We buy houses in Minneapolis St Paul . We have 6 owner financing tips for sellers thinking of selling their house using owner financing in Minneapolis St Paul…
Today there are all kinds of options for selling your house in Minnesota . You can hire a real estate agent and list it with them as they put in to the MLS (Multiple Listing Service) allowing other agents to bring their buyers. You could work with a real estate buying company (like what we do here at Minnesota Cash Home Buyers) and get a fair all-cash offer, or you can consider owner financing and “be the bank” to sell your house to a buyer and collect payments over time.
Owner financing to sell your home is a valuable but under-used strategy that people use to sell their house. It’s normally where you get a down payment from a buyer and offer terms to the buyer to pay you regular monthly payments (just like a mortgage). If it is set up right it can be a great option for financing the sale of your house. Selling your house with owner financing in Minneapolis St Paul can be a option if thought through well
Here are 6 owner financing tips for sellers in Minnesota …
Owner Financing Tip #1: Don’t Focus Only On Price
Price is just one component. Of course, you’ll want to find a price that is fair for both of you but there are other considerations as well (which could benefit you more than the asking price). For all practical purposes, the purchasing price is only one piece of the puzzle.
Owner Financing Tip #2: Timeline
Think about the timeline you want to be paid in. Banks might offer 15, 20, or 30-year mortgages. Do you want to tie up your money and accept payments over that period of time? Your buyer will want to find a timeline that works for them, too: they might not want to be paying you 25 years down the road! One option many buyer and sellers again on is to do a loan that is amortized over lets say 30 years, but the financing on the loan comes dew after 5 years. At that point the amount owed is paid in full. This is called a balloon payment. these are very popular owner financing for sellers in Minneapolis St Paul.
Owner Financing Tip #3: Terms
The terms of the deal are one of the most important yet most overlooked parts of the deal. The terms might include things like how much down payment you want if there’s an early repayment penalty or a late payment penalty, and most important – how much interest you charge.
- Length of financing
- Down payment
- Due on sale clause
If you’re looking to sell your house fast without owner financing for seller, get a fair all-cash offer from us. Just click here now to fill out the form or call our office at (612) 444-5088.
Owner Financing Tip #4: Protect Yourself
Even if you enter into an purchase agreement with someone who is completely trustworthy, things could still go wrong –You start asking your self, is owner financing a good idea for me as a seller? Good question, so make sure you protect yourself. For example, make sure you have insurance and the other person does as well for the various situations that could occur. And consider including a clause that retains the ownership of the house in your name until the house is fully paid. Always have someone else you trust look over everything to make sure you did not forget something.
Owner Financing Tip #5: Build Contingencies
Most of your owner financing agreement will be built around the “ideal plan” – of what would happen if everything goes perfectly. But sometimes things happen outside of our control, so building contingencies allow you to make better decisions if the unexpected happens. For example, what if the buyer no longer wants the house, or can longer pay, or wants to pay early, or wants to use the house in a different way than expected? Or what if your circumstances change and you no longer want to sell or you need to sell even faster? Agree to the contingencies with your buyer ahead of time and the arrangement will be so much smoother.
Owner Financing Tip #6: Get An Attorney
No matter how you ultimately structure your owner financing deal, make sure you work closely with an attorney who can help you. When most people are first talking about about selling their house they think they can use one of those forms you buy at an Office supply store. They are not set up for details that really protect you from things that are not normal that can make your life miserable. If you are going to have owner financing for sellers in Minneapolis St Paul Minnesota , we highly advice having at attorney at least look over the deal. A poorly worded agreement could end up hurting you; an attorney can help.
We hope you were able to gain something out of these tips for selling your house with owner financing in Minneapolis St Paul!