Seller financing is a transaction where the seller agrees to receive regular payments, typically monthly from the buyer instead of a lump sum payment until the agreed upon amount is paid. As in any normal sale, a down payment is negotiated between the parties. It is a simply a case of seller agreeing to lend money to the buyer to purchase and close on the property. The seller transfers the ownership of the property to the buyer at the closing. In return the seller receives a mortgage, entitling him to a schedule of payments and a lien on the property until the loan is repaid. It is also called owner financing, or owner carry-back.

 Seller financing differs from conventional loans. The seller does not give the buyer cash to purchase the home as a lender does. The seller instead extends credit to the buyer against the purchase price of the home and the buyer executed a promissory note and trust deed (or mortgage) in favor of the seller. The buyer will generally be required to give the seller a down payment, make monthly installments on the loan and have to pay interest.

From a seller’s point of view, seller financing will increase the pool of potential buyers. There are many buyers who look only for properties offering seller financing. The deal can be closed quickly as the formalities to be completed are few. If one or more payments are received on the sale of a property after the tax year in which the sale occurred, the IRS will treat such a sale as an installment sale and will tax only the percentage gain reflected by the payments received in that year and not the entire gain. Seller financing spreads the gain over time and helps reduce taxes as taxes are paid as payments are received. Spreading a large gain over time can prevent being bumped into a higher tax bracket.

 Sell Your Hampton Roads Home Option

Multiple Options When Selling Your Home

So, there you are minding your own business cruising on I-64 enjoying life.  Then all of a sudden, BAM!! the unexpected happens – partner files for divorce, you lose your job, serious accident resulting in prolonged time off work, facing foreclosure, facing bankruptcy, your business goes belly-up,  or other life-changing and personally devastating event.  These situations usually mean that at some point you will have to sell your home fast, either to downsize to something more appropriate or to raise cash quickly to cover personal or business debts.

In today’s real estate market selling a home can be a very stressful. There are several options to choose from which can mean the difference between selling your home for a profit or barely breaking even. Depending on your situation, below are some of the options available to you when you make the decision to sell your home.   

1. Selling Your Home Using a Real Estate Agent

A real estate agent can be a very valuable tool if you have the time and the equity to spare.  An agent will come to your home, evaluate your property and assist you in coming up with an asking price.  Listing your house with a real estate agent in these instances will prove to be a mistake in many cases.  As stated earlier it may take months upon months to sell the house, while you are still paying that mortgage, the taxes, and insurance.  You will need to fix certain things and clean other things to bring it to good condition to sell.  Fact of the matter is, you may incur more costs than it’s worth when listing with an agent.

2. Selling Your Home For Sale By Owner (FSBO) 

Of course you could just sell it yourself…without an agent. After all, who knows more about the house than you do? You still have to put up with dozens of strangers trampling through your home… only now you’ll have to be there yourself. For some owners, that’s a scary thought. And what if you need to move fast? You could dump the price and hope someone will steal your house, but can you afford to do that? Or, you could go ahead, move out, and leave it with the agent.  And every month, while making two huge mortgage payments (most people find that tough to swallow), you hope and pray that someone will buy your old house next month… and the next…and the next.  Of course, that’s assuming you can even qualify for a new mortgage with the old one still on your back. And when it’s sitting vacant, what’s going to stop someone from climbing through the kitchen window and tearing up your property?

3. Selling Your Home with The House Guyz 

 There is another way to sell your house in Hampton Roads!  A group of real estate investors have come together to form The House Guyz .  Specializing in buying houses all over the Hampton Roads.  We will be able to get you the money, possibly in cash, within a few weeks. There are no ads to run, no commissions to pay, and very little stress on you. Everything can be taken care of in little time and you can take the money and move on with your life.        

The House Guyz do tend to try to break down the price of the home more, you have to remember we want to help you, but we want to make some kind of profit as well. The speed and lack of stress to many is the primary reason for choosing to sell to The House Guyz.