When you acquire a Connecticut home through probate or have a house you no longer need, you have several decisions to make. What do you want to gain? Are you concerned about renting to tenants? Are you close enough to the property to manage it well? If you decide to sell, do you plan to sell the home yourself or pay a real estate agent’s fee? Are you going to spend the proceeds or invest it?
With so much to consider, it makes sense to work with someone who knows the ropes and can help you achieve your objectives. With some planning, you can select the buyer that will help you get what you want from the sale. If you want to avoid the hassles of renting your house and invest the proceeds, increasing your profit over time, then selling your house with seller financing is a good option for you.
Avoid the Hassles of Renting
When you choose to rent out a house rather than sell it for a lump sum, you do get the benefit of receiving your money over time. But, renting comes with a variety of hassles. First, you’ll probably be renting to people you don’t know. They could damage your property, fail to make payments on time, or leave without notice. Also, you have to manage the property, keeping it in good repair to protect your investment. With seller financing, you avoid all those issues. Whoever buys it takes on all the responsibilities of ownership, but you still get your money, including interest, over the long term.
Seller Financing vs. Lump Sum Payment
The benefit of selling a house outright is that you can get a considerable sum of money to do with as you please. But getting a lump sum begs the question: what are you going to do with it? Especially if you’re concerned you’ll spend the money too quickly and be left with nothing. If you would rather stretch that gain over several years and INCREASE your net profit, seller financing might be the solution you need.
A More Secure Investment
You could take the lump sum from the sale of your Connecticut house and invest it in the stock market. Yet, the market can be extremely volatile at times. You don’t know with any degree of certainty whether the stock will rise in value. The stock might go down or even become worthless. With seller financing, the amount of money you’ll receive is already determined and the interest is locked in. No matter which way the stock market – or real estate market – goes, the buyer is legally bound to pay the payments they’ve agreed to pay.
Know Your Buyer
With all these advantages, selling the home with seller financing certainly sounds like an excellent choice. Yet, you have to carefully vet your buyer to make sure they’re qualified. A better option is to sell to a buyer whose business is buying and managing houses, such as Sunrise Real Estate. We are used to managing properties and taking care to satisfy our lenders. Best of all, you’re no longer responsible for keeping the house in good condition. You just sit back and watch the proceeds – plus interest – come into your bank account one payment at a time without the risks and hassles of renting.