Selling a Home On Contract for Deed In Minnesota

For a lot of sellers, buyers and Realtor’s a contract for deed sale seems foreign to them.  However, selling a home on contract for deed in Minnesota is a great option for most seller who are in a good financial position.

What do you need to know if your interested in selling your Minnesota Home on a Contract for deed?

1. Do you have to own the home free and clear?  To sell a home on a contract for deed in Minnesota you do not have to own the home free and clear.  However if you have a mortgage you should check if the mortgage has a due on sale clause.  It it does then you should get written permission from the lender to allow the contract for deed sale.

2. How much should the down payment be?  A fair amount down for a buyer is 10%. Some sellers want 20% down and that is understandable too.  But any amount higher its very difficult to actually find a buyer with more then 20% down so its then almost pointless to offer the home contract for deed.

3. Are there other costs involved in selling a contract for deed?  I have sellers hire a local attorney who can do real estate closings for contract for deeds.  Whether you hire an attorney or a title company there will be a closing fee.  To better market the property, find qualified buyers, and walk you through the process every step of the way its good to hire a local Real Estate expert to assist with the sale and list the home.

One of the reasons not to take less than 10% down is that if you are listing the home for sale you have to consider your closing costs and real estate commissions and know that will be 5-6% out of a sellers bottom line, so you need 10% down or more to get some cash right at closing.

If your selling to a family member and want them to basically take or payment or make fair payments then a lower down may make sense.

4. Will I be able to sell my home for more money? Offering your home contract for deed does not guarantee the highest price for your home.  However, the simple fact there is little competition because there are so few contract for deed homes for sale now in Minnesota, you are very likely to make 5-10% more on your home.

Also you will be making interest on the payments you receive and that can provide a contract for deed seller in Minnesota some extra cash flow.

Other Contract for Deed Related Blogs:

Tips for Buying a MN Contract for Deed

How to find a MN Contract for Deed

Obviously there are other factors to consider and specific questions based on your homes price range, location and condition that you may need to know.  Contact Chuck Carstensen with REMAX Results with your questions.
Call (612) 290-3809

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