Seller financing in a seller's market?

Seller financing in a seller's market?

Member since 2021 · 39 posts · 29 votes

Hello,

I do not approve for conventional financing currently and the best current option for me is looking for seller financing. I know that this is very tough in a seller's market, and several real estate agents have confirmed that much. It seems like it is something you need to aggressively search out. Would it make sense to call the seller's agent on online listings and inquire about whether the seller would think of financing? The realtors I've talked with don't really want to get caught up with all that, I think, because I'm looking at a low price point and it would be a ton of work for them with no pay and only a slight chance at a future sale, again for a low priced house. 

But I'm sure if I called the seller's agents myself and got a few leads they may be personally more invested in negotiating for me if I did the initial leg work? Thanks!

- Sean

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  • Member since 2021 · 39 posts · 29 votes
    5y

    I'm also now thinking the best way to do this might be driving for dollars and looking to talk to seller's who don't currently have their homes listed on the market. Would love to get some insight. 

  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Why do you think that the agent wouldn't get paid with an owner financing transaction? They're typically collecting their commission when the sale occurs. Are you actually looking for lease/option deals, or are you trying to to 100% owner financing so there is no cash for the agent? In my market (San Antonio) there are a decent number of properties listed with owner financing. The downside is that most of those sellers charge 8%+ interest.

    Joseph Cacciapaglia powered by Morty
  • Realtor · Chicago, IL · Member since 2019 · 274 posts · 191 votes
    5y

    @Sean Martin- Driving for dollars is a wonderful idea for this situation. 

  • Member since 2021 · 39 posts · 29 votes
    5y

    Thanks Olivia! It makes sense.

    Joseph- I would be putting down probably about $10-20k and finance the rest. 

    Also, I know there were talks after 2008 about not allowing seller financing for primary residences. Does anyone know if that's the case? If not, it's possible I would like to try and finance a future primary residence this way as well.

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