Selling your property owner financed is an excellent way to easily get the price you want for your Asheville house. The process is simple and you’ll likely be able to find a buyer right away, even your current tenant! Learn more about how to set it up in our latest post!
There are many reasons why homeowners in Asheville are choosing to sell their properties via owner financed. If the cash isn’t needed right away, there are many financial benefits to selling your house in this manner. Below, we outline 3 steps to selling your property owner financed agreement in Asheville!
Step #1 – Find The Right Buyers
When entering into an owner financed agreement with a potential buyer, you’ll want to make sure it is someone you know and trust. You don’t want to have to worry about the deal not going through or worry about having to foreclose on the property down the road. You are delaying the receipt of your funds in order to get the price you want, make sure you are working with someone who is worth it! If you have a great, long-term tenant, they are the first place you might want to look when trying to find the right people to move in.
Step #2 – Run The Numbers
As a seller, you are sacrificing immediate cash for a long term gain, so you will want to make sure it’s worth it. How much will you need upfront as a downpayment? How much will the interest be? How long of a mortgage are you willing to give your buyers? Every time the answer to each question changes the numbers for the whole transaction are going to change.
Step #3 – Agree On Terms
There are many things a buyer and seller must agree to before executing their owner financed agreement. Before the buyer and seller sign on the dotted line, make sure to have an attorney look things over. Even the smallest mistake in your contract could have a huge impact down years later.
A few of the financial details you will want to cover include:
- Will there be a down payment?
- How much will the monthly payment be?
- What happens with a default?
Spelling everything out as clearly as possible from the get-go will save you from any disagreement and frustration. When handled correctly, a owner financed agreement is a great way for a homeowner to sell their house in Asheville.