A Win-Win Solution: How Seller Financing Benefits Buyers and Sellers

Owner financing, also known as seller financing or seller carryback, is a creative alternative to traditional mortgage financing

Owner financing, also known as seller financing or seller carryback, is a creative alternative to traditional mortgage financing.

In owner financing, the homeowner acts as the lender, allowing the buyer to pay them directly. This arrangement can benefit buyers and sellers, offering unique advantages and flexibility.

In this article, we explore how homeowners can offer financing to buyers, expanding their options and making homeownership more accessible.

Why Creative Financing Is A Useful Tool

Creative financing is an essential tool for real estate investors because it provides alternative methods to fund and acquire properties beyond traditional bank financingCreative financing is an essential tool for real estate investors because it provides alternative methods to fund and acquire properties beyond traditional bank financing. Here are several reasons why creative financing is important for real estate investors:

  1. Increased Deal Opportunities: Creative financing opens up a broader range of opportunities for investors. It allows them to explore deals that might not be feasible or accessible through conventional financing options. This flexibility enables investors to find unique properties, negotiate favorable terms, and seize opportunities that align with their investment strategies.

  2. Overcoming Financing Obstacles: Creative financing can help investors overcome financing obstacles, especially when they don't meet the strict criteria of traditional lenders. Investors with limited credit history, insufficient down payment, or unconventional income sources can still find ways to fund their real estate transactions through creative financing options.

  3. Flexible Terms and Structures: Creative financing provides flexibility in terms and structures, allowing investors to tailor financing arrangements to suit their specific needs. They can negotiate favorable interest rates, repayment schedules, and other terms that align with their investment goals. This flexibility fosters more innovative and customized financing solutions that benefit both the buyer and seller.

  4. Higher Return on Investment (ROI): By leveraging creative financing strategies, investors can potentially achieve higher returns on their investments. For example, techniques like seller financing or lease options can enable investors to secure properties with little to no money down, thereby maximizing their ROI. Creative financing empowers investors to structure deals in ways that optimize cash flow and profitability.

  5. Diversification of Funding Sources: Relying solely on traditional bank financing can limit an investor's options and expose them to potential funding constraints. Creative financing allows investors to diversify their funding sources by tapping into private lenders, partnerships, crowdfunding platforms, and other non-traditional avenues. This diversification reduces dependence on a single source of financing and enhances financial resilience.

  6. Increased Negotiation Power: When investors can offer creative financing solutions to sellers, it enhances their negotiation power. Sellers may be more inclined to accept offers with favorable financing terms, even if the purchase price is lower than competing offers. This advantage allows investors to secure properties at better prices and terms, leading to improved investment outcomes.

In summary, creative financing empowers real estate investors by expanding their opportunities, overcoming financing obstacles, providing flexibility, enhancing ROI, diversifying funding sources, and strengthening negotiation power. It plays a vital role in enabling investors to navigate the real estate market, unlock potential deals, and optimize their investment strategies.

