Today's real estate problem has made it very difficult or nearly impossible for a seller to sell his home at the price he desires. Initially some list their home with an unrealistically high asking price. They don't take in to account the competition on the market or unfortunately they have to have a set price in order to pay off the homes existing loan.
Traditionally, a common sales method to get the home sold, was to keep dropping the price. Some home owners can't or are unwilling to do this because they have to have a certain price in order to pay the loan off. Most people hope to walk away with enough for a down payment for a new home.
If the market is saturated in sales, reducing the price slightly won't help you sell the house. It will just sit on the market with the countless other properties that have slightly reduced their prices and aren't selling.
An experienced real estate professional has to make the property stand out from the rest but even the most experienced professional has a problem when there is too much inventory. They think the only way to attract a serious buyer is to drastically drop the price, offering a better value than the competition, but if the seller is too inflexible, this is not going to work.
This leaves the house on the market in the hope that the "right" buyer may come along someday and fall in love with the house and pay the sellers price. Most times a fairy tale and "NOT!"
A Seller Finance Solution
A seller who wants to get their asking price and close the deal quickly can and should consider "seller financing" This powerful tool can sometimes be the answer to a real estate situation that might otherwise look bleak.
Typically many a home owner and real estate professional don't see seller financing as a viable solution. When actually, seller financing brings attention to their real estate with a new and different demographic of potential buyers. Yes, an untapped market!
A large percentage of the demographic cannot get approved through conventional financing. They want to buy a home, but because of the lack of credit history and/or apartment living, a bank will not approve them. A large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of this credit situation. These people are willing to pay the asking price or higher because they want to improve their quality of life.
A savvy seller and real estate agent that sees this opportunity, can turn their real estate into a sellers market! This type of creative financing can get the seller the asking price or more!
It becomes a situation where everyone involved gets what they want. The seller gets his asking price. The buyer, even with his unestablished credit ( that's not saying bad credit rater lack of, ) gets a home. If there is a real estate agent, they get to move on to more sales. It can be a rare opportunity that makes the sale.
Never Say Never
A lot of home owners who want to sell their homes don't see seller financing as a viable option but also don't understand the benefits. They think it's too complicated to orchestrate, when all they need is a real estate lawyer to iron out the details and make the deal.
Just think instead of lowering your asking price, a seller gets what he wants. All it takes is a little education about "seller finance" and it will become apparent that drafting a secured private note is actually a very straight forward process and to insure it's done right, involve a real estate lawyer to make the paperwork go smoothly.
Bottom line is a seller and buyer can "have their cake and eat it too!" The seller gets the desired price, the deal closes quickly, the buyer gets a new home, and the seller receives an additional source of income from the notes interest!
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