Great article from https://www.creonline.com/ by William Bronchick J.D that talks about both sides of the owner carry benefits for both the buyer and seller.
“1. Highest Price. There is no doubt that a seller can insist on
and receive the highest price when offering flexible owner-financing
terms. In many cases, the seller can receive more than the fair market value of the property by offering these “soft” terms. People are always willing to pay a premium for non-qualifying financing”
Anytime you are selling anything it is always the terms and how many buyers can qualify. With owner carry you can get a nice down payment (Usually 10% of the sale price of the home) and create a great income for the seller and a nice home for the buyer. There are a lot of buyers that have a ton of cash that cannot get traditional loans. Buying the home in areas were this works is also very important also to long term and successful transactions for all parties.
“2. Cash. Nearly every seller says he wants all cash, but few need
it. What the typical seller wants is the most net cash from the deal.
Often, the seller has to pay closing costs, title insurance, broker
fees, and the balance of the existing financing.’
You always want to make sure that the title of a home is clear. I am a Realtor and understand how to make a transaction safe for both parties. For example you will want to make sure as a buyer that the seller does not refinance and cash out without you knowing. as a realtor I understand how to make the transactions safe. Broker fees look like nothing when the seller backs out of a deal or refinances all the equity out. Realtors understand how to set these types of transactions up so everyone knows what is going on with the property and everyone knows what the transaction detail are.
” 3. No Loan Costs. One of the biggest benefits for the buyer is
not having to pay the costs associated with conventional loans. Points,
origination fees, underwriting charges, appraisal, credit reports, title
insurance and the plethora of other “junk” fees charged by conventional
lenders can amount to thousands of dollars at closing. The buyer is
free from these with an owner-financed installment sale.”
There is a big savings in the loan area, but I would also get a BPO (Brokers Pricing Opinion) as a buyer to make sure the value of the home. Paying to much for a property is not good business. That is why you should always have a Realtor or Attorney involved in these types of transactions. Every state has different rules and as a seller you need to know them. Lets face it when the buy sells the home they want to make some money through their equity position.
If you have a home you want to sale, think about the owner carry method and get the top price for your home. I understand the way these need to be set up and can help you sale your home for top dollar. Call Brett 216-703-5740 Century 21 Premiere and 602-363-6551 EXP Realty