9 Mistakes to Avoid When Selling Your Home
Selling your home in Tallahassee can be daunting, especially if you're doing it for the first time in more than five years. Do This ...
Should you sell your home or rent it out?
If you're gearing up to relocate, your instinct might be to sell and capitalize on the rising home values. But what if there's an opportunity you haven't considered?
6 Tips For Selling A Home In 2022
This ain't your grandpa's real estate market, the process for selling a home and getting top dollar have changed so much. It starts with knowing the best way to sell your house. There are home selling tips and tricks you can use.
Sellers: Get The Most $ For Your Home
Understand real estate pre-marketing, why it works, and how to sell your house for the MOST MONEY POSSIBLE. Top Tips - Get ready to learn how to sell your house because with pre-marketing in real estate, you can sell a house fast for more money!
Your Home Failed To Sell, Now What?
What to do if your home failed to sell. When your "selling a home process" fails, it's time to start thinking about what to do next.
Top 7 Ways To Market Your Home For Sale Using Technology
Technology has opened up a world of possibilities for homeowners looking to market their property and attract potential buyers. In this video, we'll be sharing the top 7 ways to use technology to market your home for sale.
7 Critical Stages In Selling Your Home
The process for selling a home has changed greatly since the world went digital, but now after a historic sellers' market, today's home selling plan requires adjustments compared to the last few years.
I Asked An AI Why Real Estate Agents Ask Sellers For Price Reductions
If your real estate agent has recommended that you reduce your asking price, there could be several reasons for this suggestion.
Pre-Marketing: Win the Home Selling Race
Are you looking to sell your home for the most money possible in today's fast-paced and competitive real estate market? Then you must consider pre-marketing strategies.
How To Avoid Common Legal Issues When Buying Or Selling A Home
This video examines the most common real estate law problems and provides guidance on avoiding legal issues when buying or selling a home.
Selling A Home In A Strong Sellers Market | AVOID This MISTAKE!
If you are getting ready to sell a home, you must avoid making a horrible mistake that I'm seeing every single day. As we continue in the midst of the strongest seller's market on record, one might assume that a home seller can do no wrong.
How To Use Price Per Square Foot When Valuing A Home
Price per square foot is a measurement of a home's value, but the price per square foot alone is not an effective way to determine the price a home will sell in today's housing market.
Leveraging Seller Financing to Expand Market Opportunities
Owner financing explained, also known as seller financing or seller carryback, is a creative alternative to traditional mortgage financing for real estate.
Biggest Change In Selling A Home Since The Printing Press
Here is the biggest change in selling a home since the printing press was invented. Looking for selling a home process? This is the must-do process to sell a home.
How To Sell Your House Without A Real Estate Agent
This for sale by owner video is about empowering you to make informed decisions on what you’ll need to do to save the commission by selling a house without a realtor.
Selling A Home In 2022? The Most Important Question You Must Ask
There is one singular issue that stands above all others when selling a home in a strong sellers' market. In this video, I walk you through the question and best answer to the most important question you should ask when selling a home.
Get More Money For Your Home
In order to understand how to get more money from a house sale, one must learn about the neighborhood stalker.
Real Estate Negotiation Strategies For Each Market Condition
If you mishandle the negotiation on a home, several things will possibly happen, and all of them are bad. First and foremost, you’ll leave money on the table through either the sales price or the terms that are negotiated. Today, buyers are losing out on homes they want to buy and it’s often due to poor positioning in the negotiation. And while we are in the midst of a historic sellers’ market, I’m seeing sellers leave money on the table even when they have multiple offers! #realestatenegotiation #homenegot
Home Selling Tip: Don't Price Your Home On The 9s!
One of the most important steps in your marketing strategy when selling a home is setting the initial asking price for the home. While I have discussed this in previous videos, today I’m going to discuss a technique that I refer to as pricing on the 9s. It works to reduce the buyer pool for the home seller and reduce’s the seller’s chances of getting top dollar for the home. It is a terrible tactic and works against the seller. If you watch this short video, you’ll understand exactly why it hurts home selle
How Much Margin For Negotiation Should I Include In My Asking Price?
I was recently asked "How much margin for negotiation should I include in my asking price?" This is a common question from experienced home sellers. They have sold homes in the past and understand the negotiation process involves a game of give and take, so doesn’t it make good sense to start with a little wiggle room in your price so that you can give it to the buyer to secure a sale? Here's what you should know. I explain EXACTLY how much margin for negotiation you should add to the price of your home t
10 Home Inspection Issues And Tips
Moving from one home to another has enough stress and chaos built into the entire affair, and the home inspection is often the biggest stressor. Here's how to avoid home inspection stress!
Home Staging Advice For Sellers
Do you wonder how to net more money selling your home? This is one of my top home selling tips. Today's video is everything you need to know about staging your home in order to NET the most money from your sale. ?? Here's a link to our FREE Home Sellers Checklist mentioned in the video: https://www.tallahasseechecklist.com/home-seller-checklist-downloadzh61xghm
What Does A Transaction Coordinator Do?
When you are selling a home or buying a home, a critical member of your support team is your transaction coordinator. Here's what to expect!
Real Estate Appraisal Versus Fair Market Value Of A Home?
What is the difference between a real estate appraisal and the fair market value of a home? If there is one practice that confounds both home buyers and home sellers alike it's the fact that the majority of real estate transactions close at the mercy of an appraisal conducted for a purpose that most consumers do not consider. Understanding these differences will save you money when it comes to buying or selling a home, and it will help you appreciate the need and value of a real estate appraisal. But here’s
First Right Of Refusal Meaning Explained
What is a right of first refusal? What does first right of refusal mean when dealing with a real estate contract? Accepting real estate contingencies without understanding them often causes home sellers problems. I have shared a real-world example of how we handled a first right of refusal real estate contract negotiation, and the decision-making process used to put the home seller in the best situation possible. Pay close attention to this short video and you’ll have a better understanding of the right to
Why It's Alway About Supply And Demand In Real Estate
It's all about supply and demand. The real estate supply and demand dynamic tells us everything we need to know to forecast home sales in any given area.
The Truth About A Dubious Real Estate Statistic
They're Lying! When it comes to buying or selling a home, it's important to recognize false or misleading real estate stats (real estate statistics) that can lead to costly mistakes.
How To Sell A Home That Needs Repairs
How To Sell A Home That Needs Repairs - If you want to know how to sell a fixer upper house fast, then there are some fundamentals of selling a fixer-upper that you should understand. Ideally, in real estate sales, when selling a home, you should bring a house to market-condition before you sell your house fast in order to attain top dollar during the sale. But ideal situations are not always possible. If you follow the tips and advice in this video, you will know how to sell a fixer-upper house fast and in
What Is Pre Marketing In Real Estate When Selling A Home?
What is pre-marketing in real estate when selling a home? When your home hits the market and it "goes live," how many buyers will be standing in line to get in? Will it look like an Apple store on the day the new iPhone is released? If not, why not? ... it's all in the video ??????
What Is A Seller's Market In Real Estate?
You might have heard that we have a huge seller’s market right now in real estate. Do you know what that means? This real estate frequently asked question comes up from time to time when somebody is buying a home or selling a home. They want to know if its a buyer’s market or a seller’s market. Is now a good time to buy a home in the Tallahassee real estate market? I have prepared this short video to demonstrate the conditions that make this a seller’s market, and then we’ll show you the numbers and how we
How Digital Has Changed How We Sell A Home Today
Time to sell a home? The digital age has had a huge impact on what homeowners must do to get top dollar when selling their home. In this video, Joe Manausa explains why and how things have changed, and then lays out the plan for what home sellers must do.
5 Ways To Handle The House In A Divorce
If there is one thing that I see divorcing couples doing wrong more often than not, it is the decision on how to handle the house where the couple has lived. While I am not a lawyer and I'm not dispensing legal advice, take it from somebody who has helped hundreds of divorcing couples, there is a right way (and FOUR wrong ways) to handle the house in a divorce. Tell your attorney that you want to do it right!
Four Smart Ways To Use A Real Estate Contract Assignment
Contract assignability allows buyers to give or sell their rights to another buyer, and that creates opportunity. Tune in to discover four reasons to assign a real estate contract (including contract assignment profits)
Ugly Real Estate Listing Pictures | Real Estate Photography Tips
I’ve got some funny, ugly real estate listing pictures to share with you today, along with some simple real estate photography tips. Take a humorous look at some of the WORST pictures I have seen used when marketing a home ... not the way to sell your house!
How Long Does It Take To Sell A Home In 2021?
How long does it take a home to sell in 2021? I've been asked this question a lot recently, and it made me realize a full explanation was in order. Why? Because if you understood how to sell a home for top dollar, you would know that it is a trick question. Trust me on this. Invest the few minutes it takes to watch the video and you'll have a better understanding of selling a home than do most people in the real estate industry (and I'll prove it!).
What Is A Swimming Pool Worth?
What Is A Swimming Pool Worth? Recently, a customer buying a home asked me a simple question. She inquired “how much does a pool add to the value of a home?” Pretty simple question, right? Well, by the end of this short video, you’ll know the not-so-simple answer (and why this is so important).
Real Estate Is Local - What This Means!
If you plan on buying a home, or selling a home, you’ll want to understand the local nature of real estate and use it to your advantage.
How HGTV Is Like Meth For Homebuyers
This is what I have observed regarding the HGTV impact on buying a home and selling a home.

Installment Sale

In an installment sale, the homeowner agrees to sell the property to the buyer and accepts payment in installments over an agreed-upon periodIn an installment sale, the homeowner agrees to sell the property to the buyer and accepts payment in installments over an agreed-upon period. The buyer takes immediate possession of the property but makes regular payments to the seller, which include both principal and interest.

An installment sale, also known as seller financing,  contract for deed, or land contract, is a financing arrangement in real estate where the seller acts as the lender and the buyer makes payments directly to the seller over a specified period of time. Here's how it works and the benefits it offers to both buyers and sellers:

  1. How It Works:

    • Agreement: The buyer and seller enter into a purchase agreement outlining the terms of the installment sale, including the purchase price, down payment, interest rate, payment schedule, and duration of the agreement.
    • Financing: Instead of obtaining a loan from a traditional lender, the buyer makes regular payments directly to the seller over an agreed-upon period. The seller retains legal ownership of the property until the buyer completes all payments.
    • Title Transfer: Once the buyer fulfills their payment obligations, the seller transfers the title and ownership of the property to the buyer.
  2. Benefits for Buyers:

    • Easier Financing: Buyers who face challenges obtaining traditional financing, such as a low credit score or insufficient down payment, may find it easier to secure an installment sale. Sellers often have more flexible eligibility criteria and may be more willing to work with buyers who don't qualify for conventional loans.
    • Lower Closing Costs: An installment sale may involve lower closing costs since it eliminates or reduces the need for loan origination fees, appraisal fees, and other charges associated with traditional financing.
    • Flexible Terms: Buyers and sellers have more flexibility to negotiate terms in an installment sale. They can customize the down payment amount, interest rate, and payment schedule to suit their specific needs and financial situations.
    • Opportunity for Ownership: Buyers can start building equity and gain ownership rights while making installment payments. This can be particularly advantageous for individuals who want to invest in real estate but have limited funds for a large upfront payment.
  3. Benefits for Sellers:

    • Attract More Buyers: Offering seller financing expands the pool of potential buyers, as it attracts individuals who may not qualify for traditional loans. This increased buyer demand can help sellers negotiate higher prices with all parties and sell their properties more quickly.
    • Steady Income Stream: Sellers receive regular payments from the buyer, creating a predictable income stream. This can be beneficial, especially if the seller doesn't need the entire sale proceeds upfront or prefers a consistent cash flow over time.
    • Potential for Higher Sale Price: By offering installment sales, sellers may have the opportunity to negotiate a higher purchase price or charge a higher interest rate than they would in a traditional sale. This can potentially increase their overall return on investment.
    • Flexible Exit Strategy: If the seller is not in immediate need of the full sale proceeds, an installment sale allows them to defer some tax obligations and potentially spread out their tax liabilities over the duration of the installment payments.

