Are you thinking about selling your house? If you find yourself wondering what your options are and end up looking online for ideas, then you’ve probably stumbled across “Seller Financing” – also known as Owner Financing. Owner Financing is a relatively unheard of but very practical way of selling a property in Miami, Florida. In this short article, we take a brief look at why Owner Financing can be a smart decision in Miami.
So, How Does Owner Financing Work?
Traditionally within a home-selling transaction, it is unlikely that the buyer will have enough money to buy the property outright. Therefore, buyers will typically approach a bank or lending agency and apply for a mortgage. They will pay a reasonably large deposit upfront and then continue with monthly mortgage payments until the borrowed amount is paid off in full (interest included).
Almost everyone is familiar with this method of buying and selling – it is a well-known route to take. But, there is another way that you and the people around you might not know much about – Owner Financing.
Owner Financing is very much like the conventional bank-loan-mortgage arrangement, except it’s the seller of the house that acts as a bank would. The buyer will make a down payment directly to you (the seller), and then make regular monthly payments to YOU until the whole balance is paid off. After this, ownerships of the house transfers to the buyer.
Many Homeowners Are Wondering, Is Owner Financing A Good Idea For The Seller In Miami?
Most sellers who come across Owner Financing feel that it is the right decision for them. Below are some of the reasons sellers throughout Miami like Owner Financing.
- Owner Financing allows the seller to market their property to more potential buyers – buyers who have the money and a stable job but may not get approval for a traditional bank loan.
- Regular monthly cash flow from financing payments.
- The law works in the seller’s favor if, for any reason, the buyer suddenly stops paying.
- The seller retains ownership of the house until it is FULLY paid off.
- There is no property management.
Just by taking a brief look at all these reasons, it seems pretty clear why sellers are opting for Owner Financing in Miami. What’s not to love? You get security through constate cash flow and protection if anything were to happen. Plus, you’re still able to sell your Florida house. That’s a recipe for success. Whether you’re looking to sell your primary residence, or you’re a landlord hoping to sell on some of your rental properties, Owner Financing might be the option for you.
If you’d prefer regular income or if you would simply like to market your house to more buyers, then take a closer look at Owner Financing. If you’re serious about selling your home, you should actively explore all of your options, Owner Financing included. There can still be times when Owner Financing may not be the best path to take.