Finance Hot Trends

There is no secret way to finding homes which the seller is offering financing options. Everybody knows about some of the sites that specifically only list properties that are being sold with seller financing available. But what about the other 99% of homes that are not listed with those sites? How do you know if the seller is willing to Finance part or all of your down payment?

There are a few key factors that help decide whether or not the seller will want to carry some sort of note on the house. The first and the most important is the sellers financial situation. If they are heavily leveraged and dont have a lot of equity in the property, then seller financing would probably not even be a possibility on their part. If they need the cash quick, whether it is for a 1031 exchange, a new boat or car, or to help bail them out of a sticky situation, they probably wont be interested in carrying a note. The sellers financial needs typically come before your financial needs. If you cant make the deal happen without getting them to Finance part of it, they will probably end up simply finding a different buyer.

The next factor which will help show whether seller financing is going to play a role is the market condition. If the market is sour and prices are dropping, a seller might be more willing to offer favorable financing terms to help give his or her property the advantage over other properties in the market. If the market is going strong and sales are happening right and left, you can expect to have a little more difficult time trying to negotiate some sort of owner Finance deal.

Another determinant of seller financing options is the owners willingness to assume risk. There is inherent risk in carrying a note, and often times the owner wants to completely get out of the property and not have anything to do with it in the future. Some sellers are selling due to retirement, so they might want to move their equity into something less risky such as a bond, CD or savings account.

In order to find out if a seller is interested in offering financing, the best thing to do is just ask, or write it into your offer even if you dont want it. Use it as a negotiating strategy. Say that you will pay a certain price if they carry a note for x dollars at y interest rate for z years. When they say that they arent interested in carrying a note, you say OK fine, but then we are going to have to bring the price down a little bit.

Even if you dont need the seller financing, just throw it in there to help justify a price reduction. If they are willing to carry a note, you can negotiate further on the terms of the note, and if you dont get what you want, again, you can use that to justify reducing the offer price further. Worst case scenario is that you get a great low-interest loan from the seller to help cover your down payment and minimize your capital investment!

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To browse properties for sale with FinanceDeals.com">Owner Financing available, visit: FinanceDeals.com"> FinanceDeals.com">http://www.OwnerFinanceDeals.com .

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Tags: Owner Finance, Owner Financed Properties, Owner Financing, Owner Will Carry, Seller Finance