Offering seller financing in Baltimore, Maryland is an excellent way to sell your house for the price you want, all while making money off of the interest. Learn more in this post!
Utilizing seller financing or a rent-to-own agreement is an excellent way for investors and homeowners who want to sell a house for the price they want without the capital gains hit. Even though the home will not transfer ownership until the end of the term, it can be a way for sellers to increase what you’re making each month, while almost guaranteeing a sale on a pre-determined date in the future. Most people don’t even know they can sell their home with seller financing in Baltimore so I will explain the benefits for the owner in this article. Also, if you don’t need the entirety of your proceeds upfront, selling your house in Baltimore with a rent to own agreement may be another great option for you!
When you use a rent-to-own agreement or offer owner financing to buyers, you will open the door for many people to buy your house who may not have been able to before. More potential buyers means that you will be able to get a contract signed much more quickly. You will be able to find potential buyers who are eager and determined to follow through on their end of the transaction. Be sure to do your homework on your prospective borrower. If a traditional bank had turned them down in the part, there is likely a reason why.
Create Consistent Income
By offering owner financing, you’ll be able to bring in a consistent income each month, with a lower risk of a late or missed payment. Your tenants are invested in the property and are much less likely to default on their payments when they know they are in it to eventually own the home outright. In most cases, you aren’t going to have to worry about any vacancy during the life up the agreement. A savvy investor may be able to facilitate a few of these agreements on multiple properties, thus producing a very strong, somewhat passive, income for themselves.
Get The Price You Want
People who are taking advantage of your owner financing offer are going to have less room to negotiate for a lower price. In many cases, they are eager to buy, especially if they haven’t been able to in the past. As such, you will likely be able to find someone who will pay you exactly what you want for the house, even if it does take a little bit of time to collect 100% of your proceeds.
Collect More Each Month
In addition to getting the overall price you would like to receive for the property, your tenant will also likely pay you a higher than average “rent” payment each month until the agreement has completed and they buy the house outright. In some cases, a percentage of the monthly payment will go toward the down payment on the house, owners can still find themselves collecting a higher than average check each month.
Peace Of Mind
When you consider offering seller financing to prospective investors, you’ll get the peace of mind in knowing that these people will have a mutual benefit to upkeep your home. If they trash it, miss a payment, or otherwise violate the agreement, they could potentially lose their down payment and have a foreclosure on their file.
Offering seller financing for your house in Baltimore may feel risky, however it is how homeowners are able to consistently receive income without the headaches of managing the rental property. If you are interested in offering seller financing in Baltimore, us at Charm City Property Solutions is happy to answer all of your questions and help you educate you on the process!