How to Sell Your House above Market Value

Underwater mortgage is a term that has become far too familiar in today’s real estate market. Since the market has been steadily declining over the last few years, more and more homeowners are faced with a home that is not worth what they owe on it. In many traditional situations, there are really only three ways to deal with this.

The first way is too tough it out continue paying the mortgage and hope that the value comes back over time. The second option is to sell the property as a short sale and ask the bank to take less than what is owed. The third option in traditional situations is to ask your bank to modify your mortgage. Your bank may then agree to lower the amount of money that you owe on the house. This will hurt your credit and there is no guarantee that you will get the modification.

Now, for those of you that do not know, there is a fourth nontraditional option that you have that will allow you to sell your home and not take a hit on your credit. The technique I am talking about is owner financing.

Owner financing is a great way to get a house sold and to get the price you want. The reason this works is because a property that is owner financed has a greater value than a property that must be financed with new financing. Most people would prefer to buy a home with owner financing. Less scrutinizing of their credit and finances, less worry about being denied.

There is also value for the seller in this situation because they are able to sell the home quickly. They will attract a much larger base of buyers, which allows them a better chance of getting a good price for the home and less chance of buyers trying to negotiate down the price.

The negatives of owner financing for a seller are that they don’t get completely out of the house. Many people have the attitude that they don’t want to go thru all of that they just want someone to come in and buy their house now. That may be the case but this is a way to sell your house faster and get an above market asking price.

Finally, look at what you gain versus what you lose with owner financing to figure out if it is right for you. You gain your house being sold. You gain not making an extra mortgage payment. You gain a possible cash flow from selling the house with owner financing. You gain the peace of mind of not having to sell your house for a loss.

Take all of this into consideration and decide for yourself. Do you really want to just sit on the house and wait for that perfect buyer? Until Next week, Good luck and God bless!

Arthur V. Veal IV is the owner of We Buy Houses Home Services, a real estate investment company. They specialize in buying houses on terms. Find out more about their programs by visiting their site at

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