Do you own a house that you have been wondering how to sell for more money, in its “as-is” condition and a non-traditional way, without listing it with a real estate agent? If you do, you are reading an article that will proffer the best solution! You can achieve this goal by using various techniques. One of these techniques is known as “Seller Financing.”
Seller financing also known as “owner financing” or “owner carry-back” is a great creative technique for selling a property for more money. However, this technique only works, if the seller owns the property free and clear. This means the seller should have zero mortgage liens on the property. Otherwise, the seller can’t use seller financing because there is an existing lien holder on the property.
As a homeowner who needs to sell a house for more money, understanding the potential of using this approach can’t be overemphasized. You can use seller financing by negotiating with the buyer to pay you more money (non-cash payment) in return for your NOT getting paid off in full and upfront for your property. The negotiation may also include you agreeing to sell your property to the buyer for little or no money in a down payment and “as-is” while you carry the balance owed in the form of a seller-finance loan.
Essentially, as the seller, you are acting as the lender (bank) to the buyer. In this case, you transfer the ownership of your property to the buyer and a mortgage lien is placed on the property to safeguard your position and investment.
As an illustration, let’s say that a buyer is offering to buy your house for $100,000 cash. Instead of accepting the $100,000 cash offer, you can negotiate with the buyer to pay you $100,000 PLUS. In return for $100,000 PLUS (non-cash payment), you can agree to become the lender of this $100,000 PLUS to the buyer on certain terms which may include the buyer making:
- Little money (as the buyer’s “skin” in the loan) or no money in the down payment
- An agreed-upon monthly loan payment at a fixed amount
- A prearranged monthly interest payment at a specified rate
- A predetermined period with a loan due date for loan payoff
As a homeowner, ‘seller financing’ is a technique to achieve your selling goal of a higher price, as well as selling as-is, and without listing with a real estate agent who may require that you carry out extensive repairs on your property before it can be listed.
At Kevalla Investments, LLC, our #1 goal is to help homeowners achieve their selling goals. For a real estate investment company that will buy your property as-is, for a higher piece with seller financing without closing costs or commissions, contact us now by calling/texting (240) 449-1770 or filling in this simple form to see if we can help.
This blog is only to enlighten the readers and is not meant to be used for tax, real estate, financial, insurance, legal, or investment advice. Kevalla Investments, LLC encourages you to contact a professional regarding your circumstances. Please confer with your advisor when making financial or legal decisions.