A land contract is a type of seller financing that has many benefits both for buyer and seller. In a land contract, the seller provides credit instead of a lender or bank. The buyer makes their regular payments to the seller directly. Once the total price is paid in full, the seller gives the buyer the title to the property. Land contracts are like rent-to-own agreements, but have even more advantages for the seller. Here are some of the key benefits:
One of the biggest benefits of a land contract for buyers is that they are easier to qualify for than loans from other sources. For the seller, this means a much larger group of potential customers. Credit checks and employment verification steps required by banks and other lenders are optional with land contracts. Even if the buyer has poor credit, a low score is not a deal-breaker.
While land contracts open up opportunity to more buyers, they also simplify the sale process by removing the need for a third party. There are no mortgage lenders or banks in the transaction, which can make things simpler and quicker. This also means that sellers don’t have to deal with the traditional home selling obstacles like appraisals, checking the title and more. However, all this means that requirements for qualification are per seller discretion. This can have enormous benefits but still present some risk.
The seller owns the land contract property until the agreed upon purchase price is paid off. During that time, you have the same rights as any other property owner would when renting, such as the option to evict a buyer if they stop making payments. If the buyer cannot complete the buying process, the seller still keeps the property and can do whatever they want with it at that point. Sellers have the freedom to put the property back up for sale traditionally, try another land contract or keep it off the market entirely. Overall, land contracts provide some built-in freedom and peace of mind for sellers despite the potential risks.
Land contracts have many benefits for sellers and buyers alike. However, there are always disadvantages to consider. Consult a real estate professional or an attorney to determine if this type of seller financing is right for you.
Welcome to Long Island Living at its best! The South Shore of Suffolk County is a suburban area that runs along the shoreline of the Atlantic Ocean. Homes in this area consist of primarily residential properties. This area tends to be diverse in culture and income as it varies by hamlet, village or town. Residents along the South Shore have access to many beaches, parks and recreational activities. I pride myself on my honesty, integrity, hard work and personal service. My first career was in education, starting as a teacher then finishing as a guidance counselor and achieving my Master’s and two PD's. In 1986, I began my real estate career. In a sense, I am still an educator and offering guidance; this time I am outside of the classroom educating my clients on the selling and purchasing processes; which have become so complicated recently and guiding them safely through the confusing and ever-changing real estate market. It is very satisfying to me to help people with not only the greatest financial asset in their lives but their greatest emotional asset; where they celebrate holidays, raise their families and live their lives. I take the needs of my clients very seriously and as a result, I am proud to say, over 90% of my sales are the result of referrals and recommendations. Primarily, my areas of service are the Townships of Babylon and Islip on Long Island’s beautiful South Shore, near pristine beaches and wonderful boating, yet only 55 minutes from Manhattan; truly the best of both worlds. I'm a graduate of the Real Estate Institute and am certified as a Senior Real Estate Specialist. I also hold a license as a Notary Public. Please feel free to call or visit so I can help you fulfill your real estate dreams. I am a Full Service Licensed Real Estate Associate Broker and provide the following: Free appraisal Rental Mortgages International relocation services Sales Home warranty new homes Free school report Waterfront specialist Notary public Please feel free to call or visit so I can help you fulfill your real estate dreams.
For every sales transaction, a a portion of my commission will be donated to Pronto of Long Island, a nonprofit community outreach center who feed the hungry, clothe the needy and provide hope for our neighbors.
Top Agent Award Fast Expert-Click Here <script type="text/javascript" src="https://www.fastexpert.com/badge/city-badge.js?bs=145&u=NjAyOTE=&ur=L3RvcC1yZWFsLWVzdGF0ZS1hZ2VudHMvd2VzdC1pc2xpcC1ueS8jYWdlbnRfaWQ9NjAyOTEmYWM9dHJrJnR5PWNi&c=V2VzdCBJc2xpcA==&s=Tlk=&ty=city"></script>
SOP - https://files.erealtymedia.com/GetFile.ashx?FileId=27385454