We Buy Houses In California. We are homebuyers in CA and if you are thinking of using owner financing to sell your property in California, make sure you read this blog post to learn the 6 owner financing tips for sellers and selling strategies in California…
There are many ways to sell your home. You can list it on the market and see what the sellers are going to pay. You might deal with a real estate buying company (like what we do here at Premier Property Buyers) and get a fair all-cash offer, or you can find owner financing and “be the bank” to sell your house to a buyer and receive payments over time.
Owner financing is a viable but underused technique for selling your home. It is here that you give the buyer terms for paying you regular payments (just like a mortgage). Here are 6 owner financing tips for sellers in California…
Owner Financing Tip #1: Don’t Focus Only On Price When Selling Your House In California
Price is a single component. You’re going to want to find a fair price for both of you, of course, but there are other factors as well (which could help you more than the price you’re asking).
Owner Financing Tip #2: Timeline In CA
Think of the timeframe in which you want to be paid. Banks could be offering mortgages of 5, 10, 15, 20 and 25 years. Want to accept payments throughout that time? Your buyer may also want to consider a timetable that works for them: they may not want to pay you down the road for 25 years!
Owner Financing Tip #3: Terms Of The Contract In California
The terms of the contract are one of the transaction’s most significant and often ignored parts. The terms can include aspects such as how much down payment you want whether there is a penalty for early repayment or a late payment penalty, and most importantly, how much interest you charge.
Owner Financing Tip #4: Protect Yourself When Selling Your CA Home
Even if you enter into a contract with someone who is totally trustworthy, things might still go wrong – just make sure you’re safe. For example, make sure you have insurance and the other person does the same for the different circumstances that may arise. And consider adding a clause that preserves property ownership in your name until the property is paid out in full.
Owner Financing Tip #5: Build Contingencies In California
Much of your owner financing agreement will be designed around the “ideal scenario”-what will happen if everything goes perfectly. But sometimes events happen outside of our control, and when the unexpected occurs, creating contingencies helps you to make better choices. What if, for example, the buyer doesn’t want the home anymore, or can pay no longer, or wants to pay early, or wants to use the home in a different way than expected? Or what if your circumstances change and you don’t want to sell anymore, or you need to sell more quickly? Agree with the buyer in advance on the contingencies and the agreement would be that much easier.
Owner Financing Tip #6: Get An Attorney In CA
No matter how your owner financing agreement is ultimately structured, make sure you work closely with an attorney who can support you. A badly worded agreement could potentially damage you; an attorney should help.
Sell My House In California
Selling through owner financing needs a lot of thinking. If you are considering your options to sell your house in California, consider selling directly to Premier Property Buyers. If you don’t want to go through the hassle and headache of selling to the market then we might be able to help. We are your local California home buyers who offer cash for houses in CA and we can help you.