An owner financed deal will be supported by a Real estate agent or Real estate lawyer. We recommend using Boardwalk Premier Realty INC Steve Vennemann. Specializing in contract for deed financing and properties for over 20 years. Located in the Twin cities metro area.
The promissory note outlines the terms of the deal including the interest rate, repayment schedule and the consequences of default. To protect from default the owner also keeps the property title until all of the payments have been made.
The buyer will want to have a home inspection.
A knowledgable Real estate Broker “ Steve Vennemann” 651-334-8312
The seller usually lays out the terms that works for them.
Being they are acting as the bank to finance the house for the buyer they can charge the rate-how long they want to finance the property and amount down they want.
Now the trick with that is the sellers need to offer terms that work for both parties or the buyer will not want to buy the homes. If the seller offers favorable terms such as 10% down 5-6% interest they have a great chance of selling their property. The better terms for the buyer the faster the house-Condo-Town homes-lake houses ect will sell. If you are a seller “ DO NOT ASK FOR 50% DOWN” No buyer is going to pay a high rate and 50% down. Save your self the time and offer flexible terms so you can sell your home fast in which will save you money on a mortgage if you have one and holding the property expenses such as heat-electric-yard work or an association if you have a condo or town homes-lake property.