Want to buy land, a cabin or home in a remote area on terms? OMC?

Do you want to buy land, a cabin or home in a remote area on terms? OMC? I sell recreational land, cabins and homes in remote areas, mostly in the Prescott, Seligman and Ash Fork areas in Yavapai County Arizona. These usually are on dirt roads, have no access to on-the-grid electric power and have no well or municipal water source. These properties are not good candidates for lender financing. Indeed, it may be impossible to get a conventional or a government-backed loan from an institutional lender on these properties.

I recommend to the Sellers of land, cabins or homes in remote areas that they consider carrying a note. In other words, the Seller is offering to sell with a note for part of the selling price. These are entered and identified in our MLS with the phrase “Owner May Carry” or OMC. I often use the word “TERMS” to indicate that the Seller is offering to finance the sale. 

It is typical that the Sellers will ask for the down payment to be 25% to 50% of the asking price. Do not expect to buy rural or remote properties with 5% to 10% down as may be possible with government-backed loans. Most of the time Sellers will ask for 30% to 50% down in order to cover commissions, closing costs and clear some cash for the Seller. Another thing: The terms are generally have a short payoff, either a short amortization of five to 10 years or often a balloon note with the balloon payment due in three to five years.

If you want to buy with Seller financing (OMC) terms, keep in mind that the Seller is doing you a favor by extending terms to you. Do not expect to get a cash discount in this situation.

Of course, there are situations with Sellers where OMC financing will not work. If the Seller owes on a note secured by that property, OMC financing is not likely to work.

The availability of Owner May Carry or Seller financing may be your ticket to being able to get the land, cabin, or home of your dreams.

Please contact me if you are looking to buy land, a cabin or a home in the Prescott, Seligman or Ash Fork areas in Yavapai County Arizona.