Why ‘Pay Later’ Has Become a Game-Changer for Home Sellers

Deciding to sell is likely one of the biggest financial decisions you’ll ever have to make. It’s also perhaps one of the most daunting, given the long list of costs that can come with the process. But an offering relatively new to real estate, is helping lift some of that financial pressure off sellers. Pay later is fast becoming a popular way for sellers to manage the upfront costs associated with selling, including property improvements and marketing. A concept originally popularised in retail, pay later is reshaping the property sales landscape, offering sellers an innovative yet practical way to fund pre-sale expenses and marketing without paying upfront.

The rise of pay later in real estate

The pay later model has been a game-changer in industries like fashion, electronics, and travel, allowing consumers to purchase goods and pay for them down the line, often interest-free. Now real estate is following suit, and it’s rapidly becoming a preferred choice for sellers.  

Here we’ve rounded up just some of the many benefits pay later presents for sellers:

1. Ease the financial burden of pre-sale improvements

Sellers often find they need to make repairs or upgrades to their property before listing. Whether it’s enhancing curb appeal or updating outdated interiors, these improvements can be costly. A pay later option allows sellers to make these changes without needing to dip into their savings or take out a loan with their bank.

With Property Credit, sellers can present their homes in the best possible light by drawing from the equity in the property they’re selling. They can attract more buyers and list at a potentially higher sale price without having to manage any upfront costs.

2. Maximise property value with targeted marketing and staging

Effective marketing is key for a successful sale. Generally, sellers invest in professional photography, online advertising, and property staging to make their home stand out. However, these services can add up quickly.

In the past, extended ‘interest-free’ furniture packages were often the popular choice for staging a home prior to sale. However, choosing to finance furniture packages can affect credit scores which can cause major stress if the seller’s borrowing capacity suddenly comes under review.

Property Credit allows sellers to tap into the equity of their property for staging and styling now, empowering them to make the best possible first impression for potential buyers.

3. Keep the selling process moving smoothly

By using a pay later option, sellers don’t have to wait for property settlement to begin improvements or marketing. This flexibility enables them to take immediate action, without the burden of upfront financial constraints. Time is money, and delays can create a ripple effect, leading to further setbacks down the line.

Property Credit is there for sellers every step of the way. Each stage of the property sale journey presents another opportunity to access equity. Once a facility is established, Property Credit’s flexible funding options allow the seller to access funds once-off or throughout the sale should they wish to access it. Property Credit even handles repayment on the day of settlement via a fully automated system so sellers have one less thing to manage.

4. Increase chances of achieving a higher sale price

Properties that are well-maintained, staged professionally, and marketed effectively tend to sell faster and for higher prices. By using pay later to fund these key areas, sellers increase their chances of achieving a higher sale price. The ability to invest in improvements and professional marketing efforts positions a seller’s property to attract more interest and potentially multiple offers.

How it works

Unlike traditional bridging finance, Property Credit’s short-term solutions offer more flexibility and simplify the sale process. Sellers can use the equity in their property to fund everything from marketing costs to pre-sale improvements, and even a deposit for their next property. Funds can be accessed at any stage of the property sale process and once the property settles, the loan is repaid from the settlement amount.

Why agents love pay later in real estate

What works for sellers works for agents!

With Property Credit:

• Payments can be made via a simple referral form, and Property Credit handles the application process.
• Agents can offer their clients three payment options, including credit card, direct deposit or pay later.
• Agents can easily generate and send invoices.
• All marketing funds are deposited directly into the agent’s account.

Pay later helps agents secure more listings while adding value for their clients. With fewer concerns about who covers the costs, agents can focus on selling rather than managing payments.