Finding Homes For Sale With Seller Financing - Part 2

Published by peter | Filed under Buyer / Seller Tips, Real Estate

Continuing our discussion…I was looking through a list of topics and found one that really stood out: how to find homes for sale where the seller was offering some or all seller financing. Most people do not realize that even buyers with perfect, plentiful credit can benefit from seller financing when they purchase their next home. I try to counsel home buyers into understanding that the real estate transaction is much more than just “purchase price,” rather it is about the entire structure of the terms of the deal.
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Consider this question …“Would you buy a $10M home if I could show you how to finance it for just $500 per month?” While I do not know what your answer is, but mine will always be “heck yeah!” I would love to live in a big castle for only $500 per month. Unfortunately, I do not know how to do that at this time, but it does demonstrate that price is only one element of the deal.Owner financing, with some creative application, can help many people buy some or more home. The owner financed portion of the deal could be an amount equal to what is required by a mortgage lender for the down payment (for example, on a $250K sale, the owner could hold a $50K second mortgage while a mortgage bank does a new first mortgage for $200K).With no down-payment needed, many more people can qualify to buy that home. Don’t forget, this year in Tampa Bay, we are seeing a high failure rate of homes on the market.
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Every special skill or tool a home seller can implement might be the difference between selling their home or just being another statistic on the failed to sell list. Most home sellers never even consider offering seller financing to the prospective buyers of their home. This is a shame. It is too bad that their real estate professional did not spend whatever time required to get them to understand the importance of offering seller financing as one option for all prospective home buyers. All prospective home sellers should educate themselves on creative solutions for selling a home.
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To be continued…