With all of the changes to the global and United States economy that we’ve seen in recent years, many homeowners are discovering that there are new ways to sell their personal and investment properties that can help them net more total profit. You no longer have to sell through an agent – you can sell on your own or you can even accept seller financing. If you’re wondering how to sell a house by owner financing in TN , keep reading this blog post and we’ll walk you step-by-step through the process…
Step 1. Determine whether you own the house outright or still have a mortgage
In some states, if you have a mortgage you may not be able to offer owner financing (but you can in other states). So the first step is to determine whether you have a mortgage or not.
Step 2. Talk to a real estate attorney for help in crafting an agreement
With seller financing, you are essentially acting as a bank. The buyer will pay a down payment to you and then pay you regular monthly payments until the house is totally paid off. This strategy is often a win-win solution for both you and the buyer when structured properly, as the purchase price can be somewhat greater and there are no financing contingencies to navigate during the sale. Keep in mind that each state has different guidelines, so make sure you talk to a real estate attorney to ensure that you are protected and obeying all federal, local, and state laws while also protecting yourself! (If you need the name of a good real estate attorney, get in touch with us and we can make an introduction for you.)
Step 3. Market your house online and offline
Once your paperwork is in place, you are ready to advertise that you have a house for sale. Make sure you let people know that you’re offering seller financing. There is no limit to how much marketing you should do – the more you can do, the better result you’ll most likely see.
Step 4. Work with potential buyers
As your marketing will capture the attention of potential buyers, work with them to show them your property. When someone makes an offer on your house, negotiate the price and terms and find a middle ground that will produce a win/win situation for both you and the buyer. Sign the papers when you and the buyer reach an agreement.
Step 5. Collect the down payment and hand over the keys
Once you agree on a price and have signed the papers, you will go to the closing table on the closing date and collect the down payment from the buyer and hand over the keys. In most situations, the deed transfers to the buyer upon closing and your attorney files a note at the courthouse that guarantees you are paid regular payments and would have to be paid in full should the buyer ever decide to sell the property before your agreement is complete.