Finding Homes with Owner Financing in Southeast Texas
August 31, 2011
The topic of owner financing is a popular one. In fact, the posts on the blog that get the most responses tend to be the posts about finding homes that offer owner financing. We all know the banks and big lenders are harder to work with than ever. Qualifying standards haven't been this strict in years. This has led to a group of potential home buyers that can't buy a home through the traditional lenders.
The only hope for these buyers is Owner Financing. From time to time, it is interesting to see just how many home owners that are trying to sell their homes are willing to offer owner financing. Take a look at this chart.
Out of the 2,700 plus homes that are for sale through the Beaumont MLS, at this time only 41 offer owner financing as an option for the buyer to purchase.
"Just less than 2% of all homes listed offer owner financing at this time."
Here's 3 other noteworthy statistics about homes that offer owner financing in the Southeast Texas real estate market:
- The average price is $138,430
- The average days on the market is 153 which is a little higher than the overall average number of days on the market.
- You can buy new construction with owner financing through a few home builders.
Kelley Family Investments is building new homes in Wolf Creek. This builder offers owner financing. His terms are pretty reasonable. Home prices are in the middle 100's.
Three other things to think about before you buy a home with owner financing:
- Sellers are going to charge a higher interest rate than the banks. On average expect to pay 7-10% in interest.
- Every seller can set their own terms. For example, some sellers may finance for 20 years. Others may want a payoff in 5 years with a balloon payment.
- As a buyer will you pay for an appraisal? Its not a requirement with owner financing
There are a lot of things to consider when you decide to look for homes that offer owner financing. . With only about 2% of the homes for sale in Southeast Texas even offering owner financing, its not an easy way to find and buy a home. It can be done but be prepared for the challenges.
