Back then, major newspaper real estate classifieds were sprinkled with ad copy proclaiming OWC, meaning "owner will carry." Although today's real estate market is different, there are still similarities between the 1970s and now. For example, inventory was excessive. Buyers were scarce. Those who were in the market to buy faced financing challenges due to tightening of credit. And days on market exceeded 30.
If you're having difficulty selling a house, advertising that you are offering owner financing might help move it. Buyers like owner financing for a variety of reasons, and not necessarily for those involving bad credit. That's because a buyer can have stellar credit but still be unable to qualify for a loan due to debt ratio requirements or time on the job.
Buyers who utilize owner financing find they are saving on closing costs because they aren't paying loan points or lender fees. Sellers might offer a lower interest rate to the buyer than a buyer would get from a conventional lender, and the term of the financing can be negotiated between the seller and buyer . . . read more about owner financing.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
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