If you are like most people selling a property, than you want to get as much money for it as possible. Seller take-back financing has long been an extremely popular technique with knowledgeable sellers of real estate because it has proven to be an effective way to increase profits. Aside from enabling a seller to receive a higher sale price, seller take-back financing, when structured properly, is usually very safe, easy and extremely profitable.
By way of quick review, a seller take-back loan is created when the seller of a property agrees to lend the buyer a certain amount of money toward the property purchase price. In doing so, the seller, takes back the amount in the form of a note. This seller take-back note is secured by property. In turn, the buyer agrees to repay the seller the amount of the loan, including interest, over a period of time.
Both the buyer and seller can gain substantial benefits from using the seller take-back financing technique. And the best deal always benefits all of the parties involved. Some buyers are able to purchase the house without having to increase their down payment. They also greatly benefited, by working out favorable repayment terms on the seller take-back loan that fit their repayment budget and timetable.
The sellers benefit by selling the house more quickly and by receiving the asking price, which is more than they might have received in a traditional transaction. In addition, the seller received additional benefits by creating a steady monthly cash flow in the amount of the payments. As an added benefit, the seller will get many additional profits above the selling price in the form of interest earned on the seller take-back loan, and always has the option of selling the loan at any time for a lump sum of cash.
In summary, using seller take-back financing techniques not only helps sell a property for more, but it also benefits both parties in ways that help close the deal quickly.
If you are planning to sell a property and would like to learn more about how you can use seller take-back financing most effectively for your Wenatchee real estate, I would be glad to help in way that I can.