With the changes to the economy and the development of more online tools, many homeowners are discovering that there are new ways to sell their home that weren’t available before. You no longer have to sell through an agent – you can sell on your own house or you can even do owner financing, effectively becoming the bank. If you’re wondering how to sell a house by owner financing in Texas , keep reading this blog post and we’ll walk you step-by-step through the process…
Step 1. Determine whether you have a mortgage
If you have a mortgage you probably will not be able to offer owner financing. There are some ways to do owner financing with an existing mortgage in place but the process is a little advanced for most people to do without the help of a good lawyer and contracts so we don’t recommend it. Luckily, if you do have a mortgage and still want to sell without an agent or fees you can check out some of the benefits of working with Liberty.
Step 2. Talk to a professional for help in crafting an agreement
With seller financing, you are essentially acting like a bank. The buyer will pay you a down payment and then pay regular monthly payments until the house is paid off, and then it becomes their house, free and clear. You should make sure you are protected and talk to a real estate attorney to ensure that you are obeying all federal, local, and state laws! If you need the name of a good real estate attorney, get in touch with us and we can make an introduction.
Step 3. Market your house (online and offline)
Once your paperwork is in place, you are ready to advertise that you have a house for sale. Be sure to let people know that you offer seller financing, including the terms, down payment, credit requirements and any other important info. There is no limit to how much marketing you should do – the more, the better. Some of the most common places to advertise are Craigslist, Facebook and local papers but be creative. It takes a lot of work to get it out there!
Step 4. Work with potential buyers
As your marketing captures the attention of potential buyers, work with them to show them through your house. When someone makes an offer on your house, negotiate the price and terms with them and find the middle ground that will ensure a win/win situation. Remember, selling a house can be emotional and always try to be polite to the people who express interest! Once you find the right match sign the papers when you and the buyer reach an agreement.
Step 5. Close the deal
Once you agree on a price and have signed a contract you should hand everything over to a title company in most cases. The title company will make sure that there are no issues and handle all of the money so that nobody has to worry. When the process is complete the new owner will take the deed (and keys!) and make payments according to the agreement until the home is paid off.