We know this is a long post but it is a key element in today's market that many home seller's are unaware of that could help them to sell their home faster.
The Benefits
You become a flexible seller when you carry back financing and this attracts many more potential buyers. You have the say, not some bank or lender, when it comes to who will buy your house and on what terms. This makes what you're offering more appealing than a regularly listed home for sale. The biggest benefit of carrying back the financing on the home you're selling is that you have more control over the major aspects of the sale: the sales price and the interest rate. You will be able to get a higher sales price on your home if you do seller financing instead of waiting for an all cash buyer - which, whoever you get a cash offer from will expect a deep discount. You will also not be able to sell as fast if you're waiting for someone that has a bank loan to buy your home. Banks have very strict guidelines these days and it is difficult for the majority of people to qualify for one of their loans. The interest rate will be determined by you as well. There are federal regulations that you'll have to follow, but you will have the ability to earn more interest on your seller financing note than if you were to outright sell your home and put the money into a bank account or CD.
Another great benefit is that you will be receiving monthly income that is secured by a property that you have in depth knowledge of. So in addition to not having the responsibility of two homes (your own residence plus another one that you are trying to sell), you will be adding to your income, which gives you more freedom. You will not be responsible for the maintenance and upkeep of the other property at all, so you will know exactly how much you will be making every month - there will be no leaky toilets, no phone calls in the middle of the night, no unexpected expenses - just profit.
What to Do
When trying to sell a home there are many things you need to take into account. The first thing you need to look at is how your home is being presented. Make sure you do a good cleaning - inside and out. Curb appeal is extremely important because it is the first impression everyone will have of your home, so make sure you mow the lawn and clean up the landscaping, powerwash the siding, clean the windows, etc. The atmosphere inside the home is just as important, people need to visualize themselves living there. Also be sure you take care of any fix-it projects you may have not gotten around to or are just now noticing. People want to buy homes that have the least amount of problems and you can easily avoid that by applying a little bit of paint, cleaning out the ventilation system, and generally making it move in ready.
Next, you'll need to think of how you're going to market your property. Now a days, there are some great free/inexpensive ways to let people know that your home is for sale such as posting it online on sites like Craigslist.org, ForSaleByOwner.com, Zillow.com, Trulia.com, and CyberHomes.com, not to mention some more traditional ways like a For Sale sign in your yard, posting For Sale signs at busy street intersections in your neighborhood, place an ad in the local paper's classifieds, etc. Any marketing is good marketing and the more the better. Using a Realtor can be a good idea because they know the local market, they have a pre-built marketing campaign, and they are able to post your home on the MLS - for 3-6% commission paid by the seller and a 30-60 day closing process. But you also need to look at the option of using a wholesale investor - a real estate investor that does everything a Realtor does (with the exception of posting on the MLS) PLUS all the above mentioned free/inexpensive techniques - for a negotiable commission paid by the buyer, NOT THE SELLER. Wholesalers also have access to all cash buyers which means a quick, clean closings in usually 1-3 weeks.
Just remember, the norm is not necessarily going to work in today's market so you need to start thinking outside the box to get the results you want.
Kelly & Jason
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