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Selling Your House on Terms in Middle Georgia
As the housing market in Middle Georgia starts to slow down, many house sellers are worried there is a downturn coming. Selling your house on terms can hedge any downturn you may be worried about.
In another article, I went on a tangent about most people wanting full retail price and all cash for a house that is not in full retail condition. Pricing a house is the same as pricing a car, market price is based on condition and popularity. Selling your house on terms adds value to the house when it includes the financing.
Most real estate agents are not aware (or scared) of this options, but for many house buyers, this is exactly what they are looking for.
“Selling your house on terms” means taking payments on the price of the house over time.
You get a better price for your house because you are offering financing with the house. The buyer does not have to go to the bank. Also, many people make more money selling a house on terms with interest. Selling on terms is why cars and houses are priced higher than the average person can afford. The better the financing, the more house they can afford. Let me explain why this is such a good deal with a chart to show each fix that comes with this way of selling.
| Problem to fix | Selling on terms fix |
| 1. Can’t Afford the Payments | 1. Sell with same monthly payments to cover your payments. |
| 2. House won’t sell | 2. Owner Financing brings more buyers and adds value. |
| 3. Upside down in house | 3. Selling with terms can pay down your mortgage until the balance is less than the house value. |
| 4. Selling a mobile Home and the banks won’t lend on it. | 4. Be the bank and make the money they would have at higher interest rates. |
Example; you sell your house, pay off the mortgage and net $15,000 to put in the bank. What are you going to do with that money? The banks don’t pay any interest while it sits in your account anymore. How about leaving your money IN the house ( as equity) and earn back the interest the bank charged you when YOU bought the house. Now you’re earning 5, 6, 7% (mobile home loans can go to 10-12%), AND if it doesn’t work out, take back the house and sell it again. The house is probably worth more now than when you bought it, so you get principle and interest. If the house is under water (you owe more than it will sell for), adding financing increases what the house will sell for (equal to or more than what you owe).
If you apply the buyer’s down payment to your current balance, this will help reduce or pay off the balance you owe above the sales price. Also, your buyer’s payments will be need to be higher than your payments to the bank. Pay it all to your mortgage each month and accelerate your mortgage down to zero faster. More of the buyer’s mortgage remaining balance and interest will come to you.
If you need a real estate agent to help you set this up, Please contact me.
If you have other thoughts on Making money with an unused house, Comment below.