How to Sell a Home You Bought Outright

Buying a home outright offers advantages when it comes time to sell.

Someone who purchases a home outright is generally known as a "cash buyer." Buying outright does away with the loan clauses in the real estate contract, speeding up the deal. However, selling the home takes planning and preparation. Gathering your paperwork, going through it and ensuring you have everything you need for the transaction is a good first step in the right direction.

Instructions

1. Check the land records at your county courthouse to learn if the mortgage company has released the lien on record. If not, file a "Certificate of Satisfaction," or your county's equivalent, with the county. If the title company has to take extra steps to verify the chain of title during the sales transaction, it may slow down a sale.

2. Ensure that you have the deed to the property. Some lenders neglect sending this to homeowners, but you will need it to sell your home. Call your mortgage company and ask that it be sent to you, stamped "paid and canceled."

3. Price your home low and ask for a quick closing if you need to sell it quickly. If the house is worth $200,000, price it at $185,000. Sellers who don't need the proceeds to pay off a mortgage are in a better position when it comes to pricing a home for a quick sale.

4. Save money and make more money off the sale by offering seller financing at an attractive rate. Seller financing offers several benefits, including the possibility of paying less in taxes on any gains you may incur. You can also set a higher-than-market-value price for the home, with the financing acting as incentive to the buyer.

Tips & Warnings

• Speak with your accountant or tax adviser about the tax implications of owner financing.

References

• InmanNews; Must-Do's After Mortgage is Paid Off; Benny Kass; March 2011
• CREOnline.com; The Benefits of Owner Financing for Sellers and Buyers; William Bronchick