seller financing

Seller financing

Funding a purchase by a seller's loan to the buyer, the buyer takes full title to the property when the loan is fully repaid.

Seller Financing

An agreement between a buyer and a seller of an asset, usually real estate, where the seller directly holds the debt. That is, rather than going through a financial intermediary such as a bank, the seller and the buyer conclude the transaction and the buyer makes payments on the asset at the agreed-upon rate of interest directly to the seller. This is useful for the buyer when he/she could not otherwise obtain financing. It can also be useful because the interest rate is often lower. Likewise, the seller can often receive a higher return on the sale of the house because he does not have to pay commissions or other costs to the financial intermediary.

seller financing

The practice of a seller of real property holding some or all of the debt necessary to purchase the property. It is widely believed that seller financing is the last resort of borrowers who cannot obtain financing elsewhere,and the last resort of owners who cannot sell their property without offering it to buyers who cannot obtain financing.In reality,many property owners prefer to finance the sale of their properties,thereby earning a better rate of return on their money than if they obtained cash and then attempted to invest that cash in the marketplace.By the same token, many purchasers are able to secure somewhat cheaper mortgage loan interest rates than generally available in the marketplace if a seller will hold the financing.

References in periodicals archive ?
Best Money Maker Shell Gas Station, located at busy road in Orange county SELLER FINANCING IS AVAILABLE.
Nearly one in three (31%) US-based prospective buyers said they expected to raise finance through seller financing - whereby the seller plays the role of a bank and accepts payment of a portion of the asking price by instalment - compared to only one in 25 (4%) buyers domiciled in the UK.
With third-party financing so hard to secure, most business owners have turned to seller financing as a way to close the sale of their businesses.
Under the right circumstances, seller financing can provide an attractive solution.
a Florida Corporation ("CAG"), announced on January 5, 2009, that it has reduced its seller financing interest rates for its new resort Luxury Intracoastal Waterway Residential Condominiums in the Marina Communities at The Palm Coast Resort, Palm Coast, Florida, and Callalisa Villas, New Smyrna Beach, Florida.
March 15 /PRNewswire/ -- Small business owners are finding that given the current market, offering seller financing can help sell their business.
Many prospective buyers are submitting offers with a request for Seller Financing for both first and second mortgage positions.
Individuals and sellers that furnished private financing accounted for 5% of all deal volume, reflecting the continued prevalence of seller financing in this space as well as the market's overall fragmentation.
Price is $425,000 cash, or $450,000 with $350,000 down and seller financing with terms to be negotiated.
Seller financing could be the solution that gets everyone what they are looking for.
We met the seller's price expectation and made the acquisition feasible for the buyer with creative seller financing," Trionfo said.
In a seller carryback transaction (also known as seller financing or private party mortgages), the seller acts as a full or partial lender, and carries a loan on the property.