You don’t have to! Many sellers are turning away buyers for their Santa Cruz real estate because the buyer can’t get the necessary financing. Understandable, but remember, the downturn in real estate has definitely made it a buyer’s market. Simply put, you may have trouble finding another one.
So what’s the “holy grail” of options? What can you do to sell your home when nobody can afford to buy it straight out? It’s called “owner financing”, or “Owner Will Carry” in real estate terms. In other words, you finance the sale. It’s not the end-all, be-all answer, but it’s worked for many as a win/win situation, and here’s why:
• Maintenance – Owner financing isn’t the same as “rent to own”. Once the contract is signed, you no longer have to worry about keeping up repairs.
• Interest – One of the nice things about owner financing is that, since you’re lending money to the buyer, you can charge interest on that loan.
• Quit Claim Deed – You can require the buyer to sign a Quit Claim Deed, which goes into the escrow account with additional instructions. The Quit Claim Deed allows the Santa Cruz real estate to be restored to you if the buyer is late with payments by a set amount of days. In this event, the buyer loses the title, as well as all payments they’ve made. Not only is this a big incentive to make payments on time, it’s also a good way to keep yourself protected from nonpayment.
• More potential buyers – Many potential buyers are unable to get financing for a large loan, but can qualify for a smaller loan. This means a larger amount of people will be interested in buying.
The best time to provide owner financing is when there are more houses than buyers. Now is a perfect example of such a time. If you’re having trouble selling your Santa Cruz real estate and can afford to finance another buyer, owner financing is choice you should consider to get your home sold.
Would you like more information on owner financing? Call me today at 831.662.6522 or email me at email@example.com