In summary, an installment sale in real estate provides an alternative financing option where the seller acts as the lender. It benefits buyers by offering easier financing, lower closing costs, flexibility in terms, and an opportunity for ownership. Sellers benefit from attracting more buyers, steady income, the potential for a higher sale price, and a flexible exit strategy. Overall, an installment sale can be a win-win solution for both parties involved in a real estate transaction.

Lease Option / Lease Purchase

In a lease option arrangement, the homeowner leases the property to the buyer with an option to purchase it within a specified time frameIn a lease option arrangement, the homeowner leases the property to the buyer with an option to purchase it within a specified time frame. A portion of the monthly lease payment can be credited towards the purchase price if the buyer exercises the option. This allows the buyer to rent the property while building equity toward ownership.

Similar to a lease option, a lease-purchase agreement combines a lease and a purchase agreement. The buyer agrees to purchase the property at the end of the lease term, and a portion of the monthly rent is applied toward the purchase price. Unlike a lease option, the buyer is generally obligated to complete the purchase.

Both a lease option and a lease purchase sale are "rent to own" real estate arrangements that combine elements of a lease agreement with the potential for future property purchase. While they share similarities, there are some differences in how they work and the benefits they offer to buyers and sellers:

Lease Option: A lease option, also known as a rent-to-own agreement, provides the tenant/buyer with the option to purchase the property at a predetermined price within a specified period. Here's how it typically works:

  1. Agreement: The landlord/seller and the tenant/buyer enter into a lease agreement that includes an option agreement. The option agreement grants the tenant/buyer the exclusive right to purchase the property during the option period.

  2. Rent and Option Payment: The tenant/buyer pays the landlord/seller a monthly rent, typically higher than the market rent, and an upfront option fee or option consideration, which serves as a non-refundable payment for the right to purchase the property.

  3. Option Period: The lease agreement specifies the duration of the option period, typically ranging from one to three years. During this time, the tenant/buyer has the opportunity to improve their credit, save for a down payment, or assess the property further before committing to purchase.

  4. Purchase Decision: At any point during the option period, the tenant/buyer can exercise the option to purchase the property. If they decide not to exercise the option, the landlord/seller retains the option fee and the property remains with the seller.

Benefits for Buyers:

  • Path to Homeownership: Lease options provide buyers with the chance to live in the property they intend to purchase while they prepare for homeownership.
  • Time for Financial Preparation: Buyers can use the option period to improve their credit score, save for a down payment, or resolve any financial issues that might prevent them from securing traditional financing.
  • Test Property and Location: Renting the property allows buyers to experience living in the neighborhood and test the property's suitability before committing to the purchase.

Benefits for Sellers:

  • Income Generation: Sellers receive rental income throughout the lease period, including higher rent due to the option fee and potential rent credits (if agreed upon).
  • Higher Sales Price: The predetermined purchase price in the option agreement may be higher than the current market value, allowing sellers to potentially sell the property at an increased price.
  • Wider Pool of Buyers: Lease options attract buyers who may not qualify for traditional financing, expanding the potential buyer pool and increasing the chances of finding a suitable purchaser.

Lease Purchase Sale: A lease purchase sale, sometimes referred to as an installment land contract, is a contract where the tenant/buyer agrees to purchase the property at the end of a specified lease term. Here's how it generally works:

  1. Agreement: The landlord/seller and tenant/buyer enter into a lease agreement with a purchase agreement attached. The purchase agreement outlines the terms of the eventual property purchase.

  2. Rent and Down Payment: The tenant/buyer pays monthly rent, which may be higher than market rent, and typically makes an upfront down payment or deposit toward the future purchase of the property.

  3. Purchase Obligation: Unlike a lease option, the tenant/buyer is usually obligated to purchase the property at the end of the lease term. Failure to do so may result in forfeiting the down payment and potential legal consequences.

  4. Title Transfer: Once the tenant/buyer fulfills their obligations, such as completing the lease term and securing necessary financing, the property ownership is transferred from the seller to the buyer.

Benefits for Buyers:

  • Homeownership Commitment: Lease purchase agreements provide a clear commitment to purchase the property, allowing buyers to work towards homeownership with certainty.
  • Time for Financial Preparation: Similar to lease options, buyers can use the lease term to improve their credit, save for a down payment, or address any financial concerns before finalizing the purchase.

Benefits for Sellers:

  • Guaranteed Sale: Sellers have a higher level of certainty that the property will be sold since the buyer is typically obligated to purchase at the end of the lease term.
  • Income Generation: Sellers receive rental income throughout the lease period and may benefit from a higher rent due to the tenant's commitment to purchase.

It's worth noting that the specific terms and conditions of lease options and lease purchase sales can vary, so it's essential for both parties to thoroughly review and understand the agreements before entering into such arrangements. Consulting with a real estate attorney or professional can provide further guidance and ensure compliance with local laws and regulations.

Get Our Free Market Update

Weekly Special real estate report covers the Tallahassee real estate market

Other buyers, sellers, lenders, and real estate agents have this critical information, and now you can too!

Get immediate access to our most recent newsletter.

Let more than 30 years of experience work for you with charts, graphs, and analysis of the Tallahassee housing market.

Each Monday morning we send out a simple, one-page report that provides a snapshot of the Tallahassee housing market. It only takes 2 minutes to read, but it gives you better market intelligence than most real estate agents possess. Just tell us where to send it below!

Wraparound Mortgage

In a wraparound mortgage, the seller extends a new loan to the buyer while still being responsible for the existing mortgageIn a wraparound mortgage, the seller extends a new loan to the buyer while still being responsible for the existing mortgage. The buyer makes mortgage payments to the seller, who, in turn, continues making payments on the original mortgage. This allows the buyer to acquire the property without obtaining new financing or qualifying for a traditional mortgage.

A wraparound mortgage, also known as an all-inclusive mortgage or wrap loan, is a financing arrangement in real estate where a new mortgage is created that encompasses an existing mortgage. This type of mortgage can benefit both buyers and sellers in the following ways:

  1. Buyer's Perspective:

    • Simplified Financing: A wraparound mortgage allows the buyer to obtain financing without having to secure a traditional mortgage from a lending institution. It provides an alternative option for buyers who may have difficulty qualifying for a new loan.
    • Flexibility in Down Payment: Buyers can negotiate the down payment and terms directly with the seller, offering potential flexibility in structuring the financial terms of the transaction.
    • Avoidance of Conventional Financing: If the buyer has an existing mortgage or faces challenges in obtaining conventional financing, a wraparound mortgage provides an alternative path to homeownership.
  2. Seller's Perspective:

    • Enhanced Marketability: By offering a wraparound mortgage, sellers can attract a broader pool of potential buyers who may not qualify for traditional financing. This expanded buyer base increases the chances of selling the property promptly.
    • Higher Sales Price: Sellers can potentially sell the property at a higher price since they are providing financing to the buyer. The agreed-upon sales price typically includes the outstanding balance on the existing mortgage plus any additional financing provided by the seller.
    • Ongoing Income Stream: Sellers receive interest payments from the buyer on the wraparound mortgage, allowing them to earn ongoing income during the term of the wrap loan. This can be especially advantageous if the seller has a very-low interest rate on the existing mortgage on the property.

