5 Benefits of Offering Owner Financing To Home Buyers In Washington DC, PG County, Montgomery County

The Benefits of Owner Financing - Land Endeavor
For sellers, owner financing provides a faster way to close because buyers can skip the lengthy mortgage process.

A home is typically the largest single investment that a person ever makes. Because of the hefty price tag, there’s usually some type of financing involved, such as a mortgage. One alternative is owner financing, which happens when a buyer finances the purchase directly through the seller, instead of going through a conventional mortgage lender or bank.  While the home won’t be sold outright until the end of the agreement, it can be a way to increase what you’re making each month, while almost guaranteeing a sale on a pre-determined date. Many people don’t consider this option when selling their Washington DC, PG County, Montgomery County house. However, if you don’t need the entirety of your proceeds upfront, selling your house in Washington DC, PG County, Montgomery County with a rent to own agreement may be right for you!

Sell Faster

When you use a rent-to-own agreement or offer owner financing to buyers, you will open the door for many people to buy your house who may not have been able to before. More potential buyers means that you will be able to get a contract signed much more quickly. You will be able to find potential buyers who are eager and determined to follow through on their end of the transaction. Be sure to do your homework on your prospective borrower. If a traditional bank had turned them down in the part, there is likely a reason why.

Create Consistent Income

By offering owner fi

nancing, you’ll be able to bring in a consistent income each month, with a lower risk of a late or missed payment. Your tenants are invested in the property and are much less likely to default on their payments when they know they are in it to eventually own the home outright. In most cases, you aren’t going to have to worry about any vacancy during the life up the agreement. A savvy investor may be able to facilitate a few of these agreements on multiple properties, thus producing a very strong, somewhat passive, income for themselves.

PROS FOR SELLER

Can sell “as is”: Potential to sell without making costly repairs that traditional lenders might require.

A good investment: Potential to earn better rates on the money that you raised from selling your home than you would from investing the money elsewhere.

Lump-sum option: The promissory note can be sold to an investor, providing a lump-sum payment right away.

Retain title: If the buyer defaults, then you keep the down payment, any money that was paid—and the house.

Sell faster: Potential to sell and close faster, since buyers avoid the mortgage process.

Get The Price You Want

People who are taking advantage of your owner financing offer are going to have less room to negotiate for a lower price. In many cases, they are eager to buy, especially if they haven’t been able to in the past. As such, you will likely be able to find someone who will pay you exactly what you want for the house, even if it does take a little bit of time to collect 100% of your proceeds.

Collect More Each Month

In addition to getting the overall price you would like to receive for the property, your tenant will also likely pay you a higher than average “rent” payment each month until the agreement has completed and they buy the house outright. In some cases, a percentage of the monthly payment will go toward the down payment on the house, owners can still find themselves collecting a higher than average check each month.

Peace Of Mind

When you consider offering owner financing to prospective buyers, you’ll get the peace of mind in knowing that the people moving in are going to take care of the home. If they trash it, miss a payment, or otherwise violate the agreement, they could be out a hefty down payment along with their opportunity to purchase your home.

Offering owner financing for your house in Washington DC, PG County, Montgomery County may feel risky, however it is how investors and homeowners all over the country are able to create consistent income while selling a house they’d rather not hold onto for the long term. Our team is happy to answer all of your questions and help you facilitate the process!

Reach out to us today to learn more about offering owner financing when trying to sell your house fast in Washington DC, PG County, Montgomery County!

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now...

We buy houses in ANY CONDITION in Washington DC and Maryland. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call 1-800-777-4773...
  • This field is for validation purposes and should be left unchanged.