When you’re ready to sell your home in Rochester, NY, you usually face two clear paths: take a cash offer now or explore a smarter long-term option — seller financing, what I like to call the golden goose of real estate.
After more than 15 years helping homeowners across Monroe County, I’ve seen both sides play out hundreds of times. Some sellers value speed. Others value return. And in many cases, seller financing gives you the best of both — more money over time, less tax impact, and steady monthly income you can treat like part of your retirement plan.
Let’s break down how it works, why it can pay you more overall, and what terms make it a win-win for both sides.
What Is Seller Financing?
In a traditional sale, your buyer gets a loan from a bank and pays you in full at closing. In a seller-financed sale, you become the bank. You sell the property but agree to receive monthly payments — including interest — for a set number of years.
It’s a secure, attorney-reviewed process where you keep a lien on the property until the buyer pays off the balance in full. In short: you’re still protected, but now you’re the one earning interest instead of the bank.
Why Local Buyers Like Us Pay More for Seller Financing
At Brett Buys Roc Houses LLC, we often pay cash — but those deals come with high transaction costs. Here’s what most sellers never see behind the curtain:
- We often borrow short-term money at high interest rates for initial purchases.
- We pay two full sets of closing costs — once to buy, and again when refinancing after renovations.
- Combined, those costs can total $15,000–$25,000+ on a single project.
When you offer seller financing, those expenses disappear. That savings means we can put more total money back into your pocket — often thousands more than a cash deal.
How the Numbers Work — The Golden Goose Example
Let’s say your Rochester home is worth $200,000.
- Cash Offer: You might receive $175,000–$180,000 today for a fast, simple close.
- Seller Financing Offer: You could receive closer to $200,000 (or more) over time — often with interest on top, which could total $215,000–$230,000 in payments over the term.
However, because we’re paying a higher overall price and assuming the risk of time and maintenance, the balance or terms usually need to favor the buyer — meaning a lower interest rate (often 3–5%) or slightly extended payment period.
That structure makes the deal sustainable for us — and highly rewarding for you, because you’re earning more overall while your money keeps working for you.
Why Seller Financing Can Be a Smart Retirement Strategy
✅ Steady Monthly Income: Your payments act like a pension or annuity — reliable and predictable.
✅ Deferred Taxes: You pay capital gains gradually over the years, not all at once.
✅ Better Returns Than the Bank: Even at a lower interest rate, your yield often beats CDs or savings accounts.
✅ Security: Your note and mortgage are recorded by attorneys, protecting your position.
✅ Community Impact: You help local investors improve Rochester neighborhoods while earning more yourself.
When Seller Financing Makes the Most Sense
Seller financing is ideal if you:
- Own your home free and clear (no mortgage)
- Don’t need all your proceeds immediately
- Want passive income with minimal effort
- Trust working with a local, verified buyer with a proven record of closing
If you need every dollar up front or still owe a large mortgage balance, a cash sale might fit better. But if you’re looking to maximize return and create monthly cash flow, seller financing may be the perfect fit.
Real Example: Turning a Home Into a 5-Year Income Stream
A Penfield homeowner we recently worked with didn’t need a fast close — she wanted her home sale to serve her retirement goals. Instead of taking a $165,000 cash offer, she chose a 5-year seller-financed agreement at a lower 4.5% interest rate. Her total payout? Just over $215,000.
She avoided immediate taxes, earned consistent income, and watched her property fund her next chapter — all while helping us invest locally.
FAQs
Do I still use an attorney?
Yes. In New York, both sides must have separate attorneys. Your lawyer drafts the note, mortgage, and payment terms for full legal protection.
Is seller financing safe?
Absolutely. Your interest is secured by the property — just like a bank loan. If payments stop, you retain legal rights to recover the property.
What kind of interest rates are typical?
Because we’re paying a higher total price, rates often range between 3%–5% — lower than hard-money or private lending, but better for you than parking your funds in a CD.
Can I get part cash and part payments?
Yes! Many sellers choose a hybrid option — a lump sum at closing plus monthly income over time.
Final Thoughts
When it comes to selling your home, it’s not always about the fastest check — it’s about the smartest one.
A cash offer gives you speed and simplicity. But a seller-financed sale can turn your property into a steady, income-producing asset — your very own golden goose — especially when structured fairly for both sides.
If you’re curious how a creative sale could fit your situation, let’s talk. We’ll show you both sides — cash vs. financing — so you can choose what’s best for your goals.
Visit www.brettbuysrochouses.com to request a no-obligation consultation. Local. Trusted. Transparent. Helping Rochester homeowners find smarter solutions for over 15 years.