I am trying to sell a house in Palmdale, California, and I will do owner financing, which means no bank qualifying or downpayment necessary. A perfect win-win for myself and any interested buyer who wants a great deal at a fair price and interest rate without having to go through a mortgage application.
2006-09-27 14:25:40 · 8 answers · asked by markmania@sbcglobal.net 1 in Business & Finance ➔ Renting & Real Estate
whoa, Nelly, I think you still want them to go through some sort of application process. You don't want someone moving into your house and defaulting on you, it's messy and time consuming to get your house back.
Your real estate agent can put owner financing available in the MLS listing.
2006-09-27 14:29:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I have never seen an owner-finaced home that went well for the seller. Typically a buyer that cannot qualify for bank financing is not someone you want living in your home. They tear up the property and then default on the payments. You are left with a trashy property and it can take a year to get the people moved out.
The key is the asking price verses the appraisel value. Most houses are on the market at less than their appraised value. If you raise the price to full appraisel value and then use the difference to assist the buyer, you can do alot to help someone qualify for a loan.
There are a few ways to help a buyer qualify for financing:
"Sweat-equity" The buyer agrees to work on the home with the owner in exchange for a cash down payment credit. In this case you would give the buyer a check for the work done and the buyer would use that check as the downpayment for the house.
The buyer can "pay the closing costs." This will allow many more buyers to qualify.
The seller can agree to take a trade for the downpayment in jewelry, other property, or an automobile.
The seller can agree to make the first 1, 2 or even 6 payments on the house.
I have purchased 5 homes in the last 10 years and at closing I have always gotten cash at closing. The last one was $199,000: the seller paid all closing costs, the first 6 house payments and $5,000 to purchase new carpet at my convenience. I walked away from the final signing with the house, $5,000 and no payments due for 6 months.
2006-09-27 21:49:03 · answer #2 · answered by newsgirlinos2 5 · 0⤊ 0⤋
Not sure if this would help. Usually, a housing market correction last for years. It is unlikely things will brighten up in a few months, afterall, this bubble took 5 years for form.
It might be better to give some discount so you unload the house quickly and can use the gain of the home to make money elsewhere quickly. At the same time, you will save money by not paying mortgage for the next 5 months.
For example, if mortgage is $2500/mo. and you have $300,000 gain sitting in the house, by selling it now rather than 5 months later will save you $12500. It will also earn you as much as $7000 from interests (Assuming CD are paying 5.5% or higher).
Total financial benefit for selling early would be $20,000. I would give buyer some discount just because of that.
Finally, keeping a house in selling condition is a lot of work. If your realtor does staging, it costs extra to rent furnitures. If you are living in the unit, it takes extra effort to keep it clean. So, sell it fast!
http://money.cnn.com/2006/09/25/news/economy/homesales2/index.htm?postversion=2006092513
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
2006-09-28 03:47:42 · answer #3 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Wow, great advertising. Better yet, try craigslist.com.
Also, pay a real estate agent 5% where the agentgets 1% and the buyer's agent gets 4%. Then state that you will pay all closing cost up to 3% of your home's selling price. Now you made the offer more attractive to the agents and the buyers without having to foreclose or worry about the first foreclosing if the new buyer doesn't pay up.
Regards
2006-09-27 21:34:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Not always a "great deal",; however, try site under "for sale by owner". What happens when you need the money tied up in the home? You need time guidelines to have new owner take on new loan. Also eviction is an ugly thing.
2006-09-27 21:46:32 · answer #5 · answered by meganlee48 1 · 0⤊ 0⤋
Advertise in the newspaper for sale by owner. with owner financing.
2006-09-27 21:28:15 · answer #6 · answered by jassy 3 · 0⤊ 0⤋
Try "Help-U-Sell" you can save on realtor fees too.
2006-09-28 00:30:34 · answer #7 · answered by ? 2 · 0⤊ 0⤋
Pay to have it put on the MLS.
2006-09-27 21:32:37 · answer #8 · answered by Plasmapuppy 7 · 0⤊ 0⤋