How a Wraparound Mortgage Works:

  1. Agreement: The buyer and seller agree on the terms and conditions of the wraparound mortgage, including the sales price, interest rate, payment schedule, and other relevant details.
  2. Wraparound Mortgage Creation: A new mortgage is created that includes the balance of the existing mortgage and the additional financing provided by the seller.
  3. Payments: The buyer makes regular monthly payments to the seller, who, in turn, continues to make the payments on the existing mortgage (if applicable) while retaining the difference as income.
  4. Property Ownership: The buyer gains legal ownership of the property and receives equitable title, while the seller holds the original mortgage and has a security interest in the property until the wraparound mortgage is paid in full.
  5. Risk Considerations: Both parties should be aware of the risks involved. If the buyer defaults on the wraparound mortgage, the seller may face challenges in foreclosing and reclaiming the property if there is still an outstanding mortgage on it. It is crucial to have a well-drafted agreement that addresses default and foreclosure procedures. Both parties should seek a legal opinion on how the existing loan's due-on-sale clause might come into play.

It's important for both buyers and sellers to consult with a real estate attorney or legal professional to ensure compliance with local laws, properly structure the wraparound mortgage agreement, and protect their interests throughout the transaction.

Expired Book

NOW WHAT DO YOU DO?

Yes, you failed to sell your home. But that does not mean you have a home that is tough to sell, it just means you started off without having the right plan. By following the guidance in this booklet, you can get your home sold and move towards the goal which you were seeking when you first put your home up for sale.

I promise if you read this booklet cover to cover and follow its advice, you will not fail again. Tell us to whom and where you would like us to send our 60-page booklet for home sellers.

Subject-To Financing

Subject-to financing involves the buyer taking over the seller's existing mortgage payments without formally assuming the loanSubject-to financing involves the buyer taking over the seller's existing mortgage payments without formally assuming the loan. The buyer gains control of the property while the seller's name remains on the mortgage. The buyer is responsible for making payments, but the loan and the liability for its satisfaction remain in the seller's name.

Subject-to financing, also known as a subject-to mortgage or subject-to deal, is a real estate financing arrangement where the buyer acquires a property while taking over the existing mortgage payments without formally assuming the mortgage. Subject-to financing can benefit both buyers and sellers in the following ways:

  1. Buyer's Perspective:

    • No New Loan Qualification: Buyers who may have difficulty qualifying for a traditional mortgage can acquire a property without having to secure new financing. This can be beneficial for buyers with less-than-perfect credit or limited financial resources.
    • Favorable Financing Terms: Buyers can potentially benefit from the existing mortgage terms, such as a low interest rate or a longer repayment period, which can result in lower monthly payments and overall cost savings.
    • Faster Acquisition: Subject-to financing allows buyers to acquire a property quickly without going through the time-consuming process of securing a new loan. This can be advantageous in competitive real estate markets.
  2. Seller's Perspective:

    • Fast Sale: Sellers can sell their property quickly by transferring the ownership to a buyer who takes over the existing mortgage. This eliminates the need for the seller to wait for a buyer to secure new financing, streamlining the sales process.
    • Avoidance of Costs: Sellers can avoid paying prepayment penalties, loan assumption fees, or other costs associated with paying off or refinancing the existing mortgage.
    • Reduced Liability: Sellers transfer the responsibility for making mortgage payments to the buyer, thereby reducing their ongoing financial and legal obligations related to the property.

How Subject-to Financing Works:

  1. Agreement: The buyer and seller agree on the terms and conditions of the subject-to financing arrangement, including the purchase price, transfer of ownership, and the terms for taking over the existing mortgage.
  2. Due Diligence: The buyer conducts thorough due diligence to assess the existing mortgage, ensuring it is in good standing, reviewing the loan terms, and confirming that the seller is up to date on mortgage payments.
  3. Property Transfer: The seller transfers the property's ownership to the buyer through a legal process, typically involving a deed transfer. The existing mortgage remains in the seller's name, but the buyer gains equitable interest in the property.
  4. Mortgage Payments: The buyer assumes responsibility for making the mortgage payments directly to the lender. The seller may no longer have any involvement in the property's mortgage, but they may still retain legal liability.
  5. Risk Considerations: Both parties should be aware of the risks involved. If the buyer defaults on the mortgage payments, the seller may still be legally liable, potentially resulting in credit damage or foreclosure proceedings. Clear communication and trust between the buyer and seller are essential.

It is crucial for both buyers and sellers to consult with a real estate attorney or professional to ensure compliance with local laws, protect their interests, and mitigate potential risks associated with subject-to financing. Additionally, it's essential to review the existing mortgage documents to verify any potential risks or limitations imposed by the lender.

Seller-Assisted Down Payment

A Seller-Assisted Down Payment, also known as seller financing or seller contribution, is a real estate arrangement where the seller of a property provides financial assistance to the buyer by contributing toward the buyer's down payment.In this scenario, the seller agrees to assist the buyer with the down payment required for a traditional mortgage. The seller may provide a loan or gift funds to the buyer, reducing the initial cash requirement and making it easier for the buyer to qualify for a mortgage.

A Seller-Assisted Down Payment, also known as seller financing or seller contribution, is a real estate arrangement where the seller of a property provides financial assistance to the buyer by contributing toward the buyer's down payment. Here's how it typically works and the benefits it offers to both buyers and sellers:

  1. Agreement and Negotiation: The buyer and seller agree on the terms of the seller-assisted down payment arrangement as part of the overall purchase agreement. The specific details, such as the amount of the down payment assistance and repayment terms, are negotiated between the parties.

  2. Down Payment Assistance: The seller provides a portion of the funds required for the down payment. This contribution can help the buyer bridge the gap between their available funds and the required down payment amount. For example, if the down payment is $20,000 and the seller contributes $5,000, the buyer only needs to come up with $15,000.

  3. Financing Structure: The structure of the seller-assisted down payment can vary. It can be a direct contribution by the seller, a loan provided by the seller, or a combination of both. In some cases, the seller may place a second mortgage on the property, allowing the buyer to repay the down payment assistance over time.

Benefits for Buyers:

  • Increased Affordability: Seller-assisted down payment programs can make homeownership more accessible, particularly for buyers who have difficulty saving a large down payment.
  • Reduced Upfront Costs: By receiving financial assistance from the seller, buyers can minimize their out-of-pocket expenses at the time of purchase, making it easier to manage the initial financial burden.

Benefits for Sellers:

  • Attracting Buyers: Offering a seller-assisted down payment can make a property more appealing to potential buyers, especially those who may have limited funds for a traditional down payment.
  • Faster Sale: Providing down payment assistance may attract a larger pool of interested buyers, potentially leading to a quicker sale and reducing the time the property spends on the market.
  • Interest Earnings: If the seller provides a loan for the down payment assistance, they can earn interest on the amount they lend, generating additional income from the transaction.

It's important to note that seller-assisted down payment arrangements involve legal and financial considerations. Both parties should consult with real estate professionals, such as attorneys or agents, to ensure the arrangement complies with applicable laws and protects the interests of both buyer and seller.

Other Considerations For Seller-Assisted Down Payments

Seller-assisted down payment programs, where the seller contributes to the buyer's down payment, are not typically offered by banks or mortgage companies as part of their standard loan products. However, there are alternative options that may allow for seller-assisted down payment arrangements:

  1. FHA Loans: The Federal Housing Administration (FHA) allows sellers to contribute up to 6% of the home's sale price toward the buyer's closing costs, prepaid expenses, and discount points. While this contribution is not specifically designated for down payment assistance, it can indirectly reduce the buyer's out-of-pocket expenses, including the down payment.

  2. Conventional Loans: Conventional mortgage programs generally do not allow direct seller-assisted down payment contributions. However, some conventional loans allow for down payment assistance through eligible nonprofit organizations or government entities. These programs provide grants or second mortgages that can be used to cover all or a portion of the down payment.

