Seller Financing - 7 Pros and 5 Avoidable Pitfalls Sellers Must Know

Seller Financing - 7 Pros and 5 Avoidable Pitfalls Sellers Must Know

Seller financing is an often misunderstood method in which a seller can increase their capital return on investment.  Whether a residential property has an existing mortgage or is owned free and clear; hands down, properly structured seller financed transactions are becoming a boon in our local King, Pierce, Snohomish and Thurston County real estate markets.

 When properly structured, seller financed transactions offer high yield and minimal risk to the seller. Certain rules apply and it is important that either seller or buyer engage a Professional Real Estate Broker highly experienced in seller financed transactions, before moving forward to be sure you are covered.

7 Important Pros You Should Know

1. Over-leveraged sellers can sell their home right now, for what is owed on it or possibly more, and receive immediate debt relief.

2. Seller is relieved of monthly responsibility for payment, interest, taxes, insurance, upkeep, maintenance and repair costs (unlike renting) You are completely off the hook if the furnace blows

3. Seller can choose from a variety of seller financing options that we customize to your needs

4. Seller can receive monthly payments via direct deposit to an account of their choice

5. Certain scenarios will allow seller to retain inspection rights to the property as much as twice yearly

6. Seller’s debt to income ratio changes favorably under any of our seller financing scenarios

7. Seller is relieved of monthly costs and payments freeing up cash assets

 "A  Highly Experienced, Licensed Real Estate Broker will be able to help you secure a qualified buyer for your property.  Meg O Harrison has the right resources, attorneys, contracts, addendums, payment collection agencies, title, escrow, inspectors and other key components in place to assist you in professionally streamlining a great transaction that will pay you dividends over the short and/or long term. "

5 Common Pitfalls to Avoid at All Costs:

1. Never work directly with a Buyer (especially if your property is over-leveraged; involves special care)

2. Never sign away rights to your property to a shill promising to ‘help’ you sell (lease-option scam)

3. Never work with an unlicensed person or allow them to market your property in any manner

4. Never skip the credit and background check for any potential Buyer no matter how nice they seem

5. Never attempt to close a sale of this type unless you have a real estate license or are a real estate attorney yourself and are highly experienced in the specifics of this type of transaction. 

New Laws that have been in place since January of 2014 make it essential that you engage the services of a highly experienced, licensed Real Estate Broker who will secure a qualified buyer for your property. 

"Meg O Harrison has the right resources, attorneys, contracts, addendums, payment collection agencies, credit and background investigation services, title, escrow, inspectors and other key components in place to assist you in professionally streamlining a great transaction that will pay you dividends over the short and/or long term."

Intensely Focused On YOUR Real Estate Transaction - Start to Finish!