Everyone has heard that the housing market has taken a beating. Home sales are down across the country. Buyers are having a hard time getting loans, even buyer’s with great credit can’t find a lender. What does this mean to you?
You may want to consider offering to act as the bank by offering owner financing. That means the buyer would pay you instead of a bank.
If you don’t need the money to move right away, or can get by with a smaller amount that the buyer would put up as a deposit, this could be a great option for you.
What are the pluses?
- Buyers put up 10-20% of the purchase price just like they would if they went to a bank
- Buyers make monthly payments to you
- Buyers have a vested interest in keeping up the property since they now own it unlike tenants who don’t care because its not their house
- Buyers will do all the repairs, and maintenance and not call you in the middle of the night because the toilet is running
- You have a steady amount of money coming in every month instead of the wild ride in the stock market or earning less than 1% interest at the bank
- You have a better chance of getting the retail price for your house instead of competing against the short sales and foreclosures in your neighborhood
- Unless there’s a deed restriction or home owners association rule against it, you can’t tell them not to smoke in the house or have pets
- Unless there is a home owners association, they may not take care of the yard the way you would
- If the buyers don’t pay, you may have to foreclose