Considering owner financing to sell your home? read on and learn these owner financing tips for sellers in Knoxville…
There are several different ways in which you can sell your home. Calling a real estate agent to put your home on the market may not be the best move . Contacting a locally trusted real estate home buying company you can work with like East Tennessee Home Buyers can ensure that you get a fair all-cash offer! And finally, if you like playing bank owner financing is a convenient option to sell your home to a prospective buyer and collect payments over time.
If you decide seller financing is right for you then here are 6 owner financing tips for sellers in Knoxville…
Owner Financing Tip #1: Price Isn’t Everything
The price you ultimately agree on is just one piece of the seller financing puzzle. Obviously, you’ll want to find a price that you both can agree on but there are other considerations as well (which could benefit you more than the asking price).
Owner Financing Tip #2: Amortization Schedule
Another way to think of an amortization schedule is to equate it with a timeline. How long are you willing to wait for your money? A typical mortgage offered by your local bank is generally 15, 20 or even 30 years. You buyer, depending on their circumstances may not want to pay interest for the next 20 or 30 years! Do you want to accept payments over that period of time as well? Interest only payments with a lump sum balloon due in 5 to 10 years is a popular option. Maybe you can’t wait that long and need funds now. East Tennessee cash home buyers can make you an all cash offer and close quickly!
Owner Financing Tip #3: Terms Of the Deal
To say the terms of the deal are important would be an understatement, this is where the rubber hits the road! Knowing how to structure the terms appropriately means everything. If your buyers is making a large down payment a lower interest rate may be in order. Are you going to charge an early repayment penalty or a late payment penalty? These are just a few thing you need to think about.
Owner Financing Tip #4: Be Smart & Protect Yourself
On the outside your buyer may appear to be an honest hardworking individual but things could still go wrong – so you need to be prepared for that. For example, do you have the proper insurance in place? What if they’re responsible for major damage to the property? It could make more sense to cut your losses by contacting we buy houses Knoxville and liquidating at a below market price. Make sure you keep a copy of the note & mortgage in a safe and secure location, this details your ownership of the house and should remain in your name until the house is fully paid off.
Owner Financing Tip #5: Always Build In Contingencies
Contingencies are another form or protection meant to insulate you the seller and should be part of your “ideal plan”. – In a perfect world, everything goes as planned and without issue but sometimes things happen outside of our control. If this occurs are you prepared to sell at a discount to we buy houses Knoxville or another local investor? Always make it a habit to build contingencies in every contract, this will 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? If that issue arrises, you should call East TN home buyers immediately! 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
It never hurts to have sound legal advice! Working closely with an attorney who has your best interest in mind can help you avoid many sleepless nights… A poorly structured agreement could end costing you big bucks; an attorney can help.