One way of selling a home in the Sydney market its through seller finance. This option offers advantages to both buyers and sellers. It can also speed up the sale of a home. This is a good option for those who need to relocate quickly for a job. Seller finance in Sydney is also useful for buyers and sellers, when the asking price is higher than the price valued by conventional lenders.
Many homes for sale in Sydney markets have a seller finance option. Sellers realize traditional financing is not always the best solution and may not work for some buyers. If a buyer has only been on a job for a short time, this can be a good alternative to bank financing. A potential buyer may have a blemish on the credit report which prevents bank financing. A seller may be willing to overlook a less than stellar credit report.
If the bank values a home lower than the asking price, seller finance can help. The seller may allow the buyer to pay the difference over time, while the buyer makes smaller monthly payments. This option can also be good for potential buyers who don’t have enough money for the entire down payment on a home.
Buyers looking for options other than the terms nearly all lenders will offer, may find seller finance gives them more choice. They can find sellers and properties with monthly payments that are more manageable or fit their situations. Buyers can also avoid the lending fees and stamp duty. These additional costs can make buying a home more difficult, when buyers must also have a suitable down payment.
In the Sydney region, lenders may be unwilling to finance certain properties. They may not lend to buyers looking in a smaller surrounding town, especially if the population is less than 10,000. Some lenders will lend a smaller proportion on rural properties and farms, as opposed to lending nearly the entire price on a city property. Rural property owners may wait a very long time for a cash offer on their farm or rural home. Seller finance allows them to find suitable buyers in less time.
For investors, seller finance is a good way to go, because less money is required initially. Investors can use the rest of the money they have immediately available, for renovations and necessary updates to the property. The investor who makes desired improvements can then go to a lender and get a loan for a higher amount, because the home is valued higher with the improvements made to the exterior or interior.