Owner Financing For Sellers: 6 Tips

There are many ways to sell your Florida house.

  • You could list it on the market and see what sellers will pay.
  • You could work with a real estate buying company like us and get a fast, fair ALL-CASH offer. Check out our website >>> We Buy Florida Houses Fast!
  • You could consider owner financing and “be the bank” and collect payments over time.

If you’re thinking about selling your house, owner financing is a valuable but under-used strategy.

But, What Is Owner Financing?

Owner financing: a transaction in which a property’s seller finances the purchase directly with the person or entity buying it, either in whole or in part. This type of arrangement can be advantageous for both sellers and buyers because it eliminates the costs of a bank intermediary.

If you would like to know more owner financing, take a look at the article below and our 6 tips for selling a house owner financing in Miami.

Tip #1


Price is just one component.

Of course, finding a price that is fair for both and the buyer is important.

But there are other considerations as well, which could benefit you more than a high selling price.

Tip #2


The timeline is critically important! Banks might offer 5, 10, 15, 20, and 25-year mortgages.

Do you want to accept payments for that long?

Your buyer will have a timeline in mind too! They might not want to spend the next 20 years paying you!

Tip #3


Don’t forget the terms of the deal!

It surprising how often the terms are overlooked during a sale.

Terms can include: the down payment, early repayment penalties, late payment penalties, and how much interest you charge.

Tip #4

Protect Yourself

Even if you’ve done your reseach and you trust who your working with – things can still go wrong!

So make sure you protect yourself.

For instance, both you and the buyer should be insured for any damages, floods, fires and so on.

Consider including a clause that ensures you retain ownership of the house until it’s fully paid off.

Tip #5


Most of your owner financing agreement will be built around the “ideal plan”.

But no matter how well we plan, sometimes unexpected things happen.

That’s why it’s always a good idea to have a backup plan in place.

For instance, you should plan ahead just in case the buyer no longer wants the house, or can longer pay, or wants to pay early, or wants to use the house in an unconventional way.

Tip #6


Law is tricky. Subtle errors in wording can be the difference between winning a court case and – well, losing one.

No matter how you structure your owner financing deal, poor wording and unclear clauses can lead to issues down the line that put you at an obvious disadvantage.

To avoid this and possible risks with your agreement, make sure you work closely with an attorney.

Finally, expanding on Tip #5, you need to have contingencies in place just in case your circumstances change. What happens if you no longer want to sell? What happens if you suddenly need the cash faster?

Agree to any necessary contingencies with your buyer ahead of time and your arrangement will go much smoother.

Are you thinking about selling your house?

Maybe you’re still not sure and would like to explore all of your options. Either way, at Sunshine State Buyers, we can help! Check out our website >>> We Buy Florida Houses Fast!

If you don’t want to go through the hassle and headache of selling on the open market, consider giving us a call on (305) 916-3328. A member of our team would love to speak with you.
Or, click here to fill out our short form. We’ll get back to you as soon as possible with a fast, fair ALL-CASH offer on your home.

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David Veras

David Veras was born in Hialeah, Florida and has been involved in Real Estate since February 2019.

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