A different path to sold

Don’t let rates dictate the outcome of your sale.

Mortgage rates can narrow the path to a sale. Seller financing may give a qualified buyer another way to purchase your home while you receive payments and interest over time. Explore what the terms could mean for both of you.

See what the terms could do

Explore the sale

Same home. Two ways to buy.

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The balance is due then; the buyer may refinance.
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Monthly housing costsUsed in both buyer payment estimates
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Rate uses sale price. Switch to $ for a known annual bill.
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You offer the financing

Seller financing

Buyer cash needed to close—
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Buyer’s estimated monthly housing cost—
Buyer closing costs before credit—
Your costs, fees + credits at closing—
Your cash at closing—
Interest you could receive through the balloon date—

Assumes payments continue to the balloon date in year 5. An earlier payoff means less interest.

Buyer uses a lender

Conventional financing

Buyer cash needed to close—
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Buyer’s estimated monthly housing cost—
Buyer closing costs before credit—
Your costs, fees + credits at closing—
Your cash at closing—
Buyer financing cost through payoff year—
What changes for the buyer

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Monthly difference—Estimated monthly housing cost

Your seller-financed path

How you would be paid

At closing—After entered costs and debt payoff
Each month—Principal + interest received
At buyer payoff—Remaining principal due

Who pays what?Change the amounts and who pays each one

Costs are separate for each path. A seller credit can cover buyer closing costs up to the amount entered; it does not reduce the buyer’s down payment.

Seller financing

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Conventional financing

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Broker compensation

Set the agreed amounts. Choose who pays the buyer’s broker in each path.

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Estimates only. Down payments and closing costs can differ. Monthly housing totals include principal, interest, entered taxes, insurance, HOA and conventional mortgage insurance; they exclude maintenance and utilities. No future rate or refinance approval is assumed. Interest estimates assume payments through the selected balloon date; an earlier payoff means less interest. Interest is income over time, not cash at closing; figures exclude servicing, collection costs, taxes on the sale and the time value of money. Financing documents, existing debt, buyer qualifications and seller credits need professional review.

The idea

Make the path to purchase part of the offer.

With a conventional buyer, a lender pays you at closing. With seller financing, you and the buyer agree on the down payment, rate, payment schedule and payoff date. Your price is paid over time under those terms.

A buyer can bring less cash.

A smaller down payment may make the same home more reachable, depending on the terms and the buyer’s finances.

You can receive interest.

Payments include principal and interest. What you collect depends on the buyer making the scheduled payments and paying the remaining balance.

The payoff has a plan.

At the agreed date, the buyer may refinance into a traditional mortgage to pay the remaining principal. That refinance is subject to approval.

Make the terms as sound as the opportunity.

Review the buyer’s qualifications, existing mortgage, title and lien position, servicing, default protections, taxes and payoff plan with qualified professionals before offering financing.

Your property. Your terms.

Could another path bring the right buyer to the table?

Talk through your property and the numbers with Michael Mechler.

Call Michael