Hamptons brokers say they are seeing increased interest in seller financing, also called owner financing, in which the seller acts as a bank and holds the paper on the buyer's purchase.
Owner financing is a less traditional method that has distinct benefits for the seller, said Adam Miller, a real estate attorney at the Bridgehampton-based Adam Miller Group.
Mary Slattery, a Southampton-based associate broker at Corcoran, said last month that she had worked on two Hamptons deals involving owner financing after lending tightened in September.
Owner financing "really helped the property close."
She was also working on another listing where the buyer was in the middle of negotiating owner financing. For both properties, the sellers chose to offer that financing option rather than lower their asking prices, Slattery said.
But seller financing has "been discussed more than it's been implemented" so far, said Miller the attorney, who added that he may soon offer an owner financing seminar for Hamptons brokers.
But Michael Daly, principal broker at True North Realty Associates, said he has seen a decrease in owner financing in the Hamptons since last fall.
Sellers are still too nervous about the economy to turn en masse to owner financing, Daly said.
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