  3. State and Local Programs: Various state and local housing agencies offer down payment assistance programs that may involve seller contributions. These programs are designed to assist low- to moderate-income homebuyers and often have specific eligibility criteria. They may provide grants, forgivable loans, or silent second mortgages to cover a portion of the down payment.

It's important to note that the availability and terms of seller-assisted down payment programs can vary depending on the lender, location, and specific loan product. It is recommended that potential homebuyers consult with mortgage lenders, local housing agencies, or nonprofit organizations that specialize in down payment assistance to explore available options and determine the eligibility criteria.

Additionally, when considering seller-assisted down payment arrangements, it is crucial to consult with a real estate attorney or professional to ensure compliance with relevant laws and regulations and to protect the interests of both the buyer and seller in the transaction.

20 Percent Down On A Home?
Learn how to decide how much you should put down on a house. Here is some down payment advice that might help you keep some cash in your pocket.
Leveraging Seller Financing to Expand Market Opportunities
Owner financing explained, also known as seller financing or seller carryback, is a creative alternative to traditional mortgage financing for real estate.
Top 10 Neighborhoods to Live in Tallahassee for Families
Whether you're a young family just starting out or an established one looking for a place to raise your children, you will find Tallahassee a welcoming and family-friendly environment that's sure to meet your needs.
Buy A Home Now Or Wait For 2024?
Are Home Prices Dropping? Will Rising Mortgage Interest Rates Bring Falling Home Prices? If you have been waiting for falling home prices, this is a very important video for you. Do you buy a home now or wait for 2023?
9 Tips For Buying A Home In A Bidding War
Follow these 9 home buying tips to get your offer approved ahead of other buyers. These 9 tips for buying a home today will help you overcome multiple offers on a home.
How To Get A Good Deal On A Home
Watch this short video before you buy a house to ensure you know whether to buy a home now or wait! This is the smart way to get a good deal on a house today.
Don't Lose Your Real Estate Contract Binder Deposit
As you prepare to buy a home, you'll want to follow this advice for home buyers. These real estate tips will help you ensure your real estate contract binder deposit is not forfeited to the seller due to mistakes made along the way.
Should You Get A 40-Year Mortgage?
Before you decide upon a specific mortgage amortization on a home loan, take a look at this quick case study that compares a 15-year loan with a 30-year loan and a 40-year amortized loan.
What are closing costs when buying a home?
If you are planning to buy a home now, or in the next few months, there are some fees and expenses you’ll need to pay in addition to your down payment that you should know about. Other than your down payment, all money you spend when you buy a home are called “closing costs,” and you should know about them ahead of time. Even experienced buyers can be surprised at all the costs that are associated with buying a home today. This short video will cover what you need to know so that you can (one, be prepared,
How Much Should You Put Down On A House?
Need some downpayment advice? Want to know what to put down on a house? There are issues you might not have considered when determining a home down payment, but my home buying tips include a side-by-side comparison of some options that will help you make the best decision.
Don't Buy A Home Without Seeing This First!
If you plan to buy a home now or in the next few months, let me tell you about a critical document that you absolutely must get from the seller before you start spending any money on inspections or repairs. The document that I’m addressing is the SELLERS PROPERTY DISCLOSURE, and you should not just HOPE that the seller will include it in the marketing documents. Instead, demand to see this document with a current signature and date from the seller on the day the contract is executed. As you will discover in
10 Mistakes Homebuyers Make In The Home Mortgage Process
10 Mistakes Homebuyers Make In The Home Mortgage Process | Home Buyer Tips - If you are getting ready to buy a home and you are financing your purchase, I am going to cover a list of ten things you are going to want to avoid until after you have closed on your home. The home mortgage process is very structured, loaded with rules and guidelines that you must follow in order to be approved. Remember, a bank is going to lend you hundreds of thousands of dollars, so it's not too shocking that they want you to f
Need To Move? Buying vs. Renting Today
Wondering whether to buy a house or rent a house in 2022? I have created a simple real estate case study to help you make your next move confidently
Is Home Ownership A Hedge Against Inflation?
Could homeownership today still be a smart hedge against inflation? This is a study of real estate during inflation.
How To Buy Your First Home - Step By Step
How To Buy Your First Home - Step By Step - The home buying process from start to finish. Walkthrough the entire homebuying process, great for first time homebuyers and anyone buying a home this year. This is Home Buying 101.
How HGTV Is Like Meth For Homebuyers
This is what I have observed regarding the HGTV impact on buying a home and selling a home.
6 Real Estate Investing Lessons from the 2008 Housing Bubble
Join us as we embark on a journey through the wreckage, unearthing wisdom that could safeguard your investments and set you up for unprecedented success.
How Often Do Home Prices Fall?
Are home prices falling? Will house prices fall soon? Home prices are soaring, buyers are having to pay above most sellers' asking prices, and the housing market feels just like a feeding frenzy during Shark Week on the Discovery Channel.
New Home Construction: Buy Now or Wait for Prices To Drop?
Is now the best time to buy a newly built home? Or should you wait for prices to drop? Today's report on timing the new construction market has the answers you seek!
How To Use Price Per Square Foot When Valuing A Home
Price per square foot is a measurement of a home's value, but the price per square foot alone is not an effective way to determine the price a home will sell in today's housing market.
8 Tips For Buying An Affordable Florida Vacation Home
It's possible to find an affordable Florida vacation home, but you have to be prepared. Follow these 8 smart tips so that you can own your piece of Florida paradise without breaking the bank.
How To Avoid Common Legal Issues When Buying Or Selling A Home
This video examines the most common real estate law problems and provides guidance on avoiding legal issues when buying or selling a home.
What To Offer On A Home In A Sellers Market
We are experiencing the strongest seller's market on record, so you have to be prepared to make the right kind of offer if you want to buy a home today. And it's not all just about how much to offer, there is so much involved when making the "RIGHT" offer in a seller's market. I have shared my experience of selling thousands of homes in a seller's market, both with working for buyers and with working for sellers. I have shared 3 important home buying tips to enlighten you on what matters most to sellers so
Why It's Alway About Supply And Demand In Real Estate
It's all about supply and demand. The real estate supply and demand dynamic tells us everything we need to know to forecast home sales in any given area.
Top 10 Tallahassee Neighborhoods
If you want to know where homebuyers chose to live in 2021, then this video was produced specifically for you. Follow along as I share the top-ten selling communities in Tallahassee in 2021, with insight on what it costs to live in each neighborhood as well as the number of homes that sold.
10 Home Inspection Issues And Tips
Moving from one home to another has enough stress and chaos built into the entire affair, and the home inspection is often the biggest stressor. Here's how to avoid home inspection stress!
Real Estate Negotiation Strategies For Each Market Condition
If you mishandle the negotiation on a home, several things will possibly happen, and all of them are bad. First and foremost, you’ll leave money on the table through either the sales price or the terms that are negotiated. Today, buyers are losing out on homes they want to buy and it’s often due to poor positioning in the negotiation. And while we are in the midst of a historic sellers’ market, I’m seeing sellers leave money on the table even when they have multiple offers! #realestatenegotiation #homenegot
Four Smart Ways To Use A Real Estate Contract Assignment
Contract assignability allows buyers to give or sell their rights to another buyer, and that creates opportunity. Tune in to discover four reasons to assign a real estate contract (including contract assignment profits)
What Does A Transaction Coordinator Do?
When you are selling a home or buying a home, a critical member of your support team is your transaction coordinator. Here's what to expect!
Real Estate Appraisal Versus Fair Market Value Of A Home?
What is the difference between a real estate appraisal and the fair market value of a home? If there is one practice that confounds both home buyers and home sellers alike it's the fact that the majority of real estate transactions close at the mercy of an appraisal conducted for a purpose that most consumers do not consider. Understanding these differences will save you money when it comes to buying or selling a home, and it will help you appreciate the need and value of a real estate appraisal. But here’s
What Is A Real Estate Hot Sheet?
What Is A Real Estate Hotsheet? - When agents are new to the real estate industry, they are trained to monitor the " MLS Hot Sheet" every morning in order to stay informed of the inventory changes. So what is a real estate hot sheet, and can non-Realtors get access to it? ?? Link to the current real estate Hot Sheet: https://www.TallahasseeHotSheet.com Up until now, the hot sheet was proprietary information only available to paid members of the MLS. But recognizing that inventory is so low in the Tallahass
Who is responsible for determining the value of the home you want to buy?
If you are planning on buying a home now, or within the next three to six months, you are going to have all sorts of questions pop up for which you’ll want answers. Among the most important of these will have to do with figuring out what a home is worth. As a matter of fact, I was recently asked this question “Who is primarily responsible for determining the market value of the home you want to buy?” Questions about valuation are very common from buyers of all experience levels because nobody wants to overp
What Is The Definition Of Distressed Property?
What Is The Definition Of Distressed Property? I received this question from "Rich" who asked: Joe, what is your definition of a "Distressed Property" - foreclosure, disrepair, time on market, location? That's a great question because we have a ton of people who have registered to receive our regularly updated list of distressed properties for sale in Tallahassee, so I know the topic is very popular today. In fact, it’s not uncommon for people just entering the market to buy a home to be focused on distress
Why Use A Buyer's Agent For New Construction?
Why Use A Buyer's Agent For New Construction? - I was recently asked about the benefits of having a buyers agent for new construction. Specifically, she asked why she should use a buyer's agent for new construction? My short answer is that you should always hire a well-trained advocate to help you buy any real estate, including new construction homes. This video though will specifically address several benefits of having your own advocate when purchasing a brand new home, whether it has already been built
What Is A Seller's Market In Real Estate?
You might have heard that we have a huge seller’s market right now in real estate. Do you know what that means? This real estate frequently asked question comes up from time to time when somebody is buying a home or selling a home. They want to know if its a buyer’s market or a seller’s market. Is now a good time to buy a home in the Tallahassee real estate market? I have prepared this short video to demonstrate the conditions that make this a seller’s market, and then we’ll show you the numbers and how we
What Is A Swimming Pool Worth?
What Is A Swimming Pool Worth? Recently, a customer buying a home asked me a simple question. She inquired “how much does a pool add to the value of a home?” Pretty simple question, right? Well, by the end of this short video, you’ll know the not-so-simple answer (and why this is so important).
How Many Times Will A Home Seller Counter Offer?
This real estate frequently asked question is from a recent home buyer. If you are about to buy a home in Tallahassee Florida or beyond and you’re trying to better understand how the real estate negotiation process will work, then understanding how to better control the negotiation is going to keep some of your hard-earned money in your pocket!
What You Should Know About School Zones When Buying A Home
What You Should Know About School Zones When Buying A Home - Buyers always ask about school zones, even when they do not have school-aged children. They understand that homes in the highest-rated school zones often fetch the most money, so they believe they are putting themselves in the best position for a future sale by purchasing a home in an acceptable school zone today. Unfortunately, this logic is flawed. If you are buying a home with no need for a school yet plan on including your opinion of the publi
Real Estate Is Local - What This Means!
If you plan on buying a home, or selling a home, you’ll want to understand the local nature of real estate and use it to your advantage.

