Any time you’re trying to sell a house, it can be a daunting task, especially when the market is unpredictable and at times quite volatile. Many homeowners put their houses on the market, only to find that months later, they have not received any reasonable offers. This is where the concept of owner financing comes in. Owner financing is a type of real estate transaction in which the seller acts as the lender, allowing the buyer to pay a down payment, and then make monthly payments to the seller over a period of time. In this blog post, we will discuss 5 things you need to know about selling your Dallas / Fort Worth house with owner financing.
1. Owner Financing Can Help You Achieve Your Asking Price
Opting for owner financing when selling your property in Dallas / Fort Worth can be advantageous as it increases the likelihood of actually getting the selling price that you want. Unlike traditional selling methods where offers are typically dictated by buyers, owner financing empowers you to establish your own terms. This flexibility enables you to set a higher selling price while still appealing to potential buyers open to making monthly payments.
2. You Can Earn a Monthly Income
Another benefit of choosing this type of financing is that you can earn a monthly income from the sale of your house. When you act as the lender, the buyer makes monthly payments to you with interest similar to what would happen if they were getting a loan through a bank. This means that you can earn a steady income and you’re still the owner of the home during that period, so if the buyer stops making payments or falls into a hardship and breaches the agreement, the home still belongs to you. This can be very beneficial for homeowners who are looking for a source of passive income.
3. Owner Financing Can Help You Sell Your House Faster
When you’re in the process of selling your property, it can take months to find the right buyer and to go through the whole process, sometimes years. However, with owner financing, you can sell your house faster. This is because owner financing makes it easier for buyers to qualify for a mortgage because you’re capturing buyers that might not currently be able to qualify for a loan through a mortgage broker or bank. Buyers who may not qualify for a traditional mortgage may still be able to purchase your house when you’re the one financing the purchase. This means that you can attract a larger pool of buyers, which can help you sell your house faster.
4. Owner Financing Can Provide Tax Benefits
Choosing to finance the sale of your home this way can also provide tax benefits for homeowners. When you act as the lender, you can spread out the capital gains tax over the life of the loan. This means that you can avoid paying a large lump sum of capital gains tax when you sell your house. Additionally, you can also deduct the interest that you earn from the sale of your house from your income taxes. We’re certainly no tax experts, so we’d recommend that you reach out to your tax preparer or accountant to understand the benefits of this option and how to do all of this correctly and in a way that’s most beneficial to your specific situation.
5. Direct Sale to Madison Lea Homes Can Help You Sell Your House With Owner Financing
If you are interested in selling your Dallas / Fort Worth house, a direct sale to Madison Lea Homes can help. Madison Lea Homes is a reputable real estate company that specializes in buying houses directly from homeowners. When you sell your house to Madison Lea Homes, you can receive a fair cash offer for your house, and it’s possible for us to close in as little as seven days. We buy houses in any condition and won’t require you to make any repairs. We also charge no commissions, fees, or closing costs. So you can literally save thousands by selling to a we buy houses company like us.
Selling your Dallas / Fort Worth house without going through the process of financing it yourself, but instead selling it to a cash buyer like Madison Lea Homes can be a smart move for homeowners who are looking to sell their house fast and without all the hassle. If you’re ready to get serious about selling your property, reach out today. Give us a call today to learn more about what we can offer you! 972-945-7299