Seller Financing - Don’t Sell Your Property Without It!

Here’s How to Get the Most Money for Your Property

For most people, the prospect of selling their home can be positively daunting. First, there are usually plenty of things to do just to get it ready for the market. Besides the traditional clean-up, paint-up, fix-up chores that invariably wind up costing more than you planned, there’s always the overriding concerns about how much the market will bear and how much will you eventually wind up selling it for.

Will you get your asking price or will you have to drop your price to make the deal?

After all, your home is a major investment, no doubt a rather large one, so when it comes to selling it, you want to get your highest possible return. Yet in spite of every one’s desire to get the top dollar for their property, most people are extremely unsure as to how to go about getting it.

However, some savvy sellers have long known a little financial technique that has helped them to get top dollar for the property. In fact, on some rare occasions, they’ve even sold their properties for more than they were worth using this powerful financing tool.

And while that may be the exception rather than the rule, you can certainly use this technique to get the most money possible when you sell your property.

Seller financing, or owner take-back financing, has proven to be a surefire technique for closing deals. And while most people don’t think about when it comes to sell a property, they really should consider using it.

According the Federal Reserve, there are currently over 100 Billion dollars of Seller financing (owner take-back) loans in existence. By any standard, that’s a lot of money. But most importantly, it’s also a very clear indication that more people are starting to use seller financing techniques because it offers many financial benefits to both sellers and buyers.

Basically, seller financing is a relatively simple concept. A seller-financed loan is created when a property is sold and the seller performs like a lender by assisting in financing all or part of the total transaction.

In effect, the seller is actually lending the buyer a certain amount of money toward the purchase price, while a traditional mortgage company usually funds the balance of the purchase price. A seller-financed loan is secured with the property. The loan then becomes the primary mortgage and is fully secured by the property.

In most seller financing transactions, the buyer repays the seller, with interest, in accordance to mutually agreed terms over a period of time. Usually, the terms call for the buyer to send the payments, consisting of principal and interest, on a monthly basis. This is advantageous because it creates a steady monthly cash flow for the note holder.

And if the note holder decides to cash out, he or she can always sell the note for a lump sum cash payment.

Regardless of market conditions, seller financing makes sound financial sense. It provides both buyer and seller with flexible financing options, makes the property easier to sell at higher price and shortens the sales cycle. It has the added advantage of being an excellent investment that generates a steady cash flow and high return.

And of course, if you ever need immediate cash, you can always sell the note, through our company.

If you’re planning to sell a property, then consider the many benefits of seller financing give our office a call, toll free, at 1-800-349-6119... we can help.