Are you interested in purchasing a home in Ohio through a seller-financed Land Contract? Finding such a property can be a bit difficult, as just 9% of all real estate transactions are done FSBO and only a small percentage of those homes are transacted through a contract for deed. But there are resources available to help you find Ohio Land Contract homes.
Obviously, most homes sales completed in the state of Ohio are done using a traditional bank mortgage loan. That type of financing structure is the preferred way to sell a property through the real estate agent system; agents love mortgage sales because it’s the easiest way for the realtor to get paid.
It’s rare to find a Land Contract home offered by a realtor; most Land Contract homes are sold FSBO (For Sale by Owner).
It takes a bit more work on a Seller’s part to offer a home For Sale by Owner, and a little more effort still to provide the Buyer with seller-financing.
But the financial benefits to the Seller can be significant and worthwhile, which is why a consistent part of the real estate market is open to Land Contract transactions.
A Buyer simply needs to know where to look, what to look for, and what question to ask — even if a Seller hasn’t said that a Land Contract is an option.
First, look on the major real estate websites and search for phrases like Owner Will Carry (OWC) or Seller-Financing Available. Both of those statements indicate that a Seller is open to the Land Contract financing option. Zillow and Trulia are good places to start. The Ohio portion of Craigslist is a good source to easily find Ohio Land Contract homes, too.
But nothing says a Buyer must limit his or her interest to homes already listed as available by Land Contract. Once a Buyer finds a property that he or she likes, ask if a Land Contract option is available — even if its not listed by the Seller as such! Don’t be shy; just ask! When a Seller is truly motivated, options that get the property sold are all on the table, even if they haven’t been considered previously. The Buyer can even recommend a third-party contract and financial services company like RealtyPact to make the option more agreeable to the Seller.
A reasonable down payment amount with a balloon payment option after a 3-5 year period is often a very acceptable option to a Seller who wants to move a property. And at its core, that’s what an Ohio Land Contract is…