With the changes to the economy that have been seen in recent years, many local homeowners are starting to discover that there are new ways to sell their houses. And that these alternative approaches (such as choosing to sell your house via owner financing or FSBO) can sometimes have more benefits than the traditional method. As such, one no longer has to sell their house through an agent in order to find a buyer and get a good offer.
But if that’s the case, the question then becomes, what are these alternative ways to sell your home fast? And how exactly will they benefit you? Well, that’s a bit of a loaded question with quite the long answer. But to break it down for you, we are going to focus on owner-financing in this blog, and show you how . So if you’re interested in find out more about the ins and outs of seller-financed real estate deals, you’ve come to the right place.
Below, we are going to talk about how to sell a house through owner financing in Bloomington MN and we’ll walk you through the process step-by-step.
How To Sell A House Through Owner Financing in Bloomington MN
Read on to learn all the most important details and steps you’ll need to know in order to sell a house via owner financing.
Step 1: Do you own the house outright or do you have a mortgage?
In some states, if you have a mortgage, you may not be able to offer owner financing. So the first step is to determine whether you have a mortgage or not.
Step 2: Consult a real estate attorney for help crafting the contracts
Through owner-financing, you will essentially be acting like the bank. In this arrangement, the buyer will pay you a down payment, and then pay you regular monthly payments until the house has been fully paid off. Once this is done, the house will then officially become their property.
Before you proceed with this arrangement, it is important to make sure you talk to a real estate attorney. You must ensure that you are protected and obeying all federal, local, and state laws! If you need the name of a good housing lawyer in Bloomington MN, contact us today by calling (612) 351-2384. We’d be happy to make an introduction.
Step 3: Market your house online and and through paper media
Once your paperwork is in place, the next step is to advertise that you have a house for sale. Be sure to let people know that you offer seller financing. When marketing, there is no limit to how much work you should do – the more you can do, the better.
Step 4: Host Showings and Open House for potential buyers
As your marketing captures the attention of potential buyers, you’ll want to begin organizing showings and scheduling open houses. In this step, it is very important to work with your buyers and coordinate showing times that are good for both them and you. When someone makes an offer on your house, negotiate a good price and fair terms. When doing this, you’ll want to find the middle ground that will ensure a win/win situation for both you and your buyer. Once you and your buyer have come to an agreement, it will now be the time to sign the paperwork.
Step 5: Collect the down payment and hand over the keys
Once you’ve agree on a price and you’ve signed the papers, collect the down payment and hand over the keys. In most situations, you will continue to own the house and collect payments until the house is paid off… then ownership will be transferred to your buyer.
So there you have it. Those are our top 5 steps for understanding owner financing. But if you’ve read through them and feel like owner financing isn’t for you, that’s completely okay too. Instead, you could opt to sell your house directly to FastPath Home Buyers. We buy houses in Bloomington MN and offer great prices.
For more information on this subject, or if you’d like to sell your house to FastPath, feel free to contact us either by calling (612) 351-2384 or by filling out the short form below.
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