Seller financing essentially means that you - as the seller - take on the role of the lender so that the buyer is borrowing the money from you in order to finance the purchase of the manufactured home. This is not always an easy decision to make because there is an element of risk involved and it means that the money from the purchase is paid to you over time instead of all at once.
However, that being said, when it comes to the difference between being able to make the sale or not, it is worth it to consider seller financing to make it possible to sell the manufactured home and recoup your money.
As the housing market struggles and real estate fights along with it, seller financing can offer a way to bring buyers and sellers closer together in the ability of sellers to make their money and buyers to achieve the financing they need in order to buy the manufactured home at a certain price.
The best situation for seller financing occurs when a buyer would be a good candidate for a mortgage or loan, but they have not built up enough capital for a suitable down payment. Here, seller financing can occur not only as a whole, but partial financing can also occur to close that financial gap.
As a seller, if you are trying to get rid of a property, or if time is a factor (since the longer you hold onto a manufactured home without selling it, the less profit you may make when all is said and done), then seller financing can become very appealing. The more achievable the financing is to a potential buyer, the more likely it will be that buyers will come along - perhaps even in competition with one another.
Moreover, when you are being paid for a manufactured home in installments through seller financing, instead of receiving all of the funds as a lump sum, there are tax advantages to be considered. That being said, you will not only be receiving the agreed-upon price for the home, but also the additional interest payments which can make a large difference in the total amount that you receive.
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