Do you own a house and are thinking about selling? Selling the traditional way (through an agent) will give you access to some buyers. However, if you’re asking, “how do I sell my house owner financing in Minneapolis St Paul Minnesota ” then you’re making a smart move that will give you access to many more buyers than traditionally threw an agent! Keep reading to find out how…
Introduction to “Sell My House Owner Financing In Minneapolis St Paul Minnesota “
When a homeowner sells their home the traditional way (through an real estate agent), the buyers are typically regular buyers who are trying to get a mortgage to buy a house that they will live in. In some markets, there are a lot of these kind of buyers but in other markets there aren’t as many. And real estate agents typically work with these kind of “pre-qualified” buyers who can get a mortgage through a bank.
However, this method of selling is not without its problems. For example, sometimes you have to wait to see if a buyer can even get financing (and sometimes the financing falls through so you’re forced to keep showing your house to find another buyer). So lets say you get an offer on a house and the buyer is preapproved to purchase your home. Great! Then over the next couple of weeks the lender is checking up on everything to see if its in line with their standards so they can close on the loan for the buyer. Sometimes, weeks after you have an accepted offer, the lender comes back and says that the offer on the house was to high and they will not finance the loan. What do you do? Well, the buyer could come up with more down payment to make up the difference. That is unlikely, most of the times the seller has to lower your price. You heard me right, you have to lower your price to sell your house even after you have an agreed upon amount to sell it at.
If you want to increase the likelihood that you’ll sell your house, and expand the range of possible buyers who can buy, and maybe make some extra money along the way, here’s a little-known strategy you might not be aware of: sell your house with owner financing.
Owner financing is when a buyer skips the bank and buys directly from you. In essence, you’re the bank! Just like a bank, you get an up-front deposit and then you get regular payments that pay off the amount owing. In most cases, you hold the title until the house is fully paid off, and then the title transfers to the buyer.
Benefits of selling with owner financing
- Owner financing opens up the opportunity for buyers who for some reason is not able to get a loan from a bank.
- It gives you cash flow, since they buyer will need to pay regular payments to you (just as they would need to pay regular mortgage payments to the bank). They are paying you back the principle and interest.
- It protects you because even if the buyer stops paying, you still own the house! If they default on the payments you get to keep all the payments they have made, the down payment, and you get the house back to resell again. Not bad!
- And unlike owning a rental, there isn’t a lot of property management since that will be the responsibility of the buyer. You might want to just drive by it once in a while to make sure they are keeping it up.
Wondering, “how do I sell my house owner financing in Minneapolis St Paul Minnesota ”? Start by deciding how much you’d like to get for your house in sale price. Advertise to sell it, get an offer and put together the deal. We do advice that you have a lawyer write up the paperwork and close at a title company to make sure that everything is done correctly with federal, state, and local laws.
There are many different ways to sell your house and in this blog post we shared with you how to sell with owner financing. Selling with owner financing isn’t for everyone but if you want more exposure to buyers, plus some cash flow, plus plenty of protection, then selling with owner financing might be right for you.