Balloon Payment

A balloon payment occurs when the buyer agrees to make regular monthly payments for a specific period, typically several years, with a large lump-sum payment due at the end of the termA balloon payment occurs when the buyer agrees to make regular monthly payments for a specific period, typically several years, with a large lump-sum payment due at the end of the term. This approach allows the buyer to benefit from lower monthly payments while preparing for the final payment, which can be easily accomplished by the buyer taking out a new bank loan (refinancing).

In real estate, a balloon payment refers to a lump sum payment that is due at the end of a specific period, typically after a shorter-term loan or financing arrangement. Here's how it works and the benefits it offers to both buyers and sellers:

  1. Loan Structure: When a buyer obtains a loan with a balloon payment, they typically make regular monthly payments based on a predetermined repayment schedule. However, instead of fully amortizing the loan over the loan term, there is a remaining balance, known as the balloon payment, that becomes due at the end.

  2. Lower Monthly Payments: One benefit for buyers is that balloon payment loans often come with lower monthly payments compared to traditional long-term mortgages. This can make the property more affordable during the initial loan term, allowing buyers to allocate their funds elsewhere.

  3. Repayment Options: Prior to the balloon payment becoming due, buyers have various options to address the outstanding balance. They can choose to refinance the loan, sell the property and use the proceeds to pay off the balloon payment, or pay it off with personal funds or other financing sources.

  4. Benefits for Sellers: Sellers may offer balloon payment financing to attract buyers who may not qualify for traditional mortgage financing due to credit or income limitations. It can expand the pool of potential buyers and facilitate a higher price or a quicker sale. Additionally, sellers may benefit from receiving interest income on the loan during the loan term, potentially earning a higher return compared to other investment options.

  5. Considerations and Risks: Both buyers and sellers should carefully consider the risks associated with balloon payment loans. Buyers need to ensure they have the plan to address the balloon payment when it becomes due, such as securing refinancing or building up sufficient savings. Sellers need to evaluate the creditworthiness and financial stability of the buyer before agreeing to a balloon payment arrangement.

It's essential for both buyers and sellers to thoroughly understand the terms and implications of a balloon payment loan. Consulting with real estate professionals and financial advisors is highly recommended to assess the feasibility and potential risks associated with this type of financing.

Owner Financing: A Tool For Alternative Solutions

owner financing can be a tool used to increase ROI or reduce the amount of capital required in a home purchaseOwner financing offers buyers alternative paths to homeownership while allowing sellers to sell their properties more creatively.

In today's housing market, many homeowners are sitting on mortgages that have interest rates below 4%, so creative financing solutions might help them increase the amount of money they get from the sale of their homes. In essence, a low-interest-rate loan is an asset that adds value to the home if the seller knows how to use it.

For savvy real estate investors, owner financing can be a tool used to increase ROI or reduce the amount of capital required in an acquisition. While not every transaction will have sellers willing to offer creative solutions, the prudent investor can use owner-financing solutions to entice sellers to take their offers.

The various methods of owner financing provide flexibility and options tailored to the specific needs and circumstances of both buyers and sellers. Before entering into any owner financing agreement, it is crucial for both parties to consult with legal and financial professionals to ensure compliance with local regulations and to protect their interests.

