Our question to answer today is, “Should I consider seller financing?”
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Thinking of Selling a Home? Get a Home Value Report
Thinking of Selling a Home? Get a Home Value Report
Today’s topic is seller financing: Is it worth considering?
If you’re in a position to finance the sale of your home, it provides a great opportunity for many reasons:
1. Higher Price. Buyers are less likely to negotiate the price when they are getting special financing. You will likely get an offer at or very close to asking price. 2. It will open up your pool of buyers. Many buyers are qualified, but they, for example, might have recently moved and don’t have enough time on the job; they may be going through a divorce; they may need more time to gather funds, or they may be working toward repairing their credit. But if they have enough cash to put down, it will likely create an opportunity to attract buyers you otherwise wouldn’t have been able to—a lot of buyers are specifically looking at seller financing.
1. Higher Price. Buyers are less likely to negotiate the price when they are getting special financing. You will likely get an offer at or very close to asking price. 2. It will open up your pool of buyers. Many buyers are qualified, but they, for example, might have recently moved and don’t have enough time on the job; they may be going through a divorce; they may need more time to gather funds, or they may be working toward repairing their credit. But if they have enough cash to put down, it will likely create an opportunity to attract buyers you otherwise wouldn’t have been able to—a lot of buyers are specifically looking at seller financing.
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When the buyer gets better terms, they’re
less likely to negotiate the price.
less likely to negotiate the price.
3. It will bring a better rate of return. If you were to put the money in the bank, you’d receive a much higher interest rate. You’d receive cash immediately, and you’d be able to stop the cost of carrying the home, like the costs of maintenance, repairs, taxes, HOA fees, and utilities, when the buyer purchased the home through seller-held financing.
4. You’d have a steady monthly income from holding the note. You may want to speak with your CPA to see if there are any additional benefits you could gain, but the clear benefits of seller financing are that you’ll draw in more buyers, net more money, and you’ll actually get a higher price. When the buyer gets better terms, they’re less likely to negotiate the price.
5. Stop the cost to carry. The new buyer immediately starts paying for maintenance, repairs, HOA fees, taxes, utilities, and other surprises once the sale takes place so you don't have to! If you have any questions, call or text today at (239) 248-8000. I’d love to hear from you.
