6 Owner Financing Tips For Sellers In Indianapolis

If you’re thinking of selling your house using owner financing, make sure you read this blog post to learn the 6 owner financing tips for sellers in Indianapolis…

There are many ways to sell your house. You could list it on the market and see what sellers will pay. You could work with a real estate buying company (like what we do here at Chris Buys Homes in Indianapolis) and get a fair all-cash offer, or you can consider owner financing and “be the bank” to sell your house to a buyer and collect payments over time.

Owner financing is a valuable but under-used strategy to sell your house. It’s where you offer terms to the buyer to pay you regular payments (just like a mortgage). Here are 6 owner financing tips for sellers in Indianapolis

Owner Financing Tip #1: Don’t Focus Only On Price

Price is just one component. Of course, you’ll want to find a price that is fair for both of you but there are other considerations as well (which could benefit you more than the asking price).

Owner Financing Tip #2: Timeline

Think about the timeline you want to be paid in. Banks might offer 5, 10, 15, 20, and 25-year mortgages. Do you want to accept payments over that period of time? Your buyer will want to find a timeline that works for them, too: they might not want to be paying you 25 years down the road!

Owner Financing Tip #3: Terms

The terms of the deal are one of the most important yet most overlooked parts of the deal. The terms might include things like how much down payment you want if there’s an early repayment penalty or a late payment penalty, and most important – how much interest you charge.

Owner Financing Tip #4: Protect Yourself

Even if you enter into an agreement with someone who is completely trustworthy, things could still go wrong – so make sure you protect yourself. For example, make sure you have insurance and the other person does as well for the various situations that could occur. And consider including a clause that retains the ownership of the house in your name until the house is fully paid.

Owner Financing Tip #5: Build Contingencies

Most of your owner financing agreement will be built around the “ideal plan” – of what would happen if everything goes perfectly. But sometimes things happen outside of our control, so building contingencies allow you to make better decisions if the unexpected happens. For example, what if the buyer no longer wants the house, or can longer pay, or wants to pay early, or wants to use the house in a different way than expected? Or what if your circumstances change and you no longer want to sell or you need to sell even faster? Agree to the contingencies with your buyer ahead of time and the arrangement will be so much smoother.

Owner Financing Tip #6: Get An Attorney

No matter how you ultimately structure your owner financing deal, make sure you work closely with an attorney who can help you. A poorly worded agreement could end up hurting you; an attorney can help.

Are you thinking about selling your house?

If you’re thinking of selling and are exploring your options, consider selling directly to us. If you don’t want to go through the hassle and headache of selling to the market then we might be able to help. Call our team at (317) 526-4712 or click here now and fill out the form and we’ll give you a fair all-cash offer on your house.

Would An Investor Buy My House In Indianapolis For Close To Asking Price?

Are you looking to sell a house in Indianapolis, the [market_zipcode} zipcode, or anywhere in IN? Then this blog post will answer the question, “Would an investor buy my house in Indianapolis for close to asking price?” Keep reading to find out the answer…

When it comes to selling your house, you have a couple of options:

  • You can sell it on the market by stating your asking price and then working with an agent to try and find a buyer (or trying to find a buyer yourself).
  • You can skip the “sell-on-the-market” process and just work with a buyer directly (like what we do here at Chris Buys Homes in Indianapolis) who can offer you a price for your house.

If you’re wondering, “Would an investor buy my house  in Indianapolis for close to asking price?” then here’s what you need to know:

Why Investors Invest

An investor invests in real estate because they hope to buy at a lower price and either sell at a higher price or rent out the property. Therefore, investors are motivated to find houses that are priced affordably for them to buy.

Before you set your asking price, think about what benefit an investor provides…

Understanding The Asking Price

would an investor buy my house for my asking price

Your asking price is a starting point for the negotiation. Even if you sell to someone on the market (through the help of a real estate agent), your asking price will be the starting point and the buyer will usually try to negotiate a lower price.

But here’s what most people don’t realize: the asking price has other factors built in… for example, it assumes that you have fixed up and cleaned up your property so it’s in pristine shape and ready for buyers. And, don’t forget that you have to pay bills, insurance, and taxes on your property the whole time an agent tries to find a buyer (which can take months). And then you’ll have to pay the agent a commission, which might be thousands of dollars.

So your asking price has all of these things “built into it”.

An Investor Skips All This

When you work with an investor, you actually skip all of this. You don’t have to fix up or clean up your house so you can save thousands of dollars there. And, you don’t have to pay bills, taxes, and insurance for months while you wait for a buyer to be found, so you save thousands of dollars there. And, you don’t have to pay a commission because no agent was used, so you save thousands of dollars there.

Add it all up: you save thousands of dollars by selling TO an investor instead of selling THROUGH an agent.

