Why It Makes Sense to Sell Your House with Owner Financing.

Own your home free and clear? Great! That is really wonderful, though you may be in for a surprise when it comes time to sell the property. Depending on your tax bracket, you could be hit with as much as a 40% tax hit upon completion of sale! That is a lot! If the home is worth 200k, taxes alone will reduce this amount to 120k. That's right - $80,000 of equity will dissapear the moment the title company closes the deal. If that wasn't enough of a problem, what if you list the property with a realtor, as most homeowners do? Another 6 percent is deducted from the pretax amount! Add in closing costs and other fees, and all of a sudden the 200k you were expecting to put in pocket after your house is sold is somewhere just over 110k!

The taxes, realtor comissions, and closing fee's add up and are very important to put into consideration when selling a home. Luckily, there are other, smarter, options for the homeowner. Instead of selling all at once, why not owner financing the house and avoid paying taxes up completion of sale? While you won't get 110k at once, you will get a steady stream of money per month, until the house is paid off! Not only will you actually get the real market value of the property in your pocket, in time, you may even get more than the 200k Market Value when you charge interest for the loan. That's right, you may actually get a fair sum more than market value using this creative selling strategy.

How it generally works is that within the purchase and sales agreement, a stipulation is cited noting the specific selling options the home owner will like to use to complete the sale; in this case, owner financing, where the purchase price, term length, and at what percentage or interest (if any). Essentially, what is happening, is that, you, the homeowner, is acting like a bank, receiving a montly mortgage payment until the home is sold off. But most importantly, no one needs to get bank mortgage approval. This is very appealing to some home buyers. Give us a call, or fill out this form, and we would be absolutely thrilled to work something out that we can both agree on.

• Avoid a 40% tax hit at sale, realtor commissions, and closing costs
• Possible to Charge interest on the 'loan', netting the seller more than market value in the long run.
• Receive a steady stream of income each month until the house is paid off.