If you’re thinking about selling your house and you’re wondering what your options are, perhaps you’re exploring something called “seller financing” (also called “owner financing”). Owner financing is a little-known but very effective way to sell your house. And maybe you’re wondering, is owner financing a good idea for the seller in Reno and the surrounding areas? That’s a great question and we’ll talk about it in this blog post…
Here’s How Owner Financing Works
In a normal home-selling transaction, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and they pay a down payment and then make regular monthly mortgage payments until the borrowed amount is paid in full.
This is the way most people are familiar with buying and selling. But there’s another way to sell your house that you might not be aware of, and it involves owner financing.
When you sell your property owner financing, everything is similar except this one thing – you, the seller of the home acts like the bank: the buyer pays a down payment to you and then makes regular payments (just like mortgage payments) until the house is paid in full. Then the ownership of the house transfers to the buyer.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In The Reno Area
When made aware of or educated about owner financing, many sellers do find it to be a great idea and wish they would have known about it sooner.
- They like that they have a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
- They like that they get monthly cash flow or monthly checks in their mailbox from financing payments
- They like that they still own the house and are protected, should the seller stop paying
- They like that they don’t have to worry about tenants or property managers
What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental property, owner financing might be a great option for you.
If you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be the way to go. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.