COVID19 UPDATE
Oahu

Seller Financing – A Great Tool for Sellers and Buyers on Oahu

Seller financing can open opportunities for both Sellers and Buyers in today’s Real Estate Market.

This North Shore home (MLS# 1004616) is 1 of 45 homes in MLS offering seller financing

Why is it good for Sellers?

  • It simply increases the number of prospective buyers looking at your property. In today’s stricter lending environment, not everyone that qualified for a loan a few years ago can get one today. Some lenders also have restrictions on how many residential properties a person can own, and these restrictions sometimes prevent well qualified investors from getting a loan.
  • In addition, seller financing offers the seller the opportunity to free up some equity (via down payment from borrower). There may also be some tax benefits to receiving payments over the course of several years versus all at once (check with your CPA).
  • Seller financing is also a great tool for sellers that have products where banks have really scaled back on their lending, such as condotels and vacant land. I sold some land in Palolo earlier this year with seller financing. If you’d like to consider whether or not seller financing is an option for you as a seller, contact me for more information on our Seller’s Services.

Why is it good for Buyers?

  • Although seller financing is typically at higher interest rates then banks, it widens the spectrum of properties to consider (that the banks won’t touch) such as vacant land, condotels, or even condos that litigation, such as the Ilikai.
  • It could also open opportunities where a contingency sale may have been difficult, or basically buys a buyer time in order to get their financial picture in check to get conventional financing down the road. Most seller financing has a shorter term than conventional financing as well.
  • In addition, it’s also a great product for an investor that already owns multiple residential properties.

This Ala Moana Hotel Condo #3113 (MLS# 1010612) is offering seller financing

One thing to keep in mind, most sellers are going to want some “skin in the game” or money down from the buyer. So, I wouldn’t bank on finding a motivated seller that would offer financing with nothing down. As of today, there are 45 homes, 49 condos, and 28 vacant land listings in MLS offering seller financing.

Contact me if you are interested in receiving the latest list of properties offering seller financing on Oahu.

Comments (6) Show CommentsHide Comments (Remember)

Cool. Add your comment...

Your email address will not be published. Required fields are marked *

Leave your opinion here. Please be nice. Your Email address will be kept private, this form is secure and we never spam you.

Tara Kelly

November 23, 2010

I am so glad you told buyers and seller all the benefits. Much needed in today’s market!

Tara Kelly

November 23, 2010

I am so glad you told buyers and seller all the benefits. Much needed in today’s market!

In Hawaii Real Estate Is Cash Really King? « Hawaii Real Estate Market

January 19, 2011

[…] What does this say? It confirms my belief in that vacant land is still hard to finance, however, when I ran this search a few months back, the number came out at 78% of land sales were cash. Buyers are either starting to get loans, or sellers are considering seller financing. […]

In Hawaii Real Estate Is Cash Really King? « Hawaii Real Estate Market

January 19, 2011

[…] What does this say? It confirms my belief in that vacant land is still hard to finance, however, when I ran this search a few months back, the number came out at 78% of land sales were cash. Buyers are either starting to get loans, or sellers are considering seller financing. […]

T.Stoms

November 22, 2011

Doesn’t the S.A.F.E. Act prohibit seller financing unless you are a licensed mortgage loan originator? HUD’s final rule from August 2011 says seller financing is not exempt from the SAFE Act.

T.Stoms

November 22, 2011

Doesn’t the S.A.F.E. Act prohibit seller financing unless you are a licensed mortgage loan originator? HUD’s final rule from August 2011 says seller financing is not exempt from the SAFE Act.

More Articles from Hawaii Life