Reasons Why You Might Consider Selling With Owner Financing in San Antonio

Reasons Why You Might Consider Selling With Owner Financing in San Antonio

When it comes time to sell your house, there are a lot of ways to go about it. You can list it with a real estate agent, put up a sign in the yard, and wait for the offers to come in. Or you could consider selling with owner financing


Owner financing is a great option for sellers who want to get the most out of their house and are willing to sell in a non-traditional manner. If you’re thinking about selling your house this way, here are the top 3 reasons why you should consider it. 



Selling With Owner Financing Can Expand Your Pool of Potential Buyers

The traditional way of selling a house is to list it with a real estate agent and wait for buyers to come to you. But this can often take weeks or even months. And if your house is in need of repairs, it could be even longer. 


With owner financing, you can bypass all of that and sell your house directly to the buyer without involving a bank or traditional lender. This means that you can sell your house to anyone who has the cash for the down payment, regardless of their credit score or employment history.



This actually makes your buyer pool bigger because traditional buyers can still put in an offer but now you are opening the door for buyers who are specifically looking for creative financing directly from the owner.



Possibly Sell Your House For More Than Market Value

When you sell your house the traditional way, you are at the mercy of the current housing market. If prices are low, you might not be able to get the price you want for your house. But with owner financing, you can set your own terms and price. This means that if the housing market is down but you still need to sell your house, you can offer owner financing to make up the difference.

You can also use owner financing as a way to negotiate a higher sales price. For example, if your asking price is $200,000 but the buyer only has $150,000, you could offer to finance the remaining $50,000 with an interest rate that is still lower than what they could get from a bank. With interest rates rising rapidly, owner financing will become more common and even more lucrative for sellers.

Create An Income Stream By Selling With Owner Financing

One of the best things about selling with owner financing is that you can create an ongoing income stream from your house. Once the house is sold, you become the bank and the buyer makes monthly payments to you instead of a bank. This gives you a chance to earn money from your house every month, which can be used to supplement your income or help with expenses. And if you sell the house for more than it’s worth, you could potentially make a lot of money over time.


When you act as the bank, you collect amortized interest. think about this…a $150,000 loan amortized over 30 years with a 6% interest rate collects $173,757 in interest in addition to the $150,000 principle. That means you collect a total of $323,757 over the life of the loan. How about that as an income stream and investment!


A Word Of Caution When Selling With Owner Financing

Before you decide to sell your house with owner financing, there are a few things you need to be aware of. First, make sure you understand the legal aspects of selling with owner financing. There are some specific laws that apply and you need to make sure you are in compliance.


You also need to be aware of the risks involved. When you become the bank, you are taking on all of the risks if the buyer defaults on the loan. This means that you could end up having to foreclose on the house and evict the buyer, which can be a long and costly process.


If you don’t own the house free and clear, owner financing might still be an option for you but you need to understand the way a wraparound mortgage works and get competent legal advice throughout the process.


How Capstone Homebuyers Can Help

If you want to sell your house fast and for cash, owner financing might not be the best option for you. But if you are willing to take on a little more risk and wait for the right buyer, owner financing can be a great way to get the most out of your house.


At Capstone Homebuyers, we are always looking for houses that are being sold with owner financing. We will work with you to structure the deal in a way that is beneficial for both parties. We are a qualified buyer and ready to close quickly. Give us a call today to learn more about how we can help you sell your house with owner financing.