Owner-Financing is a simple concept, designed to provide benefits to both parties entering into the agreement, rather than helping only a single party. The terms of owner-financing can work differently for every situation depending on both parties. If the terms seem unfair to one party, then the deal is not made, or the negotiations continue until an agreement is made. Below are 5 benefits of owner-financing for the seller:
Better Returns. Owner-financing provides a convenient way to sellers to deal and receive higher interest rates. Often, buyers who can’t qualify for traditional loans or don’t want to hassle with the process of banks can opt for owner financing. It allows the seller to negotiate the terms for a long-term gain and the buyer apparently will pay more for a property because of the convenience of owner financing. Hence better returns for the seller.
You Negotiate the Terms. As the buyer gets a simple way to purchase the property, the terms of negotiation can be up to you. Stand firm on the terms that matter to you and make the terms as beneficial as possible.
There is a Larger Pool of Buyers. There are many untapped buyers who can’t qualify for a bank loan and are willingly looking for a convenient option.
Easier Default Process. The process of owner-financing is comparatively much easier and quicker than a conventional loan. Judicial foreclosure or a conventional process can go on for months or even years, which can cost the seller time and money. While the typical default period for real estate contract is 30-days. Visit an attorney to get further details.
You Can Sell the Contract Later. A secondary market exists, where a buyer is offering to buy your interest in the real estate contact. If you want to sell your active real estate contract, you can easily get a buyer and can sell it for cash. Visit Sunwest Escrow for more information on owner-financing in Albuquerque or call 505-237-2225.