If you’re thinking of selling your house using owner financing, check out this blog post to understand owner financing in Texas…
You have many options when selling your house. You could list it on the market and see what sellers will pay. You could work with a real estate buying company and get a fair all-cash offer, or you can owner finance and “become the bank”, selling your house to a buyer and collecting payments over time… but make sure you review these points for owner financing in Texas.
Owner financing is a valuable but under-used strategy to sell your house. It’s where you offer terms to the buyer to pay you regular payments (just like a bank with a mortgage). Here are some keys for owner financing in Texas…
Don’t Only Focus Only On Sales Price
Price is just one component of the process. You’ll want to find a price that is fair for both of you but there are other factors (which could benefit you more than the asking price).
Consider the Timetable
Think about the how quickly you want to be paid. Banks might offer 5, 10, 15, 20, and 25-year mortgages. Do you want to accept payments over that period of time? Your buyer will also want to find a timeline that works for them: they might want to minimize the payment amount by financing over a 30 year period!
Negotiate Financing Terms
The financing terms are one of the most important parts of the transaction. The terms might include how much down payment you want; if there’s an early repayment penalty or a late payment penalty, and most important – how much interest you charge. But make sure you that the buyers can easily afford the payment amount.
Even if you enter into an agreement with someone who is completely trustworthy, things could still go wrong – so make sure you protect yourself. You do this by securing the real estate note with the property you are selling with a mortgage, deed of trust or land contract. And make sure that the mortgage or other security instrument requires that the buyer maintains hazard (fire) insurance and names you as an additional loss payee.
Hire a competent Real Estate Attorney
No matter how you ultimately structure your owner financing deal, make sure you work closely with an attorney who can help you. A poorly worded agreement could end up hurting you; an attorney will ensure that that doesn’t happen.
If you have already sold a property with owner financing and are interested in selling the owner financing, fill out this form
I'd like BEST PRICE for ALL or PART of My Note
or call us at 772-232-2383. You can be sure that we help you in any way that we can and give you a fair, fast offer.
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