Florida Seller Financing Can Be a Powerful Inducement
October’s Mortgage Credit Availability Index shows a slight relaxation in lending standards — but as most Florida home buyers and sellers will agree, getting a mortgage is still difficult. With mortgage availability bench marked at 100, although it’s currently at 111 ½, compared with the 800 it stood at in 2007, today’s is still a tough environment.
That’s why Florida seller financing is being considered by more homeowners. When a home is owned outright, seller financing can draw a higher selling price (with future interest payments as a bonus). But before making such an offer, Palm City, Port St Lucie and Stuart homeowners need to consider all of the ramifications: there is more involved than just the assumption of added risk.
Of course, ordering and examining a buyer’s credit report is the starting point. If the story it tells needs too many explanations, it’s time to walk away. Foreclosing on a seller-financed home can be more difficult than through a traditional foreclosure —particularly if the financing documents are substandard.
At first blush, seller financing might seem to simplify the whole transaction, but in fact some details usually handled by a bank must be hammered out:
· Who will pay for the appraisal; who for the inspection?
· Who is going to be responsible for property taxes and upkeep?
· Will the deed be transferred to the buyer right away, or only after the home is paid off?
Those issues point out why a “handshake deal” can’t be recommended for a Palm City, Port St Lucie and Stuart seller financing arrangement. Just consider the last two points: if the deed hasn’t been transferred and taxes are in arrears, whose credit is harmed?
A good Florida attorney will draft an agreement that nails down responsibilities and penalties for a buyer default as well as a detailed payment structure. A well-drafted seller financing agreement protects both parties by preventing misunderstandings and providing an unambiguous inducement for good behavior.
Given the right buyer, clear communicating and a framework cemented by the proper paperwork, Palm City, Port St Lucie and Stuart seller financing can provide the missing element that makes a sale possible. If you will be listing your own Florida home this fall, when you give us a call, we can discuss many of the different paths to success.
Having the right Florida real estate agent means having an agent who is committed to helping you buy your new home with the highest level of expertise in your local market. This commitment level has helped Bold Real Estate Group build a remarkable track record of delivering results.
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About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties. Millie is fluent in English and Spanish with a strong network of real estate professionals worldwide. Other post by Millie Gil