to 20 percent or more over time.
Quick Closing
Another benefit of using owner financing to sell your house in Portland is that you can skip all of the red tape associated with traditional mortgages. This accelerated process means that your home will sell and close fast, which is also a plus to buyers who are excited to make a speedy move from renting to homeownership. The ability to close in 30 days or less will indeed make your home stands out among many to a buyer with an urgent need to move.
Buyer Pool
By offering seller financing, you undoubtedly expand your market to a whole new level . Having a wider pool of potential buyers for your property is an excellent reason for using owner financing tool to sell your home in Portland. When first-time homebuyers enter the market, it is not surprising that many may find themselves with less than perfect credit. This status prevents them from financing a new home through conventional lenders as they are unable to meet the stringent qualifications for loan approval. This underserved sector of potential homebuyers is where you can step in as a home seller and offer a mutually beneficial solution to you and the buyer.
SCAL Real Estate LLC fully understands the benefits of using owner financing to sell your house in Portland. If you would like to learn more, SCAL Real Estate LLC is happy to answer any questions or concerns you may have, with absolutely no obligation. Call SCAL Real Estate LLC at (971) 238-2255 or send us a message today!