So, recently we’ve been talking about putting the house up for sale. Possibly after getting some minor things done like floors, cabinets, and oh yeah, the ROOF. Ok maybe not so minor. After doing some research on the subject I’ve learned that to most people, the prospect of selling their home can be positively intimidating. First of all, there are usually plenty of things to do just to get it ready for the market. Besides the normal clean-up, paint, fixing odds and ends, chores that always wind up costing more than you planned, there are always the overriding concerns about how much the market will bear and how much you will eventually wind up selling it for. Will you get your asking price, or will you have to drop your price to make the deal? After all, your home is a major investment, no doubt a rather large one, so when it comes to selling it you want to get your highest possible return. Yet in spite of everyone’s desire to get the top dollar for their property, most people are extremely unsure as to how to go about getting it.

If you are in the same situation we are, I would strongly consider researching and/or discussion Sellers Carry-back.  Smart sellers have long known a little financial trick that has helped them to get the best price for their property. In fact, in some rare settings, they have even sold their properties for way more than they were worth using this technique. Even though that might be the exception instead of the rule, you can certainly use this technique to get the most money possible when selling your property. Seller carry-back, or take-back financing, has proven to be a surefire trick for closing deals. Most people do not think about when it comes to selling a property much less know what it means or EVEN is!

According to the Federal Reserve, there are currently over 100 Billion dollars of seller carry-back (seller take-back) loans in existence. That’s a lot of cash! More importantly, it is also a very clear indication that more people are starting to use seller take-back financing techniques because it can really help sellers and buyers financially. The seller take-back financing is an easy concept once you understand it. So without trying to sound too technical it’s basically a loan created when a property is sold and the seller acts like a lender by helping in financing all or part of the total deal.

In other words, the seller is actually lending the buyer a certain amount of money toward the purchase price, while a traditional mortgage company (bank) usually funds the balance of the purchase price. A seller take-back loan is secured with the property. The loan becomes the primary mortgage and is fully secured by the property. In most seller take-back deals, the buyer repays the seller with interest according to what they have worked out over time. Usually, the terms call for the buyer to send the payments, consisting of principal and interest, every month. This is important because it creates a steady monthly cash flow for the note holder. And if the note holder decides to cash out, he or she can always sell the note for a lump sum cash payment.

So wether you’re trying to find other options to suit your situation you might want to investigate this little trick, technique, tomato, well you get what I’m saying! Real estate can be very tricky if you’re not educated and believe me, I’m learning new things everyday! Thanks for reading and please leave a comment below if you enjoyed reading this article.

Cheers!
John

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