Home sellers who’ve been out in the market for quite sometime have probably found some difficulties selling their properties especially with a depressed financial market affecting the housing economy as well. More and more people are turning to the quick fix of renting and simple throwing money down the drain instead of fulfilling their dreams towards a home of their own. As a seller you can actually do something about this by turning your asset into positive cash by selling your property through vendor finance. With vendor financing, you as a seller no longer need to worry about passing over mortgage through the sale price making the process easier and getting you a prospect buyer in no time.
So what’s vendor finance all about anyway? Vendor financing is when a seller agrees to sell his/her property through agreeable terms with a buyer and shoulders a portion of the mortgage cost or at times the whole cost involved with selling it. When a property is sold usually you are asked how much is the remaining mortgage that needs to be payed off with the bank and how much is the total value of the house, with vendor finance the seller doesn’t pass the mortgage fees toward the sale price and instead agrees to pay for it and in turn arranges for a monthly payment much like an actual house sale but without the need for the buyer to acquire a bank loan. It’s easy and practical and because we all know not everyone can afford a mortgage.
And what’s in it for the seller when selling it through vendor finance? why not sell it directly? Actually, selling a house directly is not a bad idea, if you have an agent then it would be easier all the more. However the odds of getting a good sale for your property is a bit slim especially because getting housing loan is quite difficult these days and a lot of buyers are actually opting for the wise alternative of rent to buy. With vendor financing you can opt to sell your house through fixed monthly installments much like having a mortgage home. You can have a steady source of income through the repayments.
When opting to sell a property through vendor finance you come up with a contract with a buyer and agree upon an installment payment plan up until the total value of the property is purchased. Within the contract period you get to keep the title and deed of ownership of the property meaning if the buyer suddenly defaults or get behind on payments for a certain period you may take action and have the property turned over to you and have it marketed with another buyer. Within the agreement you may ask for an initial deposit or down payment as a form of security which is totally feasible considering the size of the deal.
So if ever you’re considering selling your property and have been on the market for quite some time with no high profile buyers around, then maybe it’s time to consider selling your house through vendor finance. It’s fast, easy and practical and you also get to help a buyer to have a good quality home much like how you enjoyed staying in it in the past.