As innovation in technology and information sharing on throughout the internet continue to grow many homeowners are discovering new ways to sell their home. The truth is there have always been several different ways to sell a house however most sellers didn’t realize there were alternative options to selling through a real estate agent. In this post we will cover exactly how to sell a house by owner financing in IL , and what some of the advantages are for a seller who chooses this option
Step 1. Determine whether you own the house outright or still have a mortgage
In some states, if you have a mortgage you may not be able to offer owner financing (but you can in other states). So the first step is to determine whether you have a mortgage or not.
Step 2. Talk to a real estate attorney for help in crafting an agreement
With seller financing, you are essentially acting like a bank. The buyer will pay you a down payment and then pay you regular monthly payments until the house is paid off, and then it becomes their house. So make sure you talk to a real estate attorney to ensure that you are protected and obeying all federal, local, and state laws while also protecting yourself! (If you need the name of a good real estate attorney, get in touch with us and we can make an introduction.)
Step 3. Market your house online and offline
Once your paperwork is in place, you are ready to advertise that you have a house for sale. Be sure to let people know that you offer seller financing. There is no limit to how much marketing you should do – the more you can do, the better.
Step 4. Work with potential buyers
As your marketing captures the attention of potential buyers, work with them to show them through your house. When someone makes an offer on your house, negotiate the price and terms with them and find the middle ground that will ensure a win/win situation. Sign the papers when you and the buyer reach an agreement.
Step 5. Collect the down payment and hand over the keys
Once you agree on a price and have 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 transfers to the buyer.
Now that we have covered the basic steps you would take to sell your home with owner financing lets take a look at some of the advantages to seller financing a house. In a seller financed sale you are able to retain title which means if the buyer defaults on a payment you keep all down payments, all monthly payments, and get the house back. In addition you’ll be able to sell the property fast and as-is.