Seller financing is when the property owner acts as the bank and allows the buyer to make payments over time instead of paying all cash at closing.
A flexible way to sell a free-and-clear property while potentially achieving a higher price and ongoing income.
Tell us about the property and what you would like to accomplish.
Seller financing is a real estate transaction where the seller allows the buyer to make payments over time instead of requiring the entire purchase price in cash at closing.
Instead of obtaining a traditional bank loan, the buyer makes payments directly to the seller under agreed financing terms.
Seller financing is most common when the property is owned free and clear without an existing mortgage.
Seller financing may allow a seller to achieve a higher purchase price compared to a traditional cash sale.
Instead of receiving all proceeds at closing, the seller may receive monthly payments over time.
Interest rate, amortization, down payment, balloon payment, and monthly payment terms are all negotiable between buyer and seller.
Seller financing may attract buyers looking for flexible purchasing options or buyers seeking alternatives to traditional financing.
At My Fair Market Offer, seller financing is generally used on properties that are owned free and clear without an existing mortgage.
Similar to wrap mortgages, seller financing allows flexible terms to be negotiated based on the property, seller goals, and overall structure of the deal.
Depending on the situation, we commonly look for:
These flexible terms may allow us to pay closer to retail pricing or sometimes above traditional investor pricing.
Seller financing can create strong alignment between buyer and seller because everything is clearly documented in written loan agreements.
The seller maintains contractual rights if payments are not made as agreed, which can provide stronger protections and accountability compared to informal arrangements.
We believe accountability matters. If we agree to make payments over time, we want the seller to have enforceable legal rights and protections under the agreement.
Seller financing can also allow more flexibility in structuring payments, purchase price, down payment, balloon terms, and timelines compared to traditional financing.
We generally require a third-party loan servicer for seller-financed transactions.
The servicer collects payments, tracks balances, maintains payment records, and provides documentation for both parties.
This creates a cleaner paper trail, improves organization, and helps protect both buyer and seller.
Seller financing transactions can involve important legal and financial considerations including promissory notes, mortgages, balloon payments, foreclosure rights, servicing agreements, insurance obligations, and tax consequences.
Buyers and sellers should carefully review all documents and are encouraged to seek independent legal, tax, and financial advice before entering into any seller-financed transaction.
Every property, seller, and financing structure is different.
Tell us about the property, goals, and financing situation.