I was referred to Dawna by a mutual friend when I started looking for my dream retirement beach house in Cayucos. Our journey together took three years with lots of looking and discussions to finally find me the perfect house. I can't thank Dawna and her amazing Executive Assistant Jodi for all of their patience, helpfulness and hard work on my quest to find the perfect home. Both Dawna and Jodi made me feel like they had all of the time in the world for me when I called with questions or concerns. Dawna is always cheerful and such a pleasure to work with. She is very responsive and extremely knowledgeable about the central coast. I highly recommend Davies Company Real Estate for all of your real estate needs. I wouldn't hesitate to use Dawna again and I did.... I used Dawna to sell my Paso Robles home after I purchased my new home. I once again found both Dawna and Jodi to be extremely professional and knowledgeable about the market. Dawna did a wonderful job of marketing my house and went above and beyond until it sold.
1. It can make a purchase faster, easier, and save you money. Seller financing is not a ‘hard money loan”. Closing costs for your purchase will be lower because there is no conventional lender involved. You can negotiate the payment amount, term of payments, interest rate, payoff date (often a balloon payment), etc. In fact, the interest rate and terms on the note and trust deed may be comparable to market interest rate and terms for conventional loans.
2. Not every seller wants or needs cash at the end of the closed sale. Work with your agent to learn what the seller is seeking (high interest rate, high payments, large down payment, etc.). Once you know what the seller wants, you can tailor the other transaction terms to better meet your own needs. As with all real estate transactions, there may be tax implications to your purchase and seller financing that you should review with your tax advisor.
3. Seller financing can be a great benefit to the seller. It is a way to give the seller their asking price, on your terms. In fact, sellers may get a better price and faster sale by carrying financing.
4. Sellers are cautious. Many fear that they will have to foreclose on the property because the buyer may not make payments. You should establish credibility by providing proactive documentation with your offer to the seller. This can include copies of notes and trust deeds that you have already paid off, your paystub, financial statements, credit report, etc.
5. The party receiving your note payments can change. The note and trust deed is a future saleable asset for the seller. They may sell or transfer to another party who will then receive your note payments. The note and trust deed can even be used to trade for property or other things of value.