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So, you’ve come to the point where you decided it’s time to sell your home, and you’re reviewing your options on how to go about it. One of those options should be “seller financing” (also referred to as “owner financing” sometimes). If you’re wondering if it’s the right fit for you to sell your home in Seattle, then you’ve come to the right place – we’ll take a look at it in this blog post.
How Owner Financing Works
In almost every home sale, the buyer only puts up a portion of the money for the house through a down payment and gets the rest of the money from a lender (usually a bank), to which they pay a monthly mortgage payment. They do this typically over a 15- or 30-year term until the loan is paid back in full.
Of course, this is the method you’ve probably heard of or experienced before. Owner financing is an alternative to this traditional method.
Owner financing is the same as the traditional approach but for one aspect – you, the seller, takes on the role of the bank. Here’s how: the buyer gives you a down payment, just like they would to the bank; the buyer makes regular payments to you until the loan is satisfied. AT that time, the buyer takes ownership of the home.
You May Be Wondering If Owner Financing Is A Good Idea In Seattle
Most sellers are happy they used this method, and here’s why:
- They can reach a larger pool of potential buyers, since those who can’t get traditional financing aren’t excluded
- They enjoy monthly payments from the buyer, which gives them cash flow
- They have the leverage of still owning the house in case the buyer reneges on their payments
- They don’t have to perform any management functions (since they’re not renting the home out)
What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. 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 property, owner financing might be a great option for you.
As you can see, there really isn’t much to dislike about owner financing. You can still sell your home but collect some great benefits in the meantime. The same approach applies to landlords looking to unload rental properties.
If you like the notion of receiving payments over time, or just want to make sure you reach as many buyers as you can, then seller financing could be a great choice for you. It’s worth the time to explore this option closely before deciding which route you want to go.