Definition of Seller Carry/Owner Carry:  In the most simplest of terms the seller/owner acts as the bank and provides the financing to the buyers.  The terms and payment schedule are agreed upon with both the seller and buyer.  It is very much like any real estate transaction but with out the use a traditional mortgage broker or bank.

*Look for these words, phrases and acronyms to identify seller financing as an option: Seller Carry, Owner Carry, Seller Financing, OWC, SWC, SF, SC.

 

There are advantages for both the seller and buyer to seller financing:

 

Buyer’s Advantages:

Buyers with not so perfect financial pictures can get into a property.

Buyers who have been told they have to wait 2-3 years to improve a past problem can now get into a home quickly

 

Seller’s Advantages:

Seller is able to increase the pool of buyers in today’s slow selling market

Seller can earn money on the interest charged instead of the bank

 

Risk for both Buyer’s and Sellers:

 

Buyer’s Risk:

Buyer may have to pay a higher price home and interest rate for the loan to have the opportunity to own

 

Seller Risk:

Seller is taking a higher risk on buyers with poor financial history

 

With that being said it is always good advice to have a real estate professional and or an attorney review the terms and conditions of the financing.

 

In today’s real estate market place with tougher credit conditions & slow selling market, seller financing is becoming a popular way to finance real estate. 

 

Real Estate Brokers have the ability to advertise your home on Broker MLS websites offering seller financing as an option with can increase the chances of getting the home sold quickly.