What Does It Mean To Sell With Terms
Traditionally, most homeowners who need to sell for various reasons could only use the services of real estate agents. When selling with Terms, this is no longer the case. Not only can homeowners sell their houses much faster now, they also have more control over the deal.
Terms In A Nutshell
Terms could not be simpler. It’s basically a means of selling your home quickly via a form of delayed cash-out. Traditionally, real estate listings were the only way to reliably sell houses. However, this method can have problems that many sellers would rather not deal with.
For one, homes (particularly high end homes) can languish on listings for months or years. During that time, they lose value. This could mean hundreds of thousands of dollars lost along the line.
There’s also the matter of stress since the thought that the home hasn’t been sold yet and that it’s losing value the whole time also takes a toll on the seller. It can be difficult to move on when you’re carrying a house-sized package on your back.
With Terms, because you can sell quickly for top retail dollar this is usually not an issue. There are 3 main ways to sell with Terms. Regardless of which option you choose, the home can be sold and payments will be made, first with a sizable down payment, followed by monthly rates and finally, the full payment.
What’s In Terms?
In Terms, there are several options available to you with several sub-options on top of those. The major ones include Owner Financing, Lease Purchase and Subject To.
Owner Financing is where the seller will transfer ownership of the home to the buyer once the agreement has been signed. Lease Purchase is where ownership only transfers when the full payment has been provided. Finally, Subject To is where ownership transfers but the debt stays in the name of the seller.
We already discussed these Terms options individually through previous articles, so you can check those out for more information.
So, Why Terms?
So, why sell your home with Terms instead of using real estate listings? For starters, it’s a lot simpler. There’s no need to deal with complicated paperwork, banks and the sometimes annoying real estate agents. The second reason is the immediate payout.
With real estate listings, you have to wait for a buyer before you get paid and that could take months or years. With Terms, you get paid right away via a substantial down payment or option deposit. You also get regular income which is usually in the form of monthly payments. Finally, once the buyer gets approved for a loan, you get the full amount for the house.
In the event that you want to apply for another loan after your home is sold, we can use a Wraparound Mortgage which will make this a lot easier as well. So not only will selling your home be faster, getting a new one will be too.
If you have more questions or need further clarifications, contact us via email or call us. We are always happy to help.