How To Sell Your Home On Payments (aka Seller Financing)

Here’s an important question — what are you going to do with the money after you sell your home?

If you don’t need your cash up front in order to buy another home, or for some other purpose, then you might want to consider selling your home on payments. With interest! You will get a much better return on your money than you would by sticking it in the bank at a tiny interest rate. You may have heard this concept referred to by other terms, such as “seller financing”, “owner financing”, or “seller carryback financing”. They all refer to selling your home on payments.

How Does It Work?

Selling your home on payments means that instead of getting a lump sum of cash up front, you get payments over time. In other words, you become the bank for the buyer. The buyer’s payments to you would consist of both principal and interest, so over time you would receive significantly more than the sale price of the home.

Here are some examples:

Example 1 – Selling A Free And Clear Home On Payments

Let’s say that you own your home free and clear, and it’s current market value is $200,000.

In this example we would make payments to you totalling $402,000 over the life of the loan. The total amount of money you would receive over the life of the loan is more than double the market value! (That’s why banks can afford to build all those big buildings!)

Example Numbers:

  • Market Value: $200,000
  • Sale Price: $200,000
  • Monthly Payment To You (Principal and Interest): $1,116.83
  • Interest Rate: 5.35%
  • Amortization: 30 Years
  • Total Interest Paid To You (Over Life Of Loan): $202,057.86
  • Total Principal and Interest Paid To You: $402,057.86
  • Estimated Time To Close: 7 Days

Example 2: Selling A Home On Payments With An Existing Mortgage And Some Equity

Let’s say that your home’s current market value is $200,000, and you have a remaining mortgage balance of $150,000. The other $50,000 is considered your “equity”.

Depending on the terms of the existing mortgage, you might still be able to sell your property and become the bank. If the terms of the existing mortgage are workable, we would take over the payments on the existing mortgage, and make monthly payments to you, on a new second loan, in return for your equity.

Example Numbers:

  • Market Value: $200,000
  • Sale Price: $200,000
  • Closing Costs To You: $0
  • Your Money Out Of Pocket: $0
  • Existing Loan Taken Over By Buyer: $150,000
  • New Mortgage Owed To You: $50,000
  • Monthly Principal And Interest Payment To You: $253.34
  • Interest Rate: 4.5%
  • Amortization: 30 Years
  • Total Paid To You (Over Life Of Loan): $241,203.36
  • Estimated Time To Close: 7 Days

Selling your home with financing allows for a lot of flexibility. In some cases we can even purchase your home for higher than market value or purchase a home with an underwater mortgage.

If you would like to sell your home on payments and start earning interest instead of paying it, please call us at (480) 447-3577, or provide your info in the form below. We will get back to you right away to discuss your options and view your property.

Sell Your Home On Payments

Please submit your info below and we will contact you right away to get you an offer on your home.
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