This week we have a spectacular off-MLS Mediterranean home. This custom home offers Venetian plaster, Crestron automation, wine cellar, air-conditioned garage and more -- and you won't find it on the MLS. It's over 9,000 square feet and the asking price is just under $3.7 million.
Here's where it gets really interesting...
The seller is retiring and looking for income. Selling the house will generate a lot of cash, but then what to do with the cash? Rather than investing in the stock market at record highs, or a bank account earning record lows, the seller is offering to "be the bank." The seller will carry back the purchase price, subject to a reasonable down payment and interest rate.
I haven't written about seller financing in quite some time, even though I've negotiated many deals (and wrote a book about seller financing back in 2011). Expect seller financing to be more important in the coming years, especially in the luxury market.
Seller financing is valuable for both buyers and sellers:
- Sellers can generate income from their property without the hassle of being a landlord. It's often possible to get a higher price for a property when offering terms.
- Buyers can buy without jumping through the hoops of bank underwriting. This is especially valuable for business owners who may have structured their business for tax efficiency -- not for pleasing bankers.
If you're thinking about buying or selling, let's chat about whether seller financing may be right for you. It's a technique that is powerful, and underutilized.
There are numerous other seller financing opportunities beside this home. I've successfully negotiated seller financing in recent years at many price points, and all over the Valley.
For more information, please call or text (480) 771-7787.