Hi Mgs4 The purpose from a seller's perspective is to achieve the "retail" price for the property as opposed to selling it wholesale for cash….a la Harvey Norman. Attaching financing to a property is like doing a renovation – it's value add – and therefore you can sell at 7-10% above market value. You don't need to do a renovation as you can sell the property as a Handyman Special. That's why we advertise "We Buy Houses…..in ANY condition etc…" If you attach financing to a property it makes it easier for someone to buy it. A lot of people these days cannot ordinarily purchase property due to a number of reasons: employment situation (ie: only work casual, part time), bad credit record (ie: missed paying a bill or late paying a bill), don't have enough deposit etc… Vendor financing assists these people for an "interim" period of time so they can purchase a property they would otherwise not be able to. The purpose from a buyer's perspective is to be able to get into a property without having to get a bank loan, paying a small deposit, making repayments over time, and then refinancing with a financial institution to shift the loan back to bank rates within 3-5 years OR they can sell the property and pay out the remainder of the money. The majority of people who take up this opportunity would be home buyers. Some may be investors (as in the Handyman Special indicated above who buy, renovate, then on-sell). Whilst the price of the property may be higher, it's a set price and stays that way over the term of the contract. If a buyer was to save up over a period of time for a deposit, by the time they did property prices would have gone up again…..in other words they would be chasing their tail. In terms of marketing a property for sale via an instalment contract or deposit finance, correct me if I'm wrong Richard, but I was under the impression you don't necessarily have to hold a credit licence but you can work with someone who has one in order to sell it. Cheers, Tamara43
