Friday, May 20, 2011
Lending standards continue to tighten; indications are that the default downpayment threshold will soon rise to 20%. If that had been the requirement for the past 12 months, it would have killed 40% of the home sales completed in that period. Lenders are responding to market conditions. Home sellers can too….be becoming lenders, of sorts. “By Owner” selling affords homeowners a wide berth for crafting terms of sale that meet their needs and those of buyers.
Seller financing is on the rise; last year 56% more houseswere sold via seller financing than the year before. That still accounts for only 1.5% of all home sales, so there is plenty of room for alternative financing to grow. Of course, seller financing requires a firm grip on market trends and home pricing dynamics, which are outlined in our Pricing Guide.
Got a good home pricing story? Enter our “Is Your Price Right?” contest and win a $1,000 home improvement gift card for telling us all about it.
If you are buying a house, you can quickly find by-owner listings with seller financing options by opening up the Advanced Search function at www.ForSaleByOwner.com and clicking the “lease to own” option.
That will pull out the properties whose owners are open to creative solutions for both of you.