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Some Options to Sell Your Property Fast There are many offers and ads how to sell properties, from lease option to owner financing, especially when the real estate market becomes soft. When this soft real estate market occurs, signalling a buyer’s market rather than a seller’s market, property owners are required to think creatively on how to sell and could consider the mode of concessions. Therefore, sellers are turning to some creative financing solutions in order to entice buyers, shorten listing times and create compensation for the tight credit market. The first means that sellers are offering is called the lease option where this arrangement allows the potential buyer to both lease or rent the property and have the choice to buy later on the property being rented. Usually, the potential buyer’s option money being paid is non-refundable, but a portion of the lease payments is often also applied on the selling price of the property.
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Another means implemented by the seller to attract potential buyers of the property is to offer seller financing, and this means that the seller offers to finance the whole or a part of the amount purchased by the buyer. This method is also termed as owner financing or instalment sale, where the buyer makes the payment to the seller for the agreed period of time rather than getting a bank loan or a traditional mortgage loan.
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Considering what these methods offer, it is also advisable for the seller to check out the pros and cons from his or her point of view. In the seller financing method, among the pros are that the down payment is usually greater, the real estate taxes, property insurance and upkeep are the responsibility of the buyer, and that the buyer is more likely to act like the owner of the property since they have already bought the property. In this method of purchase, another pro is with regards to the greater liquidity in payments done with private mortgage rather than lease payments, and this will entice more investors to pay for cash now than future payments. An obvious positive advantage of this financing is that the seller earns interest on the amount being financed. Once the buyer becomes delinquent of his or her payments in this mode of transaction, it will be difficult for the seller to foreclose as compared to the eviction process. Another disadvantage of this arrangement is that the term of repayment can be longer than a sale based on instalment. With the lease option, the positive side of it are a faster eviction process if the buyer misses payments and that the owner of the property will gain some upside of the value of the property if there is an appreciation of real estate market and if the buyer will not push through in buying the property.

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