Did you know that you, as a homeowner, have many options when it comes to selling your house? With the availability of information on the internet, you no longer have to sell through an agent. In fact, you can sell your house on your own or even accept what is called seller financing. It’s either called owner financing or seller financing. They are one and the same.
If you’re wondering how to seller finance a home in NC , keep reading this blog post and we’ll walk you step-by-step through the process…
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. If you own your home free-and-clear, owner financing might be a great option.
Step 2. Talk to a real estate attorney for help in crafting an agreement
With seller financing, you are essentially acting like a bank. You will receive monthly payments instead of receiving a lump sum like in a traditional home sale. The buyer will pay you a down payment and then will pay you regular monthly payments until the house is paid off. The terms of the seller financing agreement can be negotiated between you and the buyer in a way that works for both parties. 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, but you probably don’t have to
Now it’s time to market that your house is for sale. Be sure to let people know that you are offering seller financing. There is no limit to how much marketing you should do – the more you can do, the better. With that said, you probably don’t have to do much marketing at all. Somebody who is looking to buy a house will probably find you, and they will most certainly want to make you a good offer if you are willing to do a seller financing deal.
Step 4. Work with potential buyers
Once potential buyers start to pour in, start showing your house. When an offer is on the table, negotiate the price and terms with the buyer. Find that middle ground that both parties can be happy with. Once everybody is happy with what they are getting, sign the papers and ink the deal.
Step 5. Collect the down payment and hand over the keys
After the documents have been signed, stick out your hand and grab that down payment. They buyer will grab the keys. Then sit down and relax and wait for those checks to start arriving in the mailbox every month. If you are currently a landlord looking to get out of managing a rental property, this might be the perfect option for you. How would it sound to be able to collect monthly checks without having to deal with tenants or repairs?