The other day, I was talking with a relative who has been trying for months, unsuccessfully, to sell a house they own. It’s not rented out, not getting shown to buyers, and is costing them money all the while. They had been leasing it for $500 per month. They’ve been trying to sell it for over a year. That means they’ve said no thanks to about $6,000 and feeling frustrated and helpless this whole time. When I suggested owner financing, I was met with howls of dismissal, until I pointed out that it might be the only way they’ll ever get it sold.
Why Seller Financing Makes Sense
A seller might be willing to offer financing for several reasons:
- Make the property stand out and get it sold faster
- Increase the odds of getting full price
- Get enough for a down payment to buy another property
- Cover the monthly expense associated with owning the house
One huge advantage of seller financing is that you can almost always ask for a significantly higher price on the property and people will pay it.
In other words, seller financing doesn’t just benefit buyers who don’t qualify for (or don’t want) traditional financing. It also benefits sellers, especially those who are particularly motivated to sell their homes.
Sell Your Property Fast
Offering seller financing can open many doors to allow you to work with a much wider range of potential buyers. The fact is, a lot of buyers won’t even consider buying your property simply because they don’t have or can’t get the funds needed to purchase it. If you offer seller financing, you’re solving this problem right out of the gate.
The more flexible you can be and the more options you can offer to potential buyers, the faster you will get your property sold. On the other hand, if you’re only holding out for one lump sum, you could find yourself sitting on a property for a lot longer than you need to.