I would like to take a moment to clarify something. A friend of mine was recently trying to sell her house by listing it with a real estate agent. After six months, the listing expired. My friend was frustrated. She had been looking for a buyer for six months. I reminded her that I am a buyer. Right here. Ready, willing, and able to buy her home. She said that she didn't want to sell at too low a price. She assumed I was going to make a really low offer on her home.
There are home buyers who try to get the home for as low as they can. This is because they are not going to close on the home; they are going to assign their contract to a cash buyer who needs to buy at a certain price in order to be able to renovate and flip the house.
Investors can basically buy in one of two ways:
1. deeply discounted for cash or
2. closer to full market value on terms
You may be wondering what it means to sell your house on terms. When I buy on terms, I simply make monthly payments to the seller. Instead of paying a bank each month, I pay the seller. Why would a seller sell with seller financing? Well for one, he or she may get a higher price with no real estate commissions paid. The seller can get an immediate sale and be done paying taxes, insurance, electric bill, HOA dues, and any other bills associated with holding the property. It's a way of immediately stopping the bleed. Instead of lots of money going out every month for an unwanted property, suddenly money starts to flow in. An installment sale also may be beneficial in terms of capital gains tax.
If you are motivated seller, you should consider the benefits of selling with owner financing or selling by letting me take over your mortgage payments. Please give me a call if you'd like to learn more.
Thanks, and have a nice evening!