If you’re thinking about selling your land, here’s a question worth asking:
Would you rather have all your money right now… or more money over time?
That’s really the core of the decision between a cash sale and seller financing. And if you’ve never considered seller financing before, you might be surprised how much more it could actually put in your pocket — we’re talking thousands of dollars.
Let’s break it down — real numbers, real talk — and I’ll show you exactly why seller financing can be a smart move (and why land investors might be happy to pay you more if you’re open to it).
What Is Seller Financing, Anyway?
If you’re new to the idea, here’s the quick version:
- Cash Sale: You get paid one big lump sum upfront. Boom — done deal, however usually a cash offer will be lower.
- Seller Financing: You let the buyer pay over time — monthly payments, with interest — just like a mini mortgage.
You basically act like the bank. And in return? You often get a higher sale price plus interest income over the life of the loan.
Why Land Investors Might Pay More on Terms
Here’s something most folks don’t realize:
Cash is expensive for land buyers.
If we (as land investors) pay cash, we’re tying up a lot of funds all at once. But if you’re willing to accept payments, it frees up our cash flow — and that flexibility means we can usually offer a higher price for your land.
For example, we might only be able to pay $100,000 cash, but we could offer $110,000 if you’re open to a 5-year seller financing agreement.
Sound interesting? Let’s run the numbers.
Real Example: $100K Cash vs. $110K Seller Financing (at 3%)
Let’s say you have a piece of land, and you get two offers:
- Cash Offer: $100,000 paid today.
- Seller Financing: $110,000 paid over 5 years at 3% interest.
Now let’s see how that plays out.
Scenario 1: Cash Sale + Savings Interest
You take the $100,000 and stick it in a savings account at an average 1.5% annual interest.
After 5 years, it grows to roughly:
$107,700 (total value after interest)
Not bad… but now let’s look at seller financing.
Scenario 2: Seller Financing
You agree to sell the land for $110,000, with 3% interest amortized over 5 years.
- Monthly payment: $1,973
- Total payments over 60 months: $118,387
That’s an extra $18,387 in your pocket — made up of:
- $10,000 higher sale price
- $8,387 earned in interest
Now let’s compare that to the cash sale + interest:
$118,387 (seller financing)
– $107,700 (cash + bank interest)
= $10,687 more
Visual Breakdown: 5-Year Comparison
| Scenario | Total Received After 5 Years |
|---|---|
| Cash Sale ($100K @ 1.5%) | $107,700 |
| Seller Financing ($110K @ 3%) | $118,387 |
| Extra Earned with Seller Financing | $10,687 |
Use our Seller Financing Calculator to calculate how much your payments might be.
Bonus: Monthly Income You Can Count On
Beyond the total dollars, there’s something else kind of nice:
You get monthly income.
Every month, $1,973.13 shows up like clockwork. That can be a great way to:
- Supplement retirement income
- Cover bills
- Or even fund your next adventure
You’re not just selling land — you’re creating a reliable stream of passive income.
What’s the Catch?
Seller financing does come with a few things to consider:
- Risk: If the buyer defaults, you may have to go through foreclosure to get the land back. You keep the payments made to that point plus you get the property back!
- Paperwork: You’ll need a promissory note and a land sale agreement (don’t worry, we can help).
- Time: You have to wait to get the full value — but again, you’re getting more in return.
If you’re okay with those tradeoffs, seller financing can be one of the smartest financial decisions you make with your land.
Thinking about selling but not in a rush for the money?
Let’s explore seller financing together. We’ll run a custom offer based on your land and show you what monthly payments could look like — no pressure, just info.
[Click here to get a free land offer] Or contact us at simplyacres@gmail.com
All the best for now,
Matthew & Kathleen
