Due to the changes in the economy in recent years, lots of homeowners are finding out that there are fresh methods to sell their homes that weren’t around before. Such as 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 KY , keep reading this blog post and we’ll walk you through the process step-by-step.
Step 1. Determine whether you own the house outright or still have a mortgage
This is vital. Because 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, then you can move on to the next step in this process.
Step 2. Talk to a real estate attorney that way you can get help in crafting an agreement.
With seller financing, it’s kind of like being a bank. The buyer gives you some money upfront, and then they make monthly payments until they’ve paid for the house. Once they finish paying for the home, the house becomes theirs. 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.)
Step 3. Market your house online and offline
Once your paperwork is in place, and you know that you have the legal protection you need, it’s time to get ready to advertise This is one of the most crucial points of selling a home. It’s time to let people know that you have a house for sale. Be sure to let them know that you offer seller financing. There is no limit to how much marketing you could or should do – the more you can do, the better.
Step 4. Work with potential buyers
When your marketing gets the interest of possible buyers, team up with them to guide them around your house. Make plans to have an open house of sorts. When someone makes an offer on your house, be flexible and negotiate the price and terms with them so you can find the middle ground that will ensure a win/win situation for both parties. Now you can move on to signing the papers after you and the buyer have reached an agreement.
Step 5. Collect the down payment and hand over the keys
Once you agree on a price and have signed the papers, collect the down payment and hand over the keys. Congratulations you’ve basically become a landlord and in most situations, you will continue to own the house and collect payments until the house is paid off, then ownership transfers to the buyer. Sometimes this is the only way for some people to get to see their dreams fulfilled in being a homeowner.