It can be an intimidating undertaking to sell a house, even moreso when the market is volatile and unpredictable. It’s often the case that homeowners will list their homes for sale, only to be faced with the reality months later that during that entire time, they have not received any reasonable offers. This is where a creative approach such as owner financing enters the picture. Owner financing is a type of real estate transaction wherein the seller acts as the lender to their buyer, allowing the buyer to pay a cash down payment at the outset, then make recurring monthly payments to the seller over a specified period of time. In this blog post, we cover 5 things you really should know about selling your Middletown, Dayton, or Cincinnati house with owner financing.
1. Offering Owner Financing Can Help You Achieve Your Asking Price
One of the primary benefits of selling your Middletown, Dayton, or Cincinnati house with owner financing in place is that it can help you achieve your initial asking price. Buyers on the open market are generally going to be limited in the sort of offers they are able and willing to make to you if you’re selling your house through traditional methods. If you switch to owner financing, you have the ability to set your own terms and conditions, making the whole transaction much more flexible and adaptable. This means that you can ask for a higher price for your house and still attract solid buyers who are willing to make monthly payments to you over time.
2. You Can Passively Earn a Monthly Income
Another great benefit of owner financing to consider is that it allows you to earn a passive monthly income from the sale of your house. Rather than your buyer paying monthly payments plus interest to a traditional mortgage lender, they are making those payments directly to you. Instead of a lump sum, you now have a passive income stream coming to you from your buyer. Steady monthly payments over time can be a huge boon for your long-term finances.
3. You Can Sell Faster through Owner Financing
As you probably know, selling a house can take months, if not years. When you offer Owner Financing, however, you can shorten this timeline and sell your house much faster. The reason why this happens is because owner financing makes it easier for your potential buyers to qualify for a mortgage. There are a multitude of life circumstances that might lead a great buyer to failing to qualify for a traditional mortgage, while they are still very much capable of making all of the monthly payments with interest (and likely even more). You open up the purchase of your home to these buyers, creating a much larger pool of them, which can help you sell your house faster.
4. Owner Financing Can Provide Tax Benefits
Did you know that owner financing can also provide tax benefits for homeowners? It’s true! When you act as the lender to your buyer, you can spread out the capital gains tax over the duration of the loan. Rather than paying a large lump sum of capital gains tax when you sell your house, you’re able to spread it out over time and lower your overall tax burden on the sale. On top of that, you can also deduct the interest that you earn from the sale of your house from your income taxes.
5. Direct Sale to Professional Homebuyers Can Help You Sell Your House With Owner Financing
If the idea of selling your home through owner financing sounds appealing to you, but you don’t want to worry about trying to thoroughly screen every possible buyer for your home in Middletown, Dayton, or Cincinnati, a direct sale to a local professional homebuyer might be your best path forward. Keynote Realtors is a reputable real estate company that also specializes in buying houses directly from homeowners. When you sell your house to Keynote Realtors, you can receive a fair cash offer for your house. We also are open to buying from you by utilizing owner financing. This means that you can enjoy the benefits of owner financing without having to do any additional work!
Selling your Middletown, Dayton, or Cincinnati house with owner financing can be a smart move for homeowners who are looking to sell their house quickly while also earning a steady income over time. With owner financing, you can set your own terms and conditions, attract a larger pool of buyers, and enjoy tax benefits. Additionally, a direct sale to Keynote Realtors can help you sell your house with owner financing, providing you with a fair cash offer and expert assistance throughout the process. Give us a call today to learn more about what we can offer you! (513) 506-2900