Given the transformations we’ve seen in our economic landscape in the recent past, a multitude of homeowners have come to realize there are fresh approaches to selling their homes that weren’t feasible previously. The traditional route of going through a real estate agent isn’t your only choice anymore – you can now handle the sale by yourself, or even choose the route of seller financing. If you’re curious about the ins and outs of owner financing in Tennessee, read on. This article will take you on a detailed journey through the process, step by step…
Step 1. Establish if you own the house outright or are still paying a mortgage
First, figure out if you own the house outright or if there’s still a mortgage to pay off. It’s crucial to note that in certain states if there’s an existing mortgage on the house, owner financing might not be an option. However, other states do permit this method even with an active mortgage.
Step 2. Consult with a real estate attorney for assistance in drafting an agreement
When it comes to seller financing, you’re essentially taking on the role of a bank. The buyer gives you a down payment and then makes regular monthly payments until the entire cost of the house is covered. At that point, they become the official owners of the house. Given these complexities, it’s essential to consult with a real estate attorney. They can help you ensure your agreement abides by all federal, local, and state laws, and also safeguards your interests! Should you need recommendations for reputable real estate attorneys, don’t hesitate to reach out to us. We’d be happy to make an introduction.
Step 3. Advertise your house across online and offline platforms
Once all your legal documents are ready, it’s time to get the word out about your house for sale. Don’t forget to highlight the fact that you’re offering seller financing. The extent to which you market your house is entirely up to you – remember, the more exposure you can get, the better.
Step 4. Engage with potential buyers
Your marketing efforts will start to attract the attention of potential buyers. Engage with these interested parties, giving them a tour of your house and answering their questions. If a buyer makes an offer, negotiate the price and conditions with them to reach a mutually beneficial agreement. Once both parties are satisfied, sign the official documents.
Step 5. Receive the down payment and transfer the keys
After reaching an agreement on the price and signing the necessary documents, the next step is to collect the down payment from the buyer. Once this is done, it’s time to hand over the keys. Generally, you’ll continue to own the house and collect payments until the entire amount has been paid. Once the house is paid off, ownership will then transfer to the buyer.