Unrealistic Buyers, Exhibit A; or
“The Contract for Deed Catch-22”

I fielded a Web lead the other day from a very nice gentleman looking for a larger (over 2,000 FSF) town home near the lakes in move-in condition.

For under $250k.

dogWhere the town home association rules allow an 80 pound dog (he had one).

And the Seller would agree to finance his purchase (take a contract for deed, vs. the Buyer getting a mortgage).

Strike One!  Strike Two! . . . . 

Never mind that the starting price for the property he described is at least $350k, and very few of those have been for sale lately.

While some Sellers will entertain Contingent offers (the Buyer first needs to sell their current home), I’m aware of very few Sellers these days who will act as the bank for their Buyer.

And the handful who are open to that typically require both a sizable down payment (to protect against the risk of getting the property back), and an attractive (above market) interest rate.

Unfortunately, a Buyer who could satisfy those criteria would likely be able to go get a (still) cheap mortgage instead.

Call it, “the Contract for Deed Catch-22.”

Finding a Home for Fido

So, what options does that leave for such a Buyer?umpire

It’s no shame to have bad credit these days  . . . . join the crowd.

And, no one’s saying to find a foster home for Fido (my own household includes a 75 pound golden retriever, who’s a de facto family member — or at least, he thinks he is).

But, a much more realistic housing choice for someone with such a profile would be to rent a single family home with a yard, further out, while they rehabilitated their credit.

P.S.:  Groaner alert — what do you call the home pictured above?

Answer:  ‘a dog house’ (sorry).

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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