Have You Ever Considered Selling Your Home With Owner Financing or Rent To Owning Your Home? Plantation FL Sunrise FL Davie FL

If you want to sell me your home yesterday either call 954 247 1353 or visit SellFloridaHouseNow.com. Many people think the only way for a home buyer to buy a home is for the buyer to get approved for a mortgage, then take out a loan and make payments to a bank for the next 30 years. This is definitely not the only option. Selling a home with seller financing, also known as rent to owning a home is a great strategy for selling a home. If you have fallen for the misconception that a home seller can not hold the financing to a property you are dead wrong, sorry. Sellers can certainly hold the financing on the property. The legalities of how to arrange the agreement do differ from state to state or country to country but it is basically the same. The buyer and seller agree on a purchase price, monthly payment amount and length of term. The agreement is in writing and signed by all involved and may be required to be witnessed by a third party like an attorney or notary. There are some real advantages when a seller can offer a home for sale with seller financing. First they open up their potential customer base to a whole new market. Rather than marketing to people who are currently qualified to get a mortgage, the potential market is now open to people in possible situations that do not allow them to get traditional financing. It isn't that these people are not quality purchasers. They often have short term issues that are preventing them from getting financing. The four most commons reasons people have trouble qualifying for a mortgage are: One: they have short term credit blemishes that could be repaired in a short time frame (normally 12-24 months). Two: They could be self employed. The self employed home buyer normally needs to show at least 2 years worth of tax returns to support their income claim. Three: The applicant could work in a cash business and their income is more difficult to prove. This could be a bartender, waiter or waitress or taxi driver, etc.. All of which most often have the sufficient income to afford a house payment. The forth most common issue for qualifying for a mortgage is the candidate who was recently rehired back into their original industry after a unemployment period that is longer than acceptable to the mortgage industry. With the down turn in the economy in the last few years there are many people that could have been affected. Many people took lower paying jobs that they were over qualified for until they were able to get back to work in their original professional field. The second powerful persuader to sell a home with owner financing is the seller can make more money. There are at least three ways the seller can do this. First the seller can often charge a higher sales price. Home offered for sale with owner financing are often harder to find than homes listed with a realtor with the seller needing to get paid the sales price on the day of settlement. For this opportunity the buyer is more willing to overlook a higher sales price, equating to more profit for the seller. The second way the seller can make more money is in cost saving in selling expenses. Sellers may not need to use a realtor to facilitate the transaction and find the buyer on their own so they would save on the 6-7% commission normally charged by the realtor. There will be specific contracts that should be used to protect the interest of both the buyer and the seller. The transaction should be handled by an attorney or settlement company. The attorney will need to draft specific documents for the situation or if they can find a real estate company that specializes in facilitating these seller financing transactions the legal documents may already be readily available and at a lower cost. The third profit center for the seller is the profit from the monthly payment they collect from the buyer. Just like a traditional mortgage, interest would be charged on the portion of the sales price that is financed. Assuming a $100,000 balance financed at 8% that would be close to $7969 for the seller after the 1st year. For sellers that do not need the proceeds from the sale of their home immediately this can be a profitable opportunity. When people get a lump sum of money the most common areas to put the money is either a checking or savings account at a bank, in a CD or in the stock market. Checking or savings accounts are currently paying.5% which means an extra $500 after one year. CDs are better but locking in a 1 year CD at 1.1% would garner $1100. Putting the money in the stock market actually risks losing money and ending the year with less than you started with. As you can see selling a home with owner financing or rent to own has some real benefits to the seller and to the buyer as well. Written by Chad Eisenhart