The Various Means of Making a Fast Home Sale Property advertisements come with several ways like lease option and owner finance especially when the real estate market is soft. Propety owners understand that when there is a softening of real estate, they are also to understand that they have to consider concessions and be creative on how to sell since it has now become a buyer’s market rather than a seller’s market. Therefore, sellers are turning to some creative financing solutions in order to entice buyers, shorten listing times and create compensation for the tight credit market. Their first approach is a lease option which allows a potential buyer to lease or rent the property combined with an option to later buy the property. The option money paid by the potential buyer is generally cannot be refunded, however, a part of the lease payments can also be applied on the purchase price.
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Another means implemented by the seller to attract potential buyers of the property is to offer seller financing, and this means that the seller offers to finance the whole or a part of the amount purchased by the buyer. This method is also termed as owner financing or instalment sale, where the buyer makes the payment to the seller for the agreed period of time rather than getting a bank loan or a traditional mortgage loan.
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Considering what these methods offer, it is also advisable for the seller to check out the pros and cons from his or her point of view. Among the advantages of the seller financing methods are that the down payment is generally greater, real estate taxes, property insurance and upkeep belong to the buyer, and since the buyer already bought the property, they act like the owner already thus care is given on the property. In this method of purchase, another pro is with regards to the greater liquidity in payments done with private mortgage rather than lease payments, and this will entice more investors to pay for cash now than future payments. The seller earns interest in the amount being financed and this is a good advantage. Compared to the eviction process which is faster and easier, the con in this arrangement is that it will take time for the seller to foreclose once the buyer becomes delinquent with his or her payments. Another disadvantage of this arrangement is that the term of repayment can be longer than a sale based on instalment. Among the pros listed under the lease option are that the seller could gain some upside from the increase value of the property if the market appreciates and if the buyer will opt not to buy the property, and in case the buyer misses payments, the eviction process in this term is faster.