Are you considering selling your real estate note in Texas but wondering how the type of property will affect its value? If so, you are not alone. At Kodiak Bear Group, we receive many inquiries about the difference in value between a real estate note created for a single-family residence versus vacant land.
Firstly, if you sold a property and offered owner financing, you can sell the loan you created for the borrower. However, the amount an investor, such as our company, will be willing to pay will be affected by the type of property. A real estate note created for a single-family residence will generally be more valuable than one created for a vacant piece of land.
Why a Single Family is worth more than Vacant Land
The reason for this difference in value is that in the event of default, a single-family residence is more likely to retain its value than vacant land. As you can imagine this is because the house that was financed can be taken back and re-sold. With Vacant land, since there are no improvements it can be more difficult to resale the property. Land that is located in more desirable locations will be worth more. If the lot is in a very rural area this can also affect the value because the highest and best use will be limited. This means that a real estate note created for a single-family residence is generally considered to be a safer investment than one created for vacant land. As a result, investors are usually willing to pay more for a real estate note created for a single-family residence.
What to do if you want to sell
If you are looking to sell your real estate note in Texas, it is important to consider the type of property it was created for. While it is possible to sell a real estate note created for vacant land, you may receive a lower offer than if the note was created for a single-family residence.
At Kodiak Bear Group, we can provide you with a free quote for your real estate note, regardless of the type of property it was created for. We are a local small business located in Houston, Texas, and we pride ourselves on providing sellers with options they did not know they had. Contact us today to learn more about how we can help you sell your real estate note and get the cash you need.
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