Summary

Selling to an investor allows you to sell faster and avoid all those expenses. That’s why an investor might not be able to buy a house near your asking your price. However, the discount you might provide them is money you wouldn’t see anyway while you wait months and “gamble” to sell your house on the open market.

Do you want to sell your house fast in Indianapolis?

If you’re looking to sell fast, get a fair all-cash offer from us. Just click here now to fill out the form or call our office at (317) 526-4712.

Can Appraisals Affect The Selling Price On A House In Indianapolis?

If you’re thinking about selling your house then you are probably trying to figure out what your selling price might be. Part of that process is getting an appraisal (or valuation) on your home. So, if you’re wondering, “Can appraisals affect the selling price on a house in Indianapolis?” then keep reading…

When selling your house, you’ll be juggling a lot of numbers!

  • There’s the asking price – the price you WANT to sell your house for
  • There’s the appraisal or valuation – the price that a real estate professional thinks you should try to sell your house for
  • There’s the selling price – the price that someone will ultimately pay for your house.

Can Appraisals Affect The Selling Price On A House?

Here’s the answer:

An appraisal should probably affect your asking price but it won’t affect the selling the price. Here’s why…

An appraisal is an educated guess. When you want an appraisal, the professional who gives you the appraisal will usually find the number based on what other comparable houses in the area have sold for recently.

They’ll look at several factors (including, but not limited to the number of bedrooms or bathrooms, whether the basement is finished or not, etc.). Of course, it’s just an educated guess based on research, and there are other factors that may influence the price beyond the appraisal.

The appraisal will highlight things you want to be aware of. It will show you what other people are willing to pay for a house and often what they consider to be important factors in the area.

The appraisal will then help you select an asking price that potential buyers seem willing to pay. For example, you might choose an asking price that is higher than the appraisal because your house is a better house, or you might choose an asking price that is lower than the appraisal because your house needs some work.

The Bottom Line

The appraisal is a guide; an educated guess. But you should also be aware that the appraisal is not always correct. There are many factors that determine the sale price of a house and an appraisal is only a starting point. Therefore, it won’t likely influence the selling price.

Are you thinking about selling your house?

Why bother with an appraisal at all? Why bother with showing your house to a bunch of strangers, and waiting month while they decide whether or not they want to buy. You can get a fair all-cash offer from us to buy your house fast… and then you don’t have to worry about getting an appraisal, or listing the house, or showing your house, or negotiating. Just pick up the phone and give our team a call at (317) 526-4712 or click here now and enter your information into the form.

How Important Is The Asking Price When Selling A House In Indianapolis IN?

If you’re thinking about selling your house in the 46142 zip code (or anywhere in IN, one of the first things you’ll think about is selling price. How much should you sell the house for? But there’s one question you should understand first, and that is: How important is the asking price when selling a house in Indianapolis IN? In this blog post, we’ll answer this question to help equip you when you sell your house…

When you want to sell your house, you set an asking price. Of course, most people know that this is rarely the selling price – so why set an asking price at all? Just how important is the asking price when selling a house in Indianapolis IN?

An asking price is actually a very useful “tool” that does 3 things for you.

First, It Attracts Certain Buyers And It Repels Certain Buyers

There are buyers at every price point in the spectrum. A higher price will catch the attention of higher end buyers (while it repels low-end buyers) and a lower price will attract the attention of lower-price buyers (while it repels high-end buyers).

There’s nothing wrong with this – after all, you don’t want to waste your time trying to sell your house to someone who has no intention of buying. So the right asking price can be used to help the right buyers see your house as a desirable purchase.

Second, It Reveals Information To Buyers

The price of your house, in comparison to similar houses, will reveal information to potential buyers. For example, if you live in a neighborhood where the average sale price is $100,000, and you’re asking $75,000, what does that say to buyers? It says that your house may need some work or you’re in a hurry to sell. And what if you live in that same neighborhood but ask $125,000? It might say that your house is superior to the other houses because of how you’ve decorated it.

Third, It Is The Starting Point Of Negotiations

It’s very rare for a house to sell at exactly the asking price. All home sales are negotiations between the sellers and the buyers (and the agents that might represent them). The asking price simply puts a piece of information out there for negotiations to begin from. As a seller, you might put out the price and then work on getting a higher price while your sellers start with that price but work on getting a lower price.

So, just how important is the asking price when selling a house in Indianapolis IN?

It’s very important to help a house sell. But it’s not the only way to sell! If you’re not sure what your asking price should be, or if you’d like to skip the sales process altogether, you can get a cash offer from us!

Are you looking to sell your Indianapolis house fast?

If you’d like to sell your house and skip the sales process altogether, then call our office at (317) 526-4712 or click here now to fill out the form. We’ll get back to you within 24-48 hours to make you an offer on your house.