Have you seen owner financing advertised buy you’re not sure what it means? When it comes to maximizing profits, owner financing your home to a prospective buyer is the way to go. Whether it’s offering a lease with the option to purchase or a land contract with a balloon, the terms of the owner financing should give your buyers time to get the affairs in order, more specifically repair their credit. The larger the down payment, the less likely your buyer will default. Whatever route you decide to go, make sure your interest is protected! There are many creative strategies sellers can use to sell their homes, and seeking the advice of an attorney is a good place to start.
While you may be contemplating owner financing, there are cash buyers near me in your area ready to make an offer. East Tennessee cash home buyers can purchase your homes as-is in Knoxville and surrounding counties. The benefits of owner financing still make it a popular choice among sellers who can afford to wait for bigger profits down the road while many sellers simply don’t have that option when extenuating circumstances force them to sell quickly. You can learn more about providing this opportunity to buyers. We will discuss the benefits of using owner financing to sell your house in Knoxville.
Non-Negotiable Price
This is where maximizing profits comes into focus! This will become obvious why the seller can benefit from using owner financing to sell your house in Knoxville! For starters, your purchase price is at or about market value. Many borrowers are willing to pay a premium for the opportunity to enjoy the benefits that homeownership brings. If housing prices drop, you benefit from selling at a profit and gain the interest earned during the life of the loan. If housing prices rise, the buyer may achieve an increase in equity when they refinance the property.
Current Cash Flow
The monthly payments towards interest on the loan will add cash monthly to your regular income, which is an attractive benefit of using owner financing to sell your house in Knoxville. And the return on your investment is typically higher than with most fixed-income investments. As the downpayment is negotiable, you’ll receive an extra cash boost when the buyers close. You can even negotiate periodic payments to help the buyers meet your demand for the downpayment of up to 20 percent or more over time. If however, you need a lump sum payout, East Tn home buyers can provide this service.
Quick Closing
One of the benefits of using we buy houses Knoxville instead of owner financing is the ability to close quickly and skip all of the red tape associated with traditional mortgages. This speedy process means your home will sell and close fast with cash which is a plus to sellers who are excited to sell quickly and get on with their lives. The ability to close in a matter of days may even make your home stand out among many sellers who urgently need to move.
Buyer Pool
By offering seller financing, you open the ability to purchase to a whole new market. Having more potential buyers from we buy houses Knoxville to first-time homebuyers makes this an excellent benefit to selling your home in Knoxville. As buyers are entering the market, all too many may now find themselves with less than perfect credit. This status prevents them from financing a new home through conventional lenders as they are unable to meet the stringent qualifications for loan approval. This underserved sector of potential homebuyers is where you can step in as a home seller and offer a beneficial solution to you and the buyer.
East Tennessee Home Buyers LLC fully understands the benefits of using owner financing to sell your house in Knoxville. If you would like to learn more, East Tennessee Home Buyers LLC is happy to answer any questions or concerns you may have, with absolutely no obligation. Call East Tennessee Home Buyers LLC at (865) 935-8680 or send us a message today!