There is a drastic change in the economy that we have seen in recent years and many homeowners are discovering that there are many ways to sell their house. These options were not available before. You’re no longer stuck to selling through an agent. You have a variety of options! You can sell on your own or take advantage of seller financing. If want to know how to sell a house by owner financing in , read this blog post. We will tackle it and give you a step by step process…
Step 1. Determine whether you own the house outright or if still have a mortgage
Some states allow you to offer owner financing even if you have a mortgage, some don’t. So, you’re first step should be to determine if you still have a mortgage or not.
Step 2. Talk to an attorney and get help in crafting an agreement
You are essentially acting like a bank if you want to do seller financing. The buyer will give a down payment and then they will do regular monthly payments until the house is completely paid off – the title would be transferred to their name. Make sure to speak with a real estate lawyer to make sure that you are completely protected and you are abiding all local, federal, and state laws! (Need a good real estate attorney, call us so that we can make an introduction.)
Step 3. Market your house online and offline
You are ready to advertise that you have a house for sale once your paperwork is in place. Make sure that people are aware that you offer seller financing. There is no limit to how much marketing you should do – the more, the better!
Step 4. Work with potential buyers
Once your marketing strategies increase the number of prospective buyers, ensure that you will work with them to show them through your house. When someone makes an offer on your property, negotiate the terms and price with them, and find the middle ground that will ensure a win/win situation for both parties. When you and the buyer reach an agreement, sign the papers!
Step 5. Get the down payment and provide them the keys
The moment you agree on a price and once you have signed the papers, collect the down payment and hand them over the keys. In most cases, you will continue to own the house and collect fees until the house is completely paid off, then ownership transfers to the buyer.