Home, Land, Property Buying and Selling - Owner Financing

I have a 40,000 sq.ft. house lot I want to sell. I don't have to sell but it would make my life easier as my job has been cut to 4 days a week. I was thinking if I could get 20% down and finance the rest at 2 or 3 % for 10 years might help sell it and help me too. The lot has town water but it would have to run under the street to reach the lot. Can I advertise town water "at street" or do I have to say it is across the street?

Are there any problems with owner financing? What should I be careful about? Any advice would be appreciated.

Owner financing can be a good tool to help sell your property but you must realize that when you finance, you, not the bank take the risk that the borrower won't pay.

You will need a lawyer to draw up the contract and make sure all your rights are protected. You should also do a credit check on the buyer. I would think you could do better than 2-3% interest on the loan.

Anyone who buys your lot would presumably want to build a house on it and would also presumably have to finance the house as well.
They will not likely get financing for the house if someone else holds title to the land.

Hi, most probably to consult a lawyer and checking the credit of the buyer.

All good points in this thread. It is pretty common to do this with land. The loan on the land should be paid off when the new owners decide to build and can be part of the construction loan. A clause can be put in the loan that it will be paid off at construction and a clause for "due on sale" incase the new buyers decide to not build and want to sell. It gets more complicated if you still have a loan against the land at this time, it needs to be paid off or you will need to do a wrap. Most fimance companies will not to these. I would consult a lawyer or have a very experienced Real Estate agent write the contract and have a lawer review it.