When it comes to selling your house in Wisconsin, there are more options than just putting up a “For Sale” sign and waiting for the offers to roll in. While traditional listings and cash offers from real estate investment companies (like ours at Stillwater Properties) are always options, many homeowners overlook a powerful method: owner financing.
Owner financing allows you to sell your property while acting as the lender, receiving monthly payments from the buyer rather than a lump sum from a bank or cash buyer. This strategy can provide consistent income, tax advantages, and even help you sell faster in certain markets. But before you dive in, here are six crucial tips to make your owner financing journey as smooth and successful as possible.
Owner Financing Tip #1: Don’t Focus Only On Price
It’s easy to fixate on the sale price, but in an owner financing deal, price is just one part of a much bigger picture. Yes, you want a fair amount for your property, but don’t overlook the benefits of long-term income. You might find that earning interest over time increases your overall return far beyond what you’d get with a lump-sum cash sale. Think in terms of the deal’s total value, not just the sticker price.
Owner Financing Tip #2: Consider Your Ideal Payment Timeline
Owner financing isn’t just about selling—it’s about planning. Decide how long you’re willing to receive payments. Would a five-year term be enough? Or are you open to receiving income over 10, 15, or even 30 years? Your personal financial goals matter here. Maybe you’re nearing retirement and want to create a stable income stream, or perhaps you’d rather structure a shorter-term deal to free up cash sooner. Be flexible, but know your preferences going in.
Owner Financing Tip #3: Pay Close Attention to the Terms
The terms of the deal often make or break the success of an owner-financed transaction. It’s not just about agreeing on a monthly payment. You need to establish key details such as:
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The amount of the down payment
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The interest rate
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Whether there’s a balloon payment
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Any penalties for early or late payments
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What happens in the event of default
Spelling these out clearly will reduce future misunderstandings and make both parties feel secure.
Owner Financing Tip #4: Protect Yourself Legally and Financially
Even with trustworthy buyers, life can throw curveballs. As the seller-lender, you need to build safeguards into the agreement. Consider holding the title in your name until the buyer pays off the property in full (a “land contract” or “contract for deed” setup). Require the buyer to carry homeowner’s insurance and name you as an additional insured party. Taking these steps helps you maintain control and ensures you’re not left exposed if something goes wrong.
Owner Financing Tip #5: Anticipate the Unexpected with Contingencies
No plan is foolproof. That’s why contingencies are a must. Think ahead: What if the buyer defaults? What if they want to refinance or pay off early? What if your own financial needs change and you want to sell the note or the property before the term ends? Planning for these “what-ifs” in advance makes negotiations easier and prevents confusion down the line.
Owner Financing Tip #6: Hire an Attorney Experienced in Real Estate Transactions
A handshake and a generic contract won’t cut it. Work with a qualified real estate attorney who can help you draft a detailed, legally binding agreement. A professional can make sure your interests are protected and ensure compliance with state and local laws, which vary widely in how owner financing can be structured.
Thinking of Selling Your House in Wisconsin?
If you’re considering selling and are open to creative strategies like owner financing, we’d love to help. At Stillwater Properties, we specialize in helping homeowners explore all their options—including selling directly to us for a fair, all-cash offer. Whether you want a quick sale or a long-term income stream, let’s talk about what works best for you.
Call us today at (608) 523-9807, or click [here] to fill out a quick form. Let’s find the right solution for your situation.