Owner financing is available and it is an option that may help you sell your Tucson home faster! You may have heard the term, but what does it mean. As a homeowner, you can sell your property through owner financing and gain a great deal of profit on your investment. There are many ways to structure this type of loan and there are risks as well as rewards if you choose to sell your home this way. Basically, you become the Bank. You will be the beneficiary of any interest paid, but you also take on the risk of default.
Should your buyer default, it will be up to you to pursue the debt or maybe even foreclose. As a home seller you can make several creative financing arrangements to suit the needs of the buyers, as well as your own. It is advisable to seek legal counsel to ensure that the contract protects both yourself and the buyer in the transaction.
Even in the strong Seller’s Market that we are currently experiencing, some home owners are selling their home in Tucson this way.
While you may be financing the entire loan for some buyers, others may find they qualify for a conventional mortgage but still fall short of the required downpayment to get into your property. Therefore you could finance only a portion of the transaction. To learn more about providing this opportunity to buyers, we will discuss five benefits of using owner financing to sell your house in Tucson.
Potentially Higher Selling Price
One of the benefits of using owner financing to sell your house in Tucson is that you are more likely to get your asking price. You hold the advantage. The borrowers are willing to pay extra for the opportunity to enjoy the benefits that homeownership in Tucson brings. If housing prices drop, you benefit from selling at a profit and gain the interest earned during the life of the loan. If housing prices rise, the buyer may achieve an increase in equity when they refinance the property.
Ongoing Cash Flow
The monthly payments towards interest on the loan will add cash monthly to your regular income, which is an attractive benefit of using owner financing to sell your house in Tucson. And the return on your investment is typically higher than with most fixed-income investments. As the downpayment is negotiable, you’ll receive an extra cash boost when the buyers close. You can even negotiate periodic payments to help the buyers meet your demand for the downpayment of up to 20 percent or more over time.
One of the benefits of using owner financing to sell your house in Tucson is that you can skip all of the red tape associated with traditional mortgages. This speedy process means your home will sell and close fast, which is a plus to buyers who are excited to make a move from renting to homeownership right now. The ability to close in 30 days or less may even make your home stand out among many to a buyer with an urgent need to move. This is especially true right now since getting an appraisal, required from a traditional lender, for a home sold in Tucson can take six weeks or more right now.
Larger Buyer Pool
By offering seller financing, you open the ability to purchase to a whole new market. Having more potential buyers for your property is an excellent benefit of using owner financing to sell your home in Tucson. Many potential homebuyers find themselves with less than perfect credit. This status prevents them from financing a new home through conventional lenders as they are unable to meet the stringent qualifications for loan approval. This underserved sector of potential homebuyers is where you can step in as a home seller and offer a beneficial solution to you and the buyer.
AZ Problem Solvers, LLC fully understands the benefits of using owner financing to sell your house in Tucson. If you would like to learn more, AZ Problem Solvers, LLC is happy to answer any questions or concerns you may have, with absolutely no obligation. Call AZ Problem Solvers, LLC at (520) 312-0417 or send us a message today!