Offering seller financing will open the doors of opportunity and will allow you to work with more potential buyers. Having money in the pocket, the more flexible you can be and the more options you can offer your potential buyers, the faster you will get your property sold. One of the huge advantages of financing your property is that you can almost always ask for a significantly higher price on the property. Everyone wants to make good money and they adopt different methods to do so. One of the ways to make good money wisely is seller financing. Some people don’t like it for different reasons, but this is the one good way of making good money.
It is the type of contract between the seller and the buyer. The contract is very similar as a buyer makes a contract with the loan. In seller financing, the seller of the property or the home lend the loan to the buyer and receive the monthly payments. There is an interest charged on these payments and users usually pay willingly to get this loan because of various reasons.
Seller financing is a good way of making money and you could earn more than the actual value of your home. Many people like single cash payment for their home and that’s it, they could not earn more from their home after the single payment. On the other side, the seller finances charge interest rates and earn more from their homes and it simply makes sense.
Why people would take the help of seller financing?
For many people, the price and the interest rate on the property are not important. As long as the monthly amount is in control of their earnings, they are willing to buy the property. The monthly payment is set by the seller and so he could set the monthly payment according to the need of the buyer. In this way, customers are becoming really satisfied as they have no contract with the bank and they are not bound to the conditions of the bank. These are some reasons why people are more interested in seller financing.
Advantage of seller financing
The seller could earn a great amount of money using seller financing. He even could earn more interest as compared to the bank. If the bank charges 3-4% on the loan, the seller could earn more than 10%. The seller could offer different features to the customer and could earn a great amount of money from him.
The important thing for the customer is the monthly payment. If the customer is easily paying the payments, he doesn’t care about the interest rate and is happy to pay monthly to the seller. Different people have different priorities, some like the low price of the home and some like the 0% interest rate.
All these people could easily manage by the seller financing and in the end, they are paying the amount, you wanted to achieve from them. Another advantage of seller financing is to get rid of the responsibility. It means once the buyer starts to pay the monthly payments, the seller is no more responsible for the things happening in the house.
The ultimate responsible person for the damage or any happening is the buyer. It causes relief to the seller and he makes good money so seller financing really makes sense.