The real estate for sale by owner market is filled with exciting opportunities. However, it is also teeming with problematic listing that might not be evident on the surface. A lot of people rely on agents to guide them through this market and find real estate that satisfies their requirements. However, having a middleman also has its downsides. Some would rather do away with the agents and buy real estate for sale by owner. By using a direct route, they are able to enjoy the following advantages:
No Agent Fees
The most obvious benefit is the absence of agent fees. You need to pay realtors for their work which means the total cost of the property acquisition balloons with their presence. Actually, it is the sellers who generally use realtors to find buyers for their properties. However, it is the buyers who end up paying for the premium anyway. The add-on is often a percentage of the original selling price such as 5% or 10% depending on their arrangement. Given the cost of these assets, even a small percentage can translate into a large sum of money.
Easier Payments
If you are buying raw land, then you might have an easier time dealing directly with the owners. Many will allow their buyers to provide monthly payments unlike homeowners who want everything in one go. Their might even arrange the financing themselves. They could agree to a low down payment to make it more affordable for buyers. The ease of payments make this a lot more attractive than having to apply for a loan in a bank with a long list of requirements and more challenging terms.
Lower Interest Rates
Owner financing also comes with lower interest rates, at least compared to many banks. You can negotiate a better deal with the owners than most lending institutions. You can save thousands of dollars thanks to this arrangement which makes the property even more affordable.
Faster Closing
Another reason to opt for direct buys from owners is that you can close much faster, especially when it comes to undeveloped land. The owner will take care of all the papers. You can just sign the documents for the transfer of ownership and you’ll be done within a day. Things tend to be more complicated with homes, especially if you are lending money from a bank. If you want speedy transactions with less hassles, then this is the way to go.
