If you’re thinking about selling your home and you’re wondering what your options are, perhaps you’re exploring something called “seller financing” (also called “owner financing”). Owner financing is a little-known but very effective way to sell your house. And maybe you’re wondering, is owner financing a good idea for the seller in Boston? That’s a great question and we’ll talk about it in this blog post…
Here’s How Owner Financing Works
In a normal house-selling transaction, the buyer (who doesn’t have ALL of the money for a real estate property) goes to a lender (such as a bank) and they pay a down payment and then make regular monthly mortgage payments until the borrowed amount is paid in full.
This is the way most people are familiar with buying and selling. But there’s another way to sell your home that you might not be aware of, and it involves owner financing.
With owner financing, everything is similar except this one thing – the seller of the property acts like the bank: the buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the property is paid in full. Then the ownership of the property transfers to the buyer.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Boston
Many sellers do find owner financing to be a great idea.
- They find it appealing that they have a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
- Its attracting to them that they get monthly cash flow from financing payments
- They like the fact that they still own the house and are protected, should the seller stop paying
- They like that there is no property management
What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your home. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental properties, owner financing might be a great option for you.
If you’d prefer to spread out payments or to have more buyers trying to buy your home, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.
With that said, owner financing is not for everyone. If you want to talk to one of our team about how owner financing might work for you, and what some of your other options are, call our team right now at (508) 857-9990 or click here to fill out the form and we’ll get back to you ASAP