There are many benefits of owner financing for homeowners in Beaumont Texas! Learn more about the perks of using a Owner Finance to sell your house in our latest post!
Owner Finance contracts are not standard boilerplate agreements. There are many aspects of the deal that can be modified to better suit a buyer or a seller. The terms of the agreement, down payment, and responsibilities of both the buyer and seller can all vary from contract to contract. When the agreement is structured correctly, a home seller has the potential to come out ahead when all is said and done.
Cash Upfront
In a owner finance there is always a down payment. It usually ranges from 5 to 10%. Now sometime an owner may want to have a bigger down payment depending on their risk. A down payment is to insure the buyer has a vested interest in the property and that the seller has something to ensure the buy is reliable and serious. This money does go to the purchase price of the house. so as a buyer it is better to have a bigger down payment to lower your amount borrowed.
Guaranteed Income
When you use owner financing agreement to sell your house you will help ensure that you are bringing in an income each month. Your buyer isn’t going to risk defaulting on their agreement, so you can almost guarantee your money will be received on time every month. Having extra income can mean huge changes for you and your family. It can be like having a second job, without having to do all of the extra work. When owner financing comes into play buyers will line up at the chance to buy a home of there very own.
A Larger Pool Of Buyers
Offering owner financing to help sell your house in the Beaumont area will bring in a whole new pool of buyers. People who aren’t able to qualify or afford a down payment on a traditional mortgage will be able to come to you. Of course, you will need to run background and credit checks so you don’t end up in an agreement with the wrong person. But by offering owner financing for your property in Beaumont, you will be able to find many more potential buyers for your house. You will also be able to help someone who has a dream of home ownership, but who isn’t quite ready to do it all on their own.
Get Your Asking Price
Buyers are usually willing to pay your asking price in exchange for the opportunity to purchase your home. Your price should be reasonable and in-line with what other properties are that are selling in the area. If you don’t mind collecting a payment, instead of the total profit from the home right away, you’ll likely be able to collect your asking price, without having to lose any money on the sale. You will have the upper hand in negotiations as your buyers aren’t going to want to have their offer be rejected. Plus over time you can double the money you would have received in a straight up sell. If you sold a $200,000 house at 8% for 30 year you will have made $528,310 by the end of the 30 years. NOT BAD!
A Fast Sale
By opening the door to new buyers, you’ll likely encounter many people who will jump at the chance to buy. Typically, you will be able to find a competent buyer right away. A traditional sale could have you waiting for months until a suitable buyer is found. By signing a owner finance agreement right away with a potential buyer, will immediately limit your liability and will help you end a good amount of ownership costs that you had previously been facing.
Freedom From Expenses
Once you have a prospective buyer in place, typically repairs and maintenance expenses will fall on their shoulders. You do have to make sure the house is in good condition first. By eliminating these expenses from your budget each month you will be able to save up even more money toward the purchase of a new Beaumont investment property.
There is nothing that says you need to hold onto a house forever. The traditional methods of selling don’t always attract the right buyers. Offering owner financing on the sale of your property can quickly turn the tables, helping you find a buyer almost immediately.