What To Offer On A Home In A Sellers Market
We are experiencing the strongest seller's market on record, so you have to be prepared to make the right kind of offer if you want to buy a home today. And it's not all just about how much to offer, there is so much involved when making the "RIGHT" offer in a seller's market. I have shared my experience of selling thousands of homes in a seller's market, both with working for buyers and with working for sellers. I have shared 3 important home buying tips to enlighten you on what matters most to sellers so
What are closing costs when buying a home?
If you are planning to buy a home now, or in the next few months, there are some fees and expenses you’ll need to pay in addition to your down payment that you should know about. Other than your down payment, all money you spend when you buy a home are called “closing costs,” and you should know about them ahead of time. Even experienced buyers can be surprised at all the costs that are associated with buying a home today. This short video will cover what you need to know so that you can (one, be prepared,
The Truth About A Dubious Real Estate Statistic
They're Lying! When it comes to buying or selling a home, it's important to recognize false or misleading real estate stats (real estate statistics) that can lead to costly mistakes.
6 Tips For Selling A Home In 2022
This ain't your grandpa's real estate market, the process for selling a home and getting top dollar have changed so much. It starts with knowing the best way to sell your house. There are home selling tips and tricks you can use.
Pre-Marketing: Win the Home Selling Race
Are you looking to sell your home for the most money possible in today's fast-paced and competitive real estate market? Then you must consider pre-marketing strategies.
Sellers: Get The Most $ For Your Home
Understand real estate pre-marketing, why it works, and how to sell your house for the MOST MONEY POSSIBLE. Top Tips - Get ready to learn how to sell your house because with pre-marketing in real estate, you can sell a house fast for more money!
How To Sell Your House Without A Real Estate Agent
This for sale by owner video is about empowering you to make informed decisions on what you’ll need to do to save the commission by selling a house without a realtor.
Why It's Alway About Supply And Demand In Real Estate
It's all about supply and demand. The real estate supply and demand dynamic tells us everything we need to know to forecast home sales in any given area.
Home Selling Tip: Don't Price Your Home On The 9s!
One of the most important steps in your marketing strategy when selling a home is setting the initial asking price for the home. While I have discussed this in previous videos, today I’m going to discuss a technique that I refer to as pricing on the 9s. It works to reduce the buyer pool for the home seller and reduce’s the seller’s chances of getting top dollar for the home. It is a terrible tactic and works against the seller. If you watch this short video, you’ll understand exactly why it hurts home selle
Home Staging Advice For Sellers
Do you wonder how to net more money selling your home? This is one of my top home selling tips. Today's video is everything you need to know about staging your home in order to NET the most money from your sale. ?? Here's a link to our FREE Home Sellers Checklist mentioned in the video: https://www.tallahasseechecklist.com/home-seller-checklist-downloadzh61xghm
9 Mistakes to Avoid When Selling Your Home
Selling your home in Tallahassee can be daunting, especially if you're doing it for the first time in more than five years. Do This ...
Why Use A Buyer's Agent For New Construction?
Why Use A Buyer's Agent For New Construction? - I was recently asked about the benefits of having a buyers agent for new construction. Specifically, she asked why she should use a buyer's agent for new construction? My short answer is that you should always hire a well-trained advocate to help you buy any real estate, including new construction homes. This video though will specifically address several benefits of having your own advocate when purchasing a brand new home, whether it has already been built
Don't Buy A Home Without Seeing This First!
If you plan to buy a home now or in the next few months, let me tell you about a critical document that you absolutely must get from the seller before you start spending any money on inspections or repairs. The document that I’m addressing is the SELLERS PROPERTY DISCLOSURE, and you should not just HOPE that the seller will include it in the marketing documents. Instead, demand to see this document with a current signature and date from the seller on the day the contract is executed. As you will discover in
Are you a NIMBY or a YIMBY?
Two terms have gained prominence over the past few years. NIMBY (Not In My Back Yard) and YIMBY (Yes, In My Back Yard) are labels that classify housing market activists into one of two camps
What Is The Definition Of Distressed Property?
What Is The Definition Of Distressed Property? I received this question from "Rich" who asked: Joe, what is your definition of a "Distressed Property" - foreclosure, disrepair, time on market, location? That's a great question because we have a ton of people who have registered to receive our regularly updated list of distressed properties for sale in Tallahassee, so I know the topic is very popular today. In fact, it’s not uncommon for people just entering the market to buy a home to be focused on distress
Four Smart Ways To Use A Real Estate Contract Assignment
Contract assignability allows buyers to give or sell their rights to another buyer, and that creates opportunity. Tune in to discover four reasons to assign a real estate contract (including contract assignment profits)
How HGTV Is Like Meth For Homebuyers
This is what I have observed regarding the HGTV impact on buying a home and selling a home.
Housing - Do You Follow Your Gut (Or Analytics) In Housing?
I think the signs in the housing market are loud and clear, yet most real estate reports I read or view are missing the most critical factor in housing today.
Selling A Home In A Strong Sellers Market | AVOID This MISTAKE!
If you are getting ready to sell a home, you must avoid making a horrible mistake that I'm seeing every single day. As we continue in the midst of the strongest seller's market on record, one might assume that a home seller can do no wrong.
What Is Pre Marketing In Real Estate When Selling A Home?
What is pre-marketing in real estate when selling a home? When your home hits the market and it "goes live," how many buyers will be standing in line to get in? Will it look like an Apple store on the day the new iPhone is released? If not, why not? ... it's all in the video ??????
How To Determine The Value Of A Home With An Enclosed Garage
What is an enclosed garage worth? The evaluation is not always simple. There are many things that go into deciding how much extra value it adds.
Market Equilibrium, How The Balance Has Changed In Real Estate
The way we estimate housing market equilibrium has changed, and with it, the way the market is evaluated must change.
Who is responsible for determining the value of the home you want to buy?
If you are planning on buying a home now, or within the next three to six months, you are going to have all sorts of questions pop up for which you’ll want answers. Among the most important of these will have to do with figuring out what a home is worth. As a matter of fact, I was recently asked this question “Who is primarily responsible for determining the market value of the home you want to buy?” Questions about valuation are very common from buyers of all experience levels because nobody wants to overp
Need To Move? Buying vs. Renting Today
Wondering whether to buy a house or rent a house in 2022? I have created a simple real estate case study to help you make your next move confidently
How Often Do Home Prices Fall?
Are home prices falling? Will house prices fall soon? Home prices are soaring, buyers are having to pay above most sellers' asking prices, and the housing market feels just like a feeding frenzy during Shark Week on the Discovery Channel.
New Home Construction: Buy Now or Wait for Prices To Drop?
Is now the best time to buy a newly built home? Or should you wait for prices to drop? Today's report on timing the new construction market has the answers you seek!
How The Fed Funds Rate Impacts Mortgage Interest Rates
Concerned about mortgage rates? This video shows the history of the fed funds rate and mortgage interest rates to see if a correlation exists that we can use for a real estate forecast.
Will Assumable Mortgages Save Housing?
Will assumable mortgages save housing? Home affordability is becoming one of the hottest topics in the economy, but I was recently asked if assumable mortgages might bring some relief to homebuyers. This video shares what I think about how mortgage assumption will impact housing.
Real Estate Negotiation Strategies For Each Market Condition
If you mishandle the negotiation on a home, several things will possibly happen, and all of them are bad. First and foremost, you’ll leave money on the table through either the sales price or the terms that are negotiated. Today, buyers are losing out on homes they want to buy and it’s often due to poor positioning in the negotiation. And while we are in the midst of a historic sellers’ market, I’m seeing sellers leave money on the table even when they have multiple offers! #realestatenegotiation #homenegot
How Much Should You Put Down On A House?
Need some downpayment advice? Want to know what to put down on a house? There are issues you might not have considered when determining a home down payment, but my home buying tips include a side-by-side comparison of some options that will help you make the best decision.
