Corder's Corner

Got Options?

Looking for ways to get your property sold? You can help your listing’s appeal by putting yourself in a buyer’s shoes. Think like a buyer. Interest rates as of the 29th of August for a 30-year fixed mortgage is 7.54%. As a seller, you are trying to get top dollar for your listing. Buyers may be inclined to more negotiations because of the higher interest rates. Corder and Associates have creative ways to sell your property, and you can earn more than the selling price. If you were buying land in Montana, Wyoming, Colorado, or North Dakota, would you likely choose owner financing if offered? According to LandThink’s survey, 76% of respondents will probably select owner financing if offered. 17% indicated they would be somewhat reasonable. What makes owner financing a good choice?

Owner financing still produces a property sale but without the third-party lender. Essentially, the seller acts as the bank holding the note while the buyer pays directly to the owner with interest. The buyer and seller agree on details such as how much will be financed, the interest rate, how much monthly payments are, and when it will be paid in full. Legal assistance is required to outline and draw up the documents. The paperwork is standard and protects everyone involved with the land transaction.

The seller takes on some risk with this option, but it allows a buyer to purchase land without obtaining financing, which can be difficult to secure on raw land and sometimes requires at least a 20% down payment. The beautiful thing about owner financing is its flexibility and opportunity to be creative.

As realtors, part of marketing your land is presenting it with the most appeal and intrigue possible. If we can market your property with the option of owner financing, that is one more way to offer some advantages for the buyer to purchase your property. For example, owner-financing doesn’t coincide with the stringent regulatory scrutiny that traditional lenders often do. Sellers can still check credit scores and other things the way a bank would, but they can decide to continue with a transaction if they are highly motivated.

In addition to the flexibility on qualification, the down payment is also flexible. Things to consider when running numbers for a significant down payment: The down payment will cover transaction fees, abstract office fees, and realtor commissions. The down payment is often less than 20% of the sale price and thus more manageable for the buyer. The transaction is much quicker than if a lender had to process and run paperwork through. Closing can happen within two weeks after the offer is accepted.

Furthermore, negotiations are still a big part of a deal involving owner financing. The possibilities are endless, and with the help of an effective realtor, terms can include whatever you’d like, such as whether the interest rate will remain the same or change throughout the loan term. A buyer’s unique situation can be handled, and you can procure a sale! Lastly, closing costs are much lower than with a traditional mortgage lender. There aren’t administration fees, processing fees, or appraisal fees.

Ultimately, purchasing your dream acreage can be attainable with owner financing. Owner financing offers an alternative for unique situations of that of the buyer or seller. Sometimes, the seller benefits from accepting payments rather than the lump sum for tax purposes. Talk with us today, and we can help you decide if this suits you!

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