Most people find the home selling process in Arizona overwhelming. Besides the fact that they have to get the property cleaned up, fixed up, do paint-touch ups, and other chores necessary to get the house listed, there is always the lingering concern about what price the market will bear and how much it will eventually sell for.
The dilemma comes from the fact that the list price is not always the sold price. Does an Arizona homeowner want the house to sit on the market longer for the “RIGHT” price or is the owner flexible on price and wants to get the house sold as soon as possible? A home is one of the largest investments people make in their lifetimes. It’s no wonder anyone selling their Arizona home will want to get the highest price possible. Most homeowners and even experienced investors, however, aren’t aware of a simple technique which could potentially get more money for the homeowner than the property is worth. It doesn’t work in every market, but savvy Arizona homeowners have been using this technique for decades.
Seller carry-back or some people refer to it as take-back financing, has been a surefire technique used by many homeowners in Maricopa County. Most people trying to sell their home have never even heard of this powerful tool. According to the United States Federal Reserve, there are approximately 100 billion dollars of such carry-back loans in existence. This number has been growing exponentially as more and more homeowners not only in Phoenix, AZ have started using it, but people all across the country. It offers many benefits to both the buyer and the seller. A seller-carry back loan is created when the seller of the property in Arizona sells the property but becomes the lender to the buyer. The seller can carry the entire amount of the mortgage or a part of it. In effect, the seller of the property carries a certain amount of the loan while a bank carries the rest of the balance. The loan is always secured by the real estate. The great thing about this technique is that the interest that the buyer pays is fully negotiable by the buyer and the seller. The rates may vary according to the current economy and can provide buyers opportunities that are not available from the traditional banks. The seller benefits in that they receive steady monthly payments. If they were to ever sell the note, they will get lump sum cash from a note buyer.
Regardless of the current real estate market conditions, seller carry-back loans provide both Arizona buyers and sellers of real estate options that otherwise would not be available to them from traditional banks.