Seller Financing Can Help Sell Honolulu Homes!

October 15th, 2008 categories: For Sellers

A recent article at the Wall Street Journal.com reminded me of my beginning in the real estate business. It goes on to say…

“Aside from the marketing incentive that owner financing provides, there are additional benefits to this strategy from a seller’s perspective.

In return for financing the mortgage, sellers receive a steady income stream from the mortgage payments. And at a time when other investments are more volatile, the interest on these mortgages could provide sellers with a welcome return, perhaps 7% or more.

“Many people carry paper intentionally. They can defer capital gains, and they create retirement income,” says Ms. Rickabaugh. Those who own a home free and clear, or have a lot of equity built up, may find this strategy particularly attractive.”
CLICK HERE TO READ THE WSJ ARTICLE

In 1983, with 30 year fixed rate loans in the 18 to 21% range and banks with little or no money to lend, many properties could be sold only if this seller was will to finance the purchase for the buyer. In other words, the buyer would make a normal down payment and then make monthly payments to the seller (no loan was obtained from a bank).

For some buyers, it has become difficult to get financing. A seller who has enough equity to offer owner financing can significantly expand the pool of available buyers. If you have a Honolulu house or condo that is not selling, this may be a viable way to get it sold.

On a final note, local banks (Bank of Hawaii, First Hawaiian Bank, Central Pacific Bank & American Savings Bank) seem to have lots of money to lend. Contrary to 1983, there is very good traditional financing available, consider owner financing as a buyer incentive or for the benefits it offers a seller. If you would like to discuss your situation, please call me at 808-737-2093 (or toll free at 877-737-2093).

OTHER POSTS WORTH READING!
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Realtor Code of Ethics
Determining Offering Prices
Pricing Your Home
Long Term Investment Makes Sense
Honolulu Schools

This entry was posted on Wednesday, October 15th, 2008 at 11:00 am and is filed under For Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.