Tightened credit markets and a sluggish real estate market have sellers looking for ways to seal the deal. This week I saw a Birmingham builder do what he could to take control of the situation and set his properties apart. His answer: the land contract.
Not only is he offering land contracts, he’s offering them at rates better than you will get at the bank. Today he advertised 4%! What’s not to like about 4% money, especially since his homes sell at prices where the buyer is likely to need a more expensive jumbo mortgage. Other advantages of land contracts:
I haven’t called for details, nor have I done the math, but I think this sounds like a great incentive for buyers.
Intrigued? Take a look.
Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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teresa boardman 01.18.09 at 12:23 pm
4%. I might have to move.
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Carole Cohen 01.18.09 at 2:03 pm
You guys might be ahead of the curve on this one, I’ll have to ask others outside my office. We are seeing however, more seller concessions – financing may be just around the corner.
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Maureen Francis 01.18.09 at 2:06 pm
Carole, of course the catch is that the seller has to have the ability to offer seller financing in the first place. For many though, a 4% return on their money is better than they will get elsewhere right now.
Dave 06.16.11 at 5:14 am
Hmmm…I personally would rather lower my home price to the market price that brings in cash deals or pre-qualified buyers than finance the buyer myself. If they default then I would have to repossess the home that I wanted so badly to sell right?
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