The Key Elements of Great Sales


A Choice Between Lease Option or Seller Financing to Sell Your House Fast Property advertisements come with several ways like lease option and owner finance especially when the real estate market is soft. Propety owners understand that when there is a softening of real estate, they are also to understand that they have to consider concessions and be creative on how to sell since it has now become a buyer’s market rather than a seller’s market. Therefore, sellers are turning to some creative financing solutions in order to entice buyers, shorten listing times and create compensation for the tight credit market. One option for the seller is to offer a lease option wherein the potential buyer can lease or rent the property, then has the option to purchase it later on if desired. Generally, the option money paid by the buyer is non-refundable, but a portion of the rental payment can be also applied towards the buying price.
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Another means implemented by the seller to attract potential buyers of the property is to offer seller financing, and this means that the seller offers to finance the whole or a part of the amount purchased by the buyer. This method is also termed as owner financing or instalment sale, where the buyer makes the payment to the seller for the agreed period of time rather than getting a bank loan or a traditional mortgage loan.
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It is also good for the seller to look at the advantages and disadvantages of these offered options. Among the advantages of the seller financing methods are that the down payment is generally greater, real estate taxes, property insurance and upkeep belong to the buyer, and since the buyer already bought the property, they act like the owner already thus care is given on the property. In this method of purchase, another pro is with regards to the greater liquidity in payments done with private mortgage rather than lease payments, and this will entice more investors to pay for cash now than future payments. An obvious positive advantage of this financing is that the seller earns interest on the amount being financed. One big con in this arrangement is that if the buyer becomes delinquent on payments, the seller will have difficulty to foreclose as compared to the eviction process. The next negative side of this method is that the term or time of repayment is longer than on an instalment sale. Among the pros listed under the lease option are that the seller could gain some upside from the increase value of the property if the market appreciates and if the buyer will opt not to buy the property, and in case the buyer misses payments, the eviction process in this term is faster.

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