Getting Full Price For Your House: Selling It With Owner Financing In CA – The Step-By-Step Guide

With changes to the economy that we’ve seen in recent years, many homeowners are discovering that there are new ways to sell their home that weren’t available before. If you don’t want to sell through an agent, there are other methods to sell your house – you can sell on your own or you can even accept seller financing. If you’re wondering how to sell a house by owner financing in CA  and how to get full price, keep reading this article and we’ll walk you step-by-step through the process…

So what is seller financing? In a traditional sale, the buyer goes to a bank to get financing for the house. With seller financing, the seller finances the house for the buyer instead of going to a bank. Essentially, the seller acts as the bank. The seller gets a down payment and receives monthly income in the form of the monthly mortgage and the buyer gets possession of the house. Seller financing is a good idea for people who want to sell their house fast, wants to get full price for the house, or wants monthly passive income without dealing toilets, tenants, or trash. So what is the process for seller financing? Keep reading to see the step-by-step process.

Step 1. Determine whether you own the house outright or still have a mortgage

In some states, if you have a mortgage you may not be able to offer owner financing (but you can in other states). Here in California, you can offer owner financing  with a mortgage. So the first step is to determine whether you have a mortgage or not.

Step 2. Talk to a real estate attorney for help in crafting an agreement and a Mortgage Loan Originator (MLO) to ensure state and federal compliance

With seller financing, you are essentially acting like a bank. The buyer will pay you a down payment and then pay you regular monthly payments until the house is paid off, and then it becomes their house. So make sure you talk to a real estate attorney to ensure that you are protected and obeying all federal, local, and state laws while also protecting yourself! (If you need the name of a good real estate attorney, get in touch with us and we can make an introduction.) A mortgage loan originator (MLO) is an institution or an individual who can help make sure that the buyer meets income and credit qualifications. Also, the mortgage loan originator will ensure that the transaction is also compliant with state and federal financing guidelines.

Step 3. Market your house online and offline

Once your paperwork is in place, you are ready to advertise that you have a house for sale. Be sure to let people know that you offer seller financing. Mention this in your headlines to attract more people. There is no limit to how much marketing you should do – the more you can do, the better. Advertise on places like your local newspaper, Craigslist, Zillow, Trulia, etc…

Step 4. Work with potential buyers

As your marketing captures the attention of potential buyers, work with them to show them through your house. When someone makes an offer on your house, negotiate the price and terms with them and find the middle ground that will ensure a win/win situation. You may be able to get full price for your house, if you allow a monthly payment and down payment that the buyer can afford. Buyers are willing to do this because you allow them to avoid the hassle of dealing with a bank. Sign the papers when you and the buyer reach an agreement.

Step 5. Collect the down payment and hand over the keys

Once you agree on a price and have signed the papers, collect the down payment and hand over the keys. In most situations, you will continue to own the house and collect payments until the house is paid off, then ownership transfers to the buyer. (Reminder: keep all documents in a safe place.) It’s that simple! Now you can get monthly passive income while also getting full price for your house.

If you’re wondering how to sell a house by owner financing in CA , we can help. We might be able to offer you some advice or even work out an owner financing arrangement where we buy your house from you. Talk to our team at (323) 825-1441 or by clicking here to fill out the form.


We Buy 1 or 2 Bedrooms, 1 Bathrooms in Bakersfield, Barstow, Desert Hot Springs, Victorville, CA

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