Owner financing help

14 Replies

I need some help selling my personal home with owner financing.

It’s in Northern NJ and I’m having a hard time finding any buyers.

Is there somewhere or someone specific I should be marketing to?

@Danny Haddad

Lower the price if you are not finding buyers. Doesn’t matter who you market to if price isn’t right. If it’s going to be owner occupied to comply with Dodd frank you need to qualify them and should also get an appraisal.

Are you doing a FSBO? Where is your property being marketed? If it is not on the MLS you are missing a large portion of potential buyers.

Danny, your state is still on lockdown, so everything else and your marketing has to be dialed in almost to perfection. Unfortunately, not enough information shared here to be able to help you more.

@Danny Haddad

I agree with what @Don Konipol said -- if it's priced right, you'll have interest...  

@Sean McDonnell rightly points out that there may also be a marketing problem. It could be priced right, but not reaching the people that are looking to purchase.

Here's what I'll add... if you're trying to sell using owner financing, you're limiting your buyer pool to people who are interested in owner financing.  Most people looking for SF homes are going to be owner-occupants and they'll stick with what they know, which is traditional financing.   Additionally, their buyers' agent will counsel them to stick with traditional financing because it's what the buyers' agent knows.  There's just a high-level of perceived risk for regular buyers.

Most people looking for owner financing are investors, and they typically won't pay top dollar for a home.  So if you're insisting on owner financing, you will likely have to come down in price to attract the type of buyer that would accept owner financing vs. bank financing.

Or, it could just be your marketing and potential buyers just aren't seeing the house.

Question for you: why do you want to sell using owner financing?  What's the benefit for you, and is there another way to get you what you want?

@Danny Haddad - have you lived there long enough to escape capital gains taxes?  If can sell tax-free, you could invest the lump sum into a syndication or something that will bring you the long-term income you're looking for.  Even if you can't sell tax-free, there are still options to escape taxes and have an investment that produces steady returns.

For many reasons, I don't think FSBO and owner financing will get you the highest price. It may even get you a lower price than by using an agent and paying their commission.

A huge portion of the population can't qualify for financing.  Self-employed, people with low credit excetera excetera. I have perfect credit and good debt to income ratio and an 18-year W-2 and it's still like pulling teeth to get financing.

I have my last home on a rent until you buy contract that I sold for sale by owner.

I had a number of people request owner financing. I'm not really interested in making 6-7%.  and that's an expensive payment for somebody, but I pay 5% on my investment properties.

wait until your home is really ready to be seen.  

do a nice walk through video and nice pictures. 

have the mls perfect before it's listed

put up signs in front of your house and the main streets that feed it. You're most motivated buyers will be the people that live close or travel through that area.

Put up more signs around nearby stores and restaurants.


for sale by owner 

no banks needed!

phone number

you will have a billion phone calls. Most people that respond don't care so much about the price but are monthly payment sensitive.

what interest rate were you planning on charging? Just curious.

5-6 percent  interest is more realistic.  What price are you asking and how much down?  What would a honest appraisal price be?  Are other homes nearby for sale?  Are you priced below the median of your competition? 

I  usually list with a seasoned real estate agent who has extensive experience in my neighborhood.  Your online pictures need to really stand out from your competition.  Each one should be outstanding and cause desire in buyers.