6 Owner Financing Tips for Sellers in Philadelphia

Financing Tips for Sellers

If you’re thinking of selling your house using owner financing, read this blog post to learn the six owner financing tips for sellers in Philadelphia… There are many ways to sell your home. You could list it on the market and see what sellers will pay. You could work with a company that provides various real estate services (like we do here at Buying Property 215) and receive a fair all-cash offer or consider owner financing and “be the bank” to sell your house to a buyer and collect payments over time. Owner financing is a valuable but under-used strategy to sell your home. It’s where you offer terms to the buyer to pay you regular payments (just like a mortgage). Here are six owner financing tips for sellers in Philadelphia

Owner Financing Tip #1: Don’t Focus Only on Price

Price is just one of the many components. You’ll want to find a reasonable price for both of you, but there are other considerations to determine (which could benefit you more than the asking price).

Owner Financing Tip #2: Timeline

Think about the timeline you want to be paid in. Banks might offer 5, 10, 15, 20, and 25-year mortgages. Do you want to accept payments over that extended period? Your home buyer will also want to find a timeline that works for them: they might not want to pay you 25 years later!

Owner Financing Tip #3: Terms

The terms of the deal are one of the most important yet most overlooked parts of the agreement. The words might include terms like how much down payment you want if there’s an early repayment penalty or a late payment penalty, and how much interest you charge!

Owner Financing Tip #4: Protect Yourself

Even if you agree with someone who appears completely trustworthy, things could still go wrong – so always make sure you protect yourself. For example, make sure you have insurance, and the other person does 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.

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 as planned. But sometimes things happen outside our control since we live life on life’s terms, so building contingencies allow you to make better decisions if the unexpected happens. For example, what if the buyer no longer desires to purchase the house, can longer pay, wants to pay early, or uses the house differently than expected? Or what if your circumstances change and you no longer wish to sell property, or you need to sell even faster? Agree to the contingencies with your buyer ahead of time, and the arrangement will be much smoother when avoiding obstacles!

Owner Financing Tip #6: Get An Attorney

No matter how you ultimately structure your owner financing deal, make sure you work closely with a real estate attorney who can help you. A poorly worded agreement could hurt you; an attorney can certainly help. It’s always vital to hire a professional for assistance in circumstances you may be unfamiliar with. It may be an additional expense, but it will help prevent costly obstacles!   

Are you thinking about selling your house?

  • We purchase property in any condition regardless of the situation!
  • Close on a time frame best suited for you (we can close within 14-21 days!)
  • Our sellers are responsible for NO CLOSING COSTS & NO FEES.
  • We conduct no inspections or showings!
  • Complete no repairs or renovations.
  • Highest offer guaranteed.
  • Buying Property 215 is accredited by the Better Business Bureau with an A+ rating!  

If you’re considering selling property and are exploring your options, consider selling directly to us. If you don’t want to go through the hassle and headache of selling on the market, then we might be able to help. Call our team at [215-359-6090] or click here and fill out the form and we’ll provide you with an excellent all-cash offer on your house.

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