Carrying a Mortgage Note Helps Sell Homes in a Buyers Market

The post-subprime age is an extreme buyers market. There are plenty of homes, but too few people to purchase them. Unlike other buyers’ markets, however, this one has been created by regulation as much as it has been by buyer inclinations. There are plenty of folks who want homes, but new lending restrictions make it difficult for them to qualify for the necessary loans.

As more buyers learn about seller financing they will often take the initiative in asking about it. If you’re selling a home or other piece of property you should consider your answer ahead of time. Do you want a direct income supplement for your own mortgage? Do you want to retain title through the payment period in exchange for offering financing? Do you have plans for worst case scenarios?

Your answer should be detailed, accurate within the law (talk to a lawyer before employing any seller-held financing) and most importantly communicated to everyone involved in selling your house. Most real estate agents will not even ask of you’re interested in seller financing. Let them know your position – but don’t let them make any promises on your behalf. It’s your option, so you need to closely supervise the deal.

If you carry some or part of the loan you’ll be able to attract a wider range of buyers, but planning seller financing options ahead of time also gives you the upper hand when the buyer asks about it. When someone comes in looking for your help they’re probably a bit more sophisticated than the average buyer. That may entail some involved negotiations, so you’ll need a well-defined position before you come to the table.

If you’re educated and prepared, seller financing can be an excellent tool to help you sell your property. Review the options and keep in mind that you can always sell your mortgage note, land contract, trust deed or other instrument in case the need for a lump payment arises. If this need applies to you, get a mortgage note quote and see what the potential rewards might be.