Looking into seller financing can be scary because there are some pitfalls and risk involved with them. While it can be risky, there are also many benefits to seller financing for both parties involved. Here are some of the pros of seller financing for both the seller and the buyer.
Seller:
- Competitive: Having your property up for seller financing options can make it stand out on the market. It can both be a standout feature, as well as a desirable thing for potential buyers.
- As Is Home: If you are selling your home through seller financing, then you might not need to go through all the trouble of making your home perfect for the market. Going straight from a seller to the buyer may mean you do not need to gussy up the home as much.
- Payments: If the buyer stops paying off the home and disappears then the home will return to you. Rather than the foreclosure going to the bank, the home remains yours.
Buyer:
- No Mortgage: If a bank does not approve a buyer for a mortgage, they may still be able to get seller financing. This can be a good option for people who are usually turned down by traditional lending.
- Fast: Less parties involved means less time taken. Once you enter an agreement with the seller there is less paperwork involved and time waiting when compared to a traditional bank system.
While there are some cons to seller financing it is also important to look at the pros, and how it can benefit both parties.
