Should a Property Owner Offer Seller Financing?

Offer Seller Financing on your FSBO HomeSay you own a nice, mid-priced home and have been trying to sell it FSBO for several months. And say that home is located in a market not fortunate enough to be on the “Top 10 Hottest Real Estate Cities in America” list.

You’ve had plenty of showings and several people have said they love the place, but you haven’t had any worthwhile conversations past that. Comments are positive about the property and the price, but no one has made an offer.

So what’s the next step?

Some real estate experts look at the situation above and conclude, “Well, obviously the asking price is too high.” Or maybe “You need a real estate agent.”

But many times, neither of those ideas are the correct assessment.

In markets where real estate has not fully rebounded, the overall economy of the region dictates how many potential Buyers are bank mortgage eligible. So while the downturn of the last several years has built up demand to buy new homes, the reality is that it’s difficult for many people to qualify for the mortgage loan amount they need to buy the home they truly want.

So it could be a MARKET problem — not a PRICE or FSBO problem.


Solve the Market Problem: Offer Seller Financing

As an FSBO Seller, how do you overcome the realities of a local market? By offering a solution to the REAL problem a Buyer faces, of course! That solution: offer Seller Financing.

How? Add the words ‘Seller-Financing Available’ to your online real estate listings and your For Sale signs.

Many banks today won’t approve a Buyer’s mortgage loan without a nearly perfect credit score and a big down-payment. That can limit the number of potential Buyers for your property. So remove the bank from the home sale process: offer Seller Financing!

With Seller-Financing, the SELLER decides who purchases the property – not some loan officer. The SELLER sets the sale price with the Buyer – not some appraiser. And the SELLER earns the interest fees paid by the Buyer – not some bank!

With those three words — Seller-Financing Available — you have eliminated the biggest problem that exists in most markets, the limited availability of bank mortgage loans.

Watch how the conversations change. Buyers will be more open to considering the property because they know upfront they won’t have to jump through bank-imposed hoops to get financed.

And the Seller won’t have to drop his price just to take any deal he can.

In fact, in most cases the Seller makes an even better return, as he can hold the line on price because 1) he is helping the Buyer get into the property, and 2) he will collect the interest fees normally paid to the Buyer’s bank!

But let’s be clear: a Seller should not offer Seller Financing without a strong plan. Do the wrong deal using the wrong contract terms with the wrong Buyer, and say hello to a difficult scenario. Seller-Financed transactions require experience, knowledge and oversight.

RealtyPact makes Seller-Financing simple with three real estate contract options: a Land Contract, a Seller-Financed Mortgage or a Lease-to-Own Contract.

Give your property sale every chance to succeed: offer Seller Financing. Add the words “Seller Financing Available” to all of your online real estate listings. Then watch more potential Buyers consider your FSBO home.

Learn how to GET STARTED with RealtyPact now. Go! >