There is a fairly new trend in town and it has affected homes in Austin and the area real estate market. This trend is known as owner financing and the trend is being picked up at the speed of light by the real estate market in Austin. Owner financing simply refers to the act of the home owner financing their house to the potential buyer. The buyer will then occupy the house and start paying monthly installments which have been agreed upon in the purchase contract and are outlined in the lien note. (What is Owner Financing – Click for VIDEO) This arrangement has advantages and disadvantages for both parties. However, in a slowly improving economy, it might be the best option for all parties concerned.
With owner financing, homes in Austin have been selling like hot cakes, further showing how the trend has helped to boost the real estate market in Austin. This might help to explain why the real estate market in Austin has not been affected negatively by the economic recession and faded into oblivion like other real estate markets in many other parts of the country. Buyers of Austin luxury homes have been enabled to buy homes that were previously out of their financial ability only because they required a large upfront down payment. (See a few homes SOLD by Forte Properties with Owner Financing.)
People with homes in Austin have seen the light of this arrangement and have given it their seal of approval. A home seller in Austin will not have to struggle after selling his home to a potential home buyer. This is due to the fact that the home seller can charge interest on the amount of money advanced to the buyer for buying the home. This means that in reality, the home seller was acting like a bank when they agreed to carry back the balance of the purchase price minus the down payment to the home buyer. This means that they will be receiving monthly installments for a very long period of time and in the end will get more money than was slotted for the sale of the house.
Although selling and buying owner financed homes has been around for many years, owner financing is really starting to pick up and in no time will certainly establish itself firmly in all real estate markets in the country.