With all the changes to the economy that we’ve seen in recent years, many homeowners are discovering that there are new ways to sell their homes that weren’t available before.
Yes! You heard correct.
There are other ways and strategies to sell your property to maximize earning potential and today you will learn owner finance transactions.
No Agents Involved
You no longer have to sell through an agent – you can sell on your own or you can even accept seller financing.
- No realtors involved
- No hidden fees
- No dealing with unqualified buyers
- No strangers walking through your house
If you’re wondering how to sell a house by owner financing in Florida, keep reading this blog post and we’ll walk you step-by-step through the process…
Below is a owner finance guide graphic that will give you a basic outline
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 do have a mortgage then you will have to start by contacting your bank or mortgage holder and have them send you a pay-off statement.
Once you have the pay-off statement save it for your records because you will need it for the transaction.
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.
There are many ways to advertise your house but we always recommend learning popular advertisement platforms.
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.
It is all about numbers so the more people see your ad the better exposure it will have to a potential buyer.
Step 4. Work with potential buyers
As your marketing captures the attention of potential buyers, work with all leads and filter out promising prospects.
No one likes to deal with strangers walking through their house and judging so only work with people who are serious about buying 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.
If there is an agreement the next step will be to get the agreement on paper so have your contract ready in hand to have the buyer fill out.
Sign the papers when you and the buyer reach an agreement and make sure everyone gets copies of important documents.
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.
Of course have the transaction recorded by the proper authorities and pay any fees to the county or closing office of your choice.
Back in the day when people were transacting real estate deals they were signing agreements on their kitchen table.
But nowadays it is highly recommended that all documentations and real estate transactions be held with either an attorney or closing company.
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.
This is just a high-level overview of the steps in order to complete a real estate owner finance deal.
If you want to take the next step and sell your house using this type of transaction please fill in some information below and we will contact you within minutes to discuss how we may be able to help you further.