When a homeowner sells their home the traditional way (through an agent), the buyers are typically regular buyers who are trying to get a mortgage to buy a house that they will live in. In some markets, there are a lot of these kind of buyers but in other markets there aren’t as many. And real estate agents typically work with these kind of “pre-qualified” buyers who can get a mortgage through a bank.

However, this method of selling is not without its problems. For example, sometimes you have to wait to see if a buyer can even get financing (and sometimes the financing falls through so you’re forced to keep showing your house to find another buyer).

If you want to increase the likelihood that you’ll sell your house, and expand the range of possible buyers who can buy, here’s a little-known strategy you might not be aware of: sell your house with owner financing.

Owner financing is when a buyer skips the bank and buys directly from you.
In essence, you’re the bank! Just like a bank, you get an up-front deposit and then you get regular payments that pay off the amount owing. In most cases, you hold the title until the house is fully paid off, and then the title transfers to the buyer.