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How To Sell A House With Owner Financing In NC – The Step-By-Step Guide

With changes to the economy that we’ve seen in recent years, many homeowners are discovering that there are new ways to sell their home that weren’t available before. You no longer have to sell through an agent – you can sell on your own and you can even accept owner financing. If you’re wondering how to sell a house with owner financing in NC , keep reading this blog post and we’ll walk you step-by-step through the process…

Step 1. Determine whether you own the house outright or still have a mortgage

The first step is to determine whether you have a mortgage, also known as a Deed of Trust in North Carolina. Is your house paid off or do you still owe money to the mortgage company? If your property is free and clear of liens it is you will certainly be able to sell and offer new owner financing to your buyer. If you still owe on the property you will need to review the Deed of Trust and the note to determine what restrictions, if any exist. This way you can craft new owner financing with the existing loan in mind. Either way you will need the help of a qualified real estate attorney.

Step 2. Consult with a real estate attorney for help in crafting an agreement

With owner financing, you are essentially acting like a bank. The buyer will pay you a down payment and then pay you regular monthly payments until the house is paid off, and then it becomes their house. So make sure you talk to a real estate attorney to ensure that you are protected and obeying all federal, local, and state laws while also protecting yourself! CYA – Cover Your Assets! (If you need the name of a good real estate attorney, get in touch with us and we can make an introduction.)

Step 3. Market your house online and offline

Once you know what owner financing options you can offer to the buyer, you are ready to advertise that you have a house for sale. Be sure to let people know that you offer seller financing. There is no limit to how much marketing you should do – the more you can do, the better.

Step 4. Work with potential buyers

As your marketing captures the attention of potential buyers, work with them to show them through your house. When someone makes an offer on your house, negotiate the price and terms with them and find the middle ground that will ensure a win/win situation. Send the agreed upon terms to the attorney to draft the contract. Sign the papers once you and the buyer iron out the details and the attorney approves.

Step 5. Collect the down payment and hand over the keys

Once you agree on a price and have signed the papers, collect the down payment and hand over the keys. Depending on how the sale is structured you will either retain ownership of the property or it will transfer to the new buyer when you sign the final paperwork. Both methods are legal and have benefits.

You can choose to sell and retain ownership until the entire balance is paid off. In North Carolina this is called an installment land sale or contract for deed. It works like this, you will continue to own the house and collect payments until the house is paid off in full, at that time ownership transfers to the buyer. In this case because you still own the house you can usually write off the expenses like real estate taxes and property insurance. Also, if the buyer stops paying or just up and moves in the middle of the night you are still the legal owner of the property.

The other option would be traditional seller financing. In this case the ownership will be transferred to the buyer when you hand the keys over. You will receive a recorded deed of trust and promissory note from the buyer just like the bank or mortgage company would in a traditional home sale. Generally speaking, most sellers will receive a larger down payment when the sale is structured this way. You no longer own the property and are not liable anymore.

If you’re wondering how to sell a house with owner financing in NC , we can help. We might be able to offer you some advice or even work out an owner financing arrangement where we buy your house from you. Talk to our team at ‪(704) 769-0141‬ or by clicking here to fill out the form.


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