If I see a property on the MLS and I want to offer seller financing (or use creative financing strategies to fund the deal), do listing agents quickly disregard these offers? I've heard that a lot of realtors resent seller financing offers for some reason because of something with their commissions? *Also, I was wondering but if I do offer seller financing on a MLS property, should I use a buyers agent?

I'm just gonna say as a investor most real estate agents are used to closing deals with either cash or conventional. They only like to do things ONE WAY and that's it, and it's the way that provides minimal to no risk for the buyer and the seller; seller and buyer close and the agent gets their bag out the deal. Few agents in the market understand seller finance and the many ways it can be structured, and few will sometimes promote it, but the rest are just risk averse. Your best approach to offer seller finance to the seller is when the home is off the MLS. If there's a deal with way too many people involved on both sides, they're gonna screw it up for everybody.

In most states, the listing agent is entitled to their commission if they have brought a ready, willing, and able buyer. Also, it's not up to the listing agent to determine what offer will work because it is completely up to the seller. They have to present the offer whether they like it or not. On the other side of the coin, the Realtor is probably advising their client that seller financing incurs more risk to the seller.

@Jimmy Lieu If the property is listed, the commission has already been negotiated between the seller and the listing agent. If you use a buyers agent, the listing agent will split commissions with your agent. It won’t cost you anything and will have “someone in your corner” to work with a buyers agent.

Jack and Jill homeowners have to pay off their mortgage and buy again, so aren't good SF candidates. All of my SF buys have been from tired landlords that owned free and clear. Off-market. If you do find a tired landlord listed that's willing to carry, just know the agent commission makes your down payment larger. More agents = more commission generally, but if you're new a good experienced buyer's agent will be worth it.

Do realtors hate seller financing offers on MLS properties?Do realtors hate seller financing offers on MLS properties?

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Alana O'Hanlan

Real Estate Agent
St. Pete/Clearwater, FL

Alana O'Hanlan

Real Estate Agent
St. Pete/Clearwater, FL

Replied May 13, 2021 17:20

Seller financing can be used when the seller doesn't carry a mortgage. If you are putting offers in on properties that the seller's carry a mortgage this is most likely the reason for rejection.

If you find a property where the seller doesn't carry a mortgage, it is a great way for the seller to continue to settle the closing costs with a (sizable down payment) while still obtain income for 6 months to a year by holding the note for the borrow.

I have sold many seller's on the benefits of seller financing and negotiated on buyer's behalf as well.

Best of luck! I am always available if you would like to bounce individual scenarios around.

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