For Sale By Owner

For Sale By Owner (Source; theprovince.com)

Are your a do-it-yourself home owner who is tempted to sell your own house?  Are you marketing your own home online?  Are you interested in getting a higher price for your San Jose FSBO?

Well, the banks might be your ironic allies in this effort since they are still not lending to marginal borrowers who have less than perfect credit. This means that if you offer seller financing to ease this credit crunch; you should have more buyers for your home.

Using Seller financing, you will be able to ask for higher price since you are offering the buyer great deal of flexibility with payment terms and interest rate you want to charge on your financing.  You can offer these options to your buyer:

  • Small Down Payment
  • Use a 2nd lien on the property for a specified term with a balloon payment due on or before a certain date.
  • Charge a higher interest rate but be careful not to violate your state’s usury laws.

There are two main options for developing a seller financing plan for a real estate transactions.   In one option, the buyers agrees on  a promissory note that details the repayment terms.  With this option a Deed of Trust is recorded and the ownership is transferred to the buyer.  The 2nd option is a Real Estate or Land Contract which is recorded.  The beauty of the Land Contract is that title of the property is not transferred to the buyer untill all the payments on the note has been paid to the seller.

A real estate or Land Contract then is a preferred option if you are concerned about default where your buyers might not make the payments on the loan.    WIth the Land Contract in place, there is no need for you to foreclose since you are still on title.

Contact Us if you are interested in selling your San Jose FSBO.