Benefits of Selling with Owner Financing

Selling with owner financing in Lincoln, NE

When it comes to selling your home you may have never consider selling with owner financing, but there are many benefits that selling with owner financing can give you over the traditional all cash type of sale. Many of these benefits are overlooked when selling a home, mostly because this is not the traditional way of doing business. Banks and real estate agents don’t get a piece of the pie, and this may be the main reason why selling with owner financing is not even on most peoples radar. However, despite not being a traditional way of selling your property, taking control of the process and making more money than selling with a traditional cash sale right here in Lincoln, NE may be the best way to sell a property that you have never thought of. Below I will go into more detail surrounding the pros and cons of selling with owner financing.

Owner financing benefits

When selling with owner financing you actually sell your home, meaning the title transfers to another person. You have sold your property and don’t have to worry about the many concerns that home owners and landlords face. If you have your home paid off and want a monthly income without having to worry about renter headaches, owner financing may be for you. Some key benefits of selling with owner financing include:

• The home sale is complete, ownership has transferred
• You will become the bank, this means collecting a monthly payment without having to worry about being a landlord or any of the headaches associated with normal home ownership
  • This may mean earning interest on the loan to the seller
• You can move out and move on with life, your ‘loan’ to the new owner will be secured by the home itself. Worst case scenario, you would take the home back and be able to sell it once again, as banks do
• You will make more money selling with owner financing than selling as a traditional all cash sale
  • If you add up the money made taking monthly payments, plus the final cash out sale, you will come out much further ahead when compared to an all cash sale
• If you don’t need a lump sum of cash, the monthly cash flow can be very nice
• You don’t have to deal with banks or realtors, this can be a huge bonus to many people who don’t want to involve these 3rd parties in the sale of their home
• No realtor commissions or fees
• You’re in control and can negotiate the terms of the sale with the buyer, whatever is agreed upon is the deal

Traditional sale benefits

A traditional sale means selling For Sale By Owner (FSBO) or with a realtor who will list your home on the MLS. Going this route you will get a large check right away, and sometimes that check is necessary to move into a new home, or finance a new venture in life, such as purchasing an RV or going on a month long trip to Europe. Whatever your stage in life, it may just make more sense for you to sell your home for all cash with a realtor or FSBO and forego the monthly cash-flow you would get by selling with Owner Financing. Below I have some key benefits of selling the traditional way.

• You get a large check at the closing table
  • This may be necessary to move on in your life, even if you have to sacrifice some of your earning potential selling this way
• You say go and let the realtor do the work
  • Once they have the go-ahead, you don’t have to do much besides deal with them, they do all the leg work
• No concerns with possible worst case scenarios
  • This means once you move out and the sale is final, you won’t have to worry about a new owner who is paying you monthly loosing their job or not keeping their promises to you
• It’s the ‘accepted’ way to sell a house. This is how things are done traditionally and you don’t have to think too much outside the box to sell this way
• It may be less stressful to let others manage the sale and closing of your property

Selling with Owner financing Conclusion

If you’re selling with owner financing right here in Lincoln, NE or anywhere in this beautiful country, it is necessary to weigh the pros and cons of the choice you have in front of you. By thinking outside the box when it comes to selling your home, you can make more money at the end of the day, be in more control and have a great experience selling your home. If you want the comfort and safety of selling with a realtor or fsbo for all cash and know the downsides of this approach, this may be your ticket to a new bigger home, or to cushion your bank account. Whatever your motivation or outlook on life, it is important to weigh the options.

Here at New Light Homes in Lincoln, NE we buy homes with owner financing. This strategy make perfect sense to the sellers we work with, and they see the benefits of this method right up front. If you wish to know more about how you can benefit from selling with owner financing here in Lincoln, feel free to contact us with any questions or comments you may have, we’d love to hear from you.