Many people who put their homes on the market do so with the intention of selling it in the traditional way. You might have always assumed that the buyer would take out a loan from the bank to pay for the purchase, for example, or you might have thought that they would pay in cash. Offering owner financing might have never crossed your mind, and it might be something that you are a bit hesitant about. Although deciding to sell your home with owner financing is not something that you should do without putting some serious thought into the decision, it does have its advantages. Some of the key advantages that you might be able to enjoy by selling your home this way are listed here.
1. Sell Your Home More Quickly
You may be ready to sell your home as soon as you can. After all, you are probably ready to move into your new home so that you can move on with your life. You might also be concerned about paying two mortgage payments every month or covering the other costs, such as paying property taxes on a home that you are not living in.
Some people are able to sell their home in the traditional way very quickly. This could be the case for you, too. If the market isn’t doing very well in your area right now, though, or if your home has already been on the market for a while, then you might have some concerns about how long it’s going to take for you to find a buyer.
If you are willing to finance the purchase for the person who buys your home, though, you may find that your home will sell a whole lot faster. This comes with obvious benefits.
2. Make More Money
You can actually make more money on your home sale in a couple of ways if you opt for owner financing. For one thing, you may find that buyers are willing to pay a slightly higher price for the home if you offer owner financing. Although you will obviously not want to be unreasonable when pricing your home, this could be a way to get what you want for your home.
Additionally, you can make more money off of selling your home with owner financing by charging interest. The buyer would have to pay interest when buying the home in a traditional way. Instead of having that money go to a bank, you can make that money yourself with owner financing. Plus, those who don’t have the best of credit might be willing to pay an even higher interest rate, which is even more money in your pocket.
3. Help Someone Else Out
For many people nowadays, it is difficult or impossible to take out a traditional mortgage. Even those who work hard and are responsible overall might have trouble getting approved for a loan so that they can purchase their own home. As you can probably imagine, this can be pretty frustrating for those who really want to become homeowners but who just are not able to.
If you are sympathetic to this type of situation, such as if you have found yourself in this situation in the past, then you might be wondering what you can do to help. Offering someone a chance to buy a home with owner financing can be a good way to help a family buy a home when they might not be able to do so otherwise.
Of course, you do not have to choose to take the owner financing route when selling your home. However, you might find that it’s worthwhile to do so. Do a little bit of research and think about the pros and cons of selling your home in this way, and you may find that it’s actually a good option for you and your family.
