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 ?
HOT*Preschool and Childcare Center with seller financing in eastern Hillsborough County for sale with SELLER FINANCING that is very clean and has been established over 26 years with RE included.
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.
SOLID BUSINESS WITH SOLID FINANCIALS AND SELLER FINANCING 11 Year Established Pressure Cleaning Business in Central Florida.
Many prospective buyers are submitting offers with a request for Seller Financing for both first and second mortgage positions.
The Company plans to complete the transaction through payments totaling $1 million and seller financing of approximately $23.
The price for the property is in the $9 million to $12 million range and 65 to 75 percent seller financing is available, according to Jonathan Miller, executive vice president, and Miriam Halpert, a senior vice president, James Felt/Grubb & Ellis, agents for the property.
The purchase price will include; $1,900,000 in cash, $500,000 in short term seller financing, $400,000 in long term seller financing and the assignment to seller of approximately $600,000 in accounts receivable.
SELLER FINANCING & includes $150k+ new equipment & build-out.
Washington County had the lowest level of seller financing at 7.
BUSINESS WIRE)--June 9, 1995--A significant number of California home sales involve seller financing, a real estate information service reported.