Seller—Financed Real Estate


Global Real Estate Advisor

ONE Sotheby’s International Realty

[email protected]


Seller-financing may not be as well-known an option as securing a mortgage to buy a home. However, this lesser-tagged known option can be a great way for both buyer and seller to complete the transaction and move-in quicker and easier.

How does it work? Seller-financing takes the middleman out of buying and selling a home. Instead of getting a loan from a bank, the buyer borrows the money from the seller to purchase the home. Working together to create a promissory note with the details of interest rates, repayment schedules, and default consequence, there’s more room for both parties to find a plan that works for everyone.

What’s in it for the seller? Offering financing can be a great way to move things along and sell your home faster. Seller-financing sets your home apart from others on the market and opens it up to more buyers. It also not only lessens the time you spend with your house on the market, but gets you payment quicker while minimizing your carrying costs.

What’s in it for the buyer? Move in quicker when you take out the mortgage middleman, you’ll spend less time waiting and more time turning your new house into a home when seller-financing lets you close the deal faster. Seller-financing also allows for more flexibility and savings, not only can the down payment be more flexible when skipping a mandated minimum but buyers can also save on bank fees and associated costs.

Next steps to make it happen. As a seller, you can make sure to add ‘seller financing available’ to your listing, opening your home to more potential buyers looking for this less common option. As a buyer, you can not only look for homes with the option available, but also look into asking sellers for the option. Many buyers and sellers also find it smart to consult with experienced legal and financial professionals to guide them through the seller-financing process and find a contract that works out for their best interested.

There isn’t only way to buy or sell a home, and seller-financing might be a great option for you.

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