| Seller Financing to the Rescue |
The Nefer Note Network
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Seller Financing to the Rescue
The Problem
When it comes to selling real estate, one of the most difficult and frustrating situations for sellers is
when market conditions make it nearly impossible to sell at the desired price point. A high initial listing
price might be because the seller simply has an unrealistic idea of how their house stacks up against
the competition in the area, or because the owner needs to sell for a set minimum price in order to pay
off their loan against the property.
With traditional property sales methods, the only way to prevent the property from sitting on the market
indefinitely is to keep dropping the price. Unfortunately, this technique doesn't always work - especially if
the seller is unwilling to "discount" their house by much.
In areas flooded with homes for sale, reducing the asking price slightly will not bring the desired result.
In fact, it's common that the property will continue to sit on the market without offers, alongside the
multitude of other unsold properties with similarly reduced prices.
Anyone experienced in sales understands that making your product stand out from the crowd is a critical
technique for success. But if there's too much competition offering the same attributes, the only logical
way to attract the attention of serious buyers is to drop the price so that your property is a much better
value than the competition.
In cases where the seller is too inflexible with their asking price, this is not a practical solution. Without
an alternative strategy, the seller is forced to keep the house on the market for an extended period of
time with an unrealistic asking price, hoping for the right buyer to come along. And as you know, that
"Mr./Mrs. Right" might NEVER materialize!
The Seller Finance Solution
Property sellers who want to both obtain their desired price and close on the deal quickly should
consider seller financing. Seller financing is a powerful tool to remedy real estate situations that
otherwise look grim.
Many home sellers (and their real estate agents) do not see seller financing as a viable option. In
actuality, seller financing can bring new attention to the listing and invite a different group of potential
buyers - thereby opening up a unique, untapped market.
A large percentage of people throughout the country cannot get approved for bank funding to buy real
estate because of their credit situation. Many of these people are still in the market to buy a house,
however. The "credit-challenged" are often frustrated with the limitations of apartment living or being
renters; as a result, many are willing to pay a higher price just for a chance to get seller financing and
improve their quality of life.
A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it
into a bonafide seller's market. By using this type of creative financing, the seller could actually end up
getting more than the original asking price - without resorting to the questionable strategy of patiently
waiting for the "right buyer".
Seller finance can enable homeowners to receive a favorable selling price despite bad market
conditions. In addition, the real estate agent (if any) gets to close a deal and move on to other sales,
while a home buyer with poor credit is able to become a home owner. It's one of those rare situations
where everyone at the negotiating table gets what they want.
Paper Tigers
Many home sellers never consider seller financing because they don't understand the benefits. There
are also common misconceptions that it's much too complicated to attempt to orchestrate a seller
financed deal, or that there are no buyers willing to sign a private note.
Once a property seller takes the time to learn about the basic process, the advantages of offering
financing instead of a lower price to sell their property become very clear. Plus, a little education about
seller finance will make it apparent that drafting a secured private note is actually a very straightforward
process.
The bottom line is seller financing can enable a home owner to "have their cake and eat it too" - i.e., sell
at the desired price, close the deal quickly, and even receive additional income from interest payments
as well.
The Problem
When it comes to selling real estate, one of the most difficult and frustrating situations for sellers is
when market conditions make it nearly impossible to sell at the desired price point. A high initial listing
price might be because the seller simply has an unrealistic idea of how their house stacks up against
the competition in the area, or because the owner needs to sell for a set minimum price in order to pay
off their loan against the property.
With traditional property sales methods, the only way to prevent the property from sitting on the market
indefinitely is to keep dropping the price. Unfortunately, this technique doesn't always work - especially if
the seller is unwilling to "discount" their house by much.
In areas flooded with homes for sale, reducing the asking price slightly will not bring the desired result.
In fact, it's common that the property will continue to sit on the market without offers, alongside the
multitude of other unsold properties with similarly reduced prices.
Anyone experienced in sales understands that making your product stand out from the crowd is a critical
technique for success. But if there's too much competition offering the same attributes, the only logical
way to attract the attention of serious buyers is to drop the price so that your property is a much better
value than the competition.
In cases where the seller is too inflexible with their asking price, this is not a practical solution. Without
an alternative strategy, the seller is forced to keep the house on the market for an extended period of
time with an unrealistic asking price, hoping for the right buyer to come along. And as you know, that
"Mr./Mrs. Right" might NEVER materialize!
The Seller Finance Solution
Property sellers who want to both obtain their desired price and close on the deal quickly should
consider seller financing. Seller financing is a powerful tool to remedy real estate situations that
otherwise look grim.
Many home sellers (and their real estate agents) do not see seller financing as a viable option. In
actuality, seller financing can bring new attention to the listing and invite a different group of potential
buyers - thereby opening up a unique, untapped market.
A large percentage of people throughout the country cannot get approved for bank funding to buy real
estate because of their credit situation. Many of these people are still in the market to buy a house,
however. The "credit-challenged" are often frustrated with the limitations of apartment living or being
renters; as a result, many are willing to pay a higher price just for a chance to get seller financing and
improve their quality of life.
A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it
into a bonafide seller's market. By using this type of creative financing, the seller could actually end up
getting more than the original asking price - without resorting to the questionable strategy of patiently
waiting for the "right buyer".
Seller finance can enable homeowners to receive a favorable selling price despite bad market
conditions. In addition, the real estate agent (if any) gets to close a deal and move on to other sales,
while a home buyer with poor credit is able to become a home owner. It's one of those rare situations
where everyone at the negotiating table gets what they want.
Paper Tigers
Many home sellers never consider seller financing because they don't understand the benefits. There
are also common misconceptions that it's much too complicated to attempt to orchestrate a seller
financed deal, or that there are no buyers willing to sign a private note.
Once a property seller takes the time to learn about the basic process, the advantages of offering
financing instead of a lower price to sell their property become very clear. Plus, a little education about
seller finance will make it apparent that drafting a secured private note is actually a very straightforward
process.
The bottom line is seller financing can enable a home owner to "have their cake and eat it too" - i.e., sell
at the desired price, close the deal quickly, and even receive additional income from interest payments
as well.