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Usually you have to own the house outright, or take back a second note (i.e. you sell to them and let them get a first mortgage and you carry the second mortgage).
Why didn't you ask your Realtor what they had in mind and why they thought it would be beneficial to you? And how/why the thinking is that it would sell your house more quickly?
I don't know what it entails completely, but do take the time to thoroughly research it. We are located near 3 colleges and had a few people come in that were parents looking for a townhouse to do owner financing or lease purchase through to save money on dorm fees. (Amazingly enough we were cheaper than the dorms at 2 of the colleges!) We ended up not needing to do it, but it was an option we were getting ready to research ourselves.
Does you realtor mean sellers assist? We are offering that. It is where you give them an amount towards closing costs, I believe. (I could be totally wrong...)
In our case, we are offering sellers assist up to $5K. I think this helps in cases where buyers don't have enough of a downpayment and would have to PMI...If you give them money to bridge that, then it looks more attractive and affordable. Realtors-am I describing this right?
twinmma, you are probably offering closing cost assistance. buyer may be able to afford the payments, but may not have actual cash for closing. Seller can help with the closing costs, usually up to 3% of the sales price.
We do seller financing....we own a home we are selling. We ask for 20% down and have the Title company hold the deed. Meaning, the buyers make their monthly payments directly to the Title company, the Title company pays the mortgage, taxes and insurance and then sends the balance of the sellers payment on to us. When the seller has paid off the home they receive clear title from the Title company. We earn a little bit on the interest we charge, and someone that may not of been able to get standard financing can get into a home. If anything happens and the sellers are late on their payment (the Title company handles writing to them about the late payments) or they go belly up we get the home back. This has only happened to us one time in 30 years of selling properties this way. We are however, careful who we "sell" to...background checks etc. More than likely, anyone that can come up with 20% down is a reasonably good candidate for purchasing the home.
The buyers pay an additional $15-$20 a month for the handling fees from the Title company. The Title company also sends them their statements for income taxes/interest and insurance and any associated rate hikes.
This method is really used when the sellers want out of the home, but don't need to sell it outright to attain the $$$.
Ozark Nana
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