Whether you are buying or selling Portland Real Estate you should be informed on a beneficial option: seller financing.
Seller financing is a loan provided by a seller of a property to the buyer. Both the buyer and the seller stand to see financial benefits from this arrangement. The seller has the opportunity to negotiate a higher selling price and a higher interest rate, and the chance to make a higher return on their investment. The sale of the house could also be negotiated “as-is” which would save on repair money for the seller.
There are some risks, however. It can be a good idea to require the buyer to buy PMI insurance to protect against a possible default on the loan. There is the risk that the buyer could end up abandoning the property if they had a low down payment and thus a minimal investment on the property. It’s important to work closely with the buyer to make sure the terms are good for everyone.
