HOW TO SELL YOUR HOME IN A TOUGH MARKET WITHOUT THE AID OF CONVENTIONAL FINANCING

Getting your Home Sold in a Tough Market  Without the aid of a Lender for Top Dollar.

By JAZ Zydenbos, Keller Williams Realty Elite Partners located in the Sunshine State of Florida.

When the seller provides the buyer a mortgage it usually benefits both homebuyers and sellers

Owner seller financing of homes is an important alternate instrument in bonding buyers and sellers to consummate a transaction especially in this market of hard to obtain conventional mortgages. It is a very important tool that can be extremely beneficial to both parties under certain conditions. Owner seller financing is also a very powerful marketing aid to help sell your home above your competition in a falling value market such as here in Florida.

As a second mortgage or a bridge loan, owner seller financing has traditionally been used for a homebuyer between the balance of the first mortgage and the down payment. It has also been used as a wrap mortgage, new financing that wraps around the existing mortgage.

But in this market owner seller financing is growing popularity as a first position mortgage with a good down payment of 15% or better.

The benefits of owner seller financing: Big savings in closing costs for the buyer and seller. The interested parties can negotiate the annual rate and amortization schedule, as well other stipulations of the loan. In some higher end transactions, I’ve seen buyers requesting unique items within the sale, such as including appliances, furniture or even cars and boats. All of this is possible because the buyer does not have to contend with a loan underwriter and federal regulations. And almost always there aren’t any mortgage insurance premiums.

For the seller, he or she could receive a higher return on their investment by receiving more equity with interest and avoid short-term capital gain taxation. And in this market the seller is also able to receive higher interest rate than could be received on other types of investments, such as stocks, bonds, and certificates of deposits.

A higher selling price of 10-15% over fair market value is usually experienced as payback for helping the buyer with financing. In our market most property is sold “as is”, with deferred maintenance thereby reducing the need for costly repairs that FHA, VA and conventional lenders would require.

But the seller should screen buyers for their willingness and ability to pay. The seller could also choose which instrument works best: mortgage, deed of trust, land sales contract, etc. to best secure interest until the obligation is paid as specified.

What are the disadvantages? The buyer could pay the loan in full but still not receive title due to other encumbrances not revealed or unknown to the seller. The buyer could make monthly payments on time, but the seller may decide or cannot make payments on any financing that the seller is obligated, thus subjecting the property to foreclosure something that I see everyday.  I will not sell a home to a buyer unless there is clear title upon closing 

Sellers may not get the buyer’s full background, which could make foreclosure a real possibility. The seller should also agree to a minimum of a 15-20% down payment from the buyer to assist in the sale and cover closing costs, and keep the buyer from abandoning the property because of a minimal investment.

In summary, an owner/seller-financed sale can be good, but it must be good for all parties. The concerns of buyer and seller must be addressed during negotiations with an experience owner/seller-financing specialist such as myself. 

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If you are a new to the world of purchasing a home and tired of renting, the journey of seeking homes and getting a loan can be quite exhausting. You need to get help from someone like myself who really knows and understands how to negotiate the best deal for you and that goes for sellers too who would like to achieve a better result in this market. If you would like to get on my daily update of owner financing homes available in all of Florida just click here.  

If you want to find out how you can purchase the house you’ve been wanting anywhere in the Sunshine State of Florida, you can call me anytime at 800-819-4793. JAZ Zydenbos, Keller Williams Elite Partners. 

Oh yes, if you’ve been considering a career in real estate anywhere in the US, and Canada with the fastest growing real estate company in North America, call me about that too or click here for more information. now this is JAZ Zydenbos, Keller Williams Realty Elite Partners wishing you financial success in owner/seller financing now and the years ahead. My direct line is (800) 819-4793.  My website is at www.JAZHomeBuys.com or email me at JazzSold@gmail.com .

                            
                                               As seen in the Washington Post online