How To Get A Good Deal On A Home
Watch this short video before you buy a house to ensure you know whether to buy a home now or wait! This is the smart way to get a good deal on a house today.
Selling A Home In 2022? The Most Important Question You Must Ask
There is one singular issue that stands above all others when selling a home in a strong sellers' market. In this video, I walk you through the question and best answer to the most important question you should ask when selling a home.
Is Home Ownership A Hedge Against Inflation?
Could homeownership today still be a smart hedge against inflation? This is a study of real estate during inflation.
10 Home Inspection Issues And Tips
Moving from one home to another has enough stress and chaos built into the entire affair, and the home inspection is often the biggest stressor. Here's how to avoid home inspection stress!
Real Estate Appraisal Versus Fair Market Value Of A Home?
What is the difference between a real estate appraisal and the fair market value of a home? If there is one practice that confounds both home buyers and home sellers alike it's the fact that the majority of real estate transactions close at the mercy of an appraisal conducted for a purpose that most consumers do not consider. Understanding these differences will save you money when it comes to buying or selling a home, and it will help you appreciate the need and value of a real estate appraisal. But here’s
Top 7 Ways To Market Your Home For Sale Using Technology
Technology has opened up a world of possibilities for homeowners looking to market their property and attract potential buyers. In this video, we'll be sharing the top 7 ways to use technology to market your home for sale.
What You Should Know About School Zones When Buying A Home
What You Should Know About School Zones When Buying A Home - Buyers always ask about school zones, even when they do not have school-aged children. They understand that homes in the highest-rated school zones often fetch the most money, so they believe they are putting themselves in the best position for a future sale by purchasing a home in an acceptable school zone today. Unfortunately, this logic is flawed. If you are buying a home with no need for a school yet plan on including your opinion of the publi
Buy A Home Now Or Wait For 2024?
Are Home Prices Dropping? Will Rising Mortgage Interest Rates Bring Falling Home Prices? If you have been waiting for falling home prices, this is a very important video for you. Do you buy a home now or wait for 2023?
What Is A Real Estate Hot Sheet?
What Is A Real Estate Hotsheet? - When agents are new to the real estate industry, they are trained to monitor the " MLS Hot Sheet" every morning in order to stay informed of the inventory changes. So what is a real estate hot sheet, and can non-Realtors get access to it? ?? Link to the current real estate Hot Sheet: https://www.TallahasseeHotSheet.com Up until now, the hot sheet was proprietary information only available to paid members of the MLS. But recognizing that inventory is so low in the Tallahass
Leveraging Seller Financing to Expand Market Opportunities
Owner financing explained, also known as seller financing or seller carryback, is a creative alternative to traditional mortgage financing for real estate.
Ugly Real Estate Listing Pictures | Real Estate Photography Tips
I’ve got some funny, ugly real estate listing pictures to share with you today, along with some simple real estate photography tips. Take a humorous look at some of the WORST pictures I have seen used when marketing a home ... not the way to sell your house!
How To Sell A Home That Needs Repairs
How To Sell A Home That Needs Repairs - If you want to know how to sell a fixer upper house fast, then there are some fundamentals of selling a fixer-upper that you should understand. Ideally, in real estate sales, when selling a home, you should bring a house to market-condition before you sell your house fast in order to attain top dollar during the sale. But ideal situations are not always possible. If you follow the tips and advice in this video, you will know how to sell a fixer-upper house fast and in
First Right Of Refusal Meaning Explained
What is a right of first refusal? What does first right of refusal mean when dealing with a real estate contract? Accepting real estate contingencies without understanding them often causes home sellers problems. I have shared a real-world example of how we handled a first right of refusal real estate contract negotiation, and the decision-making process used to put the home seller in the best situation possible. Pay close attention to this short video and you’ll have a better understanding of the right to
What Does A Transaction Coordinator Do?
When you are selling a home or buying a home, a critical member of your support team is your transaction coordinator. Here's what to expect!
What Is A Seller's Market In Real Estate?
You might have heard that we have a huge seller’s market right now in real estate. Do you know what that means? This real estate frequently asked question comes up from time to time when somebody is buying a home or selling a home. They want to know if its a buyer’s market or a seller’s market. Is now a good time to buy a home in the Tallahassee real estate market? I have prepared this short video to demonstrate the conditions that make this a seller’s market, and then we’ll show you the numbers and how we
How Much Margin For Negotiation Should I Include In My Asking Price?
I was recently asked "How much margin for negotiation should I include in my asking price?" This is a common question from experienced home sellers. They have sold homes in the past and understand the negotiation process involves a game of give and take, so doesn’t it make good sense to start with a little wiggle room in your price so that you can give it to the buyer to secure a sale? Here's what you should know. I explain EXACTLY how much margin for negotiation you should add to the price of your home t
How Long Does It Take To Sell A Home In 2021?
How long does it take a home to sell in 2021? I've been asked this question a lot recently, and it made me realize a full explanation was in order. Why? Because if you understood how to sell a home for top dollar, you would know that it is a trick question. Trust me on this. Invest the few minutes it takes to watch the video and you'll have a better understanding of selling a home than do most people in the real estate industry (and I'll prove it!).
20 Percent Down On A Home?
Learn how to decide how much you should put down on a house. Here is some down payment advice that might help you keep some cash in your pocket.
How Many Times Will A Home Seller Counter Offer?
This real estate frequently asked question is from a recent home buyer. If you are about to buy a home in Tallahassee Florida or beyond and you’re trying to better understand how the real estate negotiation process will work, then understanding how to better control the negotiation is going to keep some of your hard-earned money in your pocket!
Real Estate Is Local - What This Means!
If you plan on buying a home, or selling a home, you’ll want to understand the local nature of real estate and use it to your advantage.
5 Ways To Handle The House In A Divorce
If there is one thing that I see divorcing couples doing wrong more often than not, it is the decision on how to handle the house where the couple has lived. While I am not a lawyer and I'm not dispensing legal advice, take it from somebody who has helped hundreds of divorcing couples, there is a right way (and FOUR wrong ways) to handle the house in a divorce. Tell your attorney that you want to do it right!
What Is A Swimming Pool Worth?
What Is A Swimming Pool Worth? Recently, a customer buying a home asked me a simple question. She inquired “how much does a pool add to the value of a home?” Pretty simple question, right? Well, by the end of this short video, you’ll know the not-so-simple answer (and why this is so important).
How Digital Has Changed How We Sell A Home Today
Time to sell a home? The digital age has had a huge impact on what homeowners must do to get top dollar when selling their home. In this video, Joe Manausa explains why and how things have changed, and then lays out the plan for what home sellers must do.
How To Subscribe To The Joe Manausa Real Estate Channel On YouTube
Have you subscribed to the Joe Manausa Real Estate Channel on YouTube? It's a "must" for people who are planning to sell or buy a home in the near future. Just click subscribe to get started, and the bell icon, so that you never miss anything!
How To Buy Your First Home - Step By Step
How To Buy Your First Home - Step By Step - The home buying process from start to finish. Walkthrough the entire homebuying process, great for first time homebuyers and anyone buying a home this year. This is Home Buying 101.
Get More Money For Your Home
In order to understand how to get more money from a house sale, one must learn about the neighborhood stalker.
Are Wages Keeping Up With Rising Home Prices
Home prices are rising. Mortgage interest rates are rising. Are people earning enough money to buy homes today, or is the home affordability crisis getting worse?
How To Use Price Per Square Foot When Valuing A Home
Price per square foot is a measurement of a home's value, but the price per square foot alone is not an effective way to determine the price a home will sell in today's housing market.

There are a lot of people who endorse Joe for the job of selling your home, from Barbara Corcoran (Star of ABC's Shark Tank) to Preston Scott (host of Tallahassee's top daily "Audio Magazine," as well as the thousands of happy customers Joe has helped in the past. Listen why!

Post a Comment

(850) 378-5727