Most sellers net at least 15% more than their home's market valuation, though that number can shift meaningfully depending on terms, time in market, and property specifics. Seller upside comes primarily from two sources: the redistribution of lender profit and the elimination of seller closing costs, which typically run 6-8% of a property's value.  In this arrangement, it's common for a buyer to take on all closing costs.

A seller's return is paid in three stages. A down payment at closing (typically 0-10% of a property's value) is followed by monthly payments throughout the contract term. For sellers with an existing mortgage, those payments cover at minimum your loan's principal, interest, taxes, and insurance. For sellers without one, payments act as cash flow. At the end of the seller's chosen term (typically 5-10 years), the remaining balance arrives as a lump sum paid by a buyer's refinance or property sale.

That said, the specific outcome depends on your property, your goals and the terms we design together.

This project's goal is to help you understand how this approach works, what protections are in place, and whether this path makes sense for your situation. If it does, Fig Tree Housing takes on a specialized underwriting process foreign to most real estate agents to design deal terms around your goals and present them for your approval.

Once terms are set, we'll work together to find a qualified buyer, drawing from existing contacts where possible. If no buyers are available, we'll help you draft a listing to post online. You (or your agent) will remain responsible for marketing and communication associated with that listing.  When a buyer is identified, Fig Tree Housing will prepare a Letter of Intent for you and your buyer and introduce professionals to formalize your agreement.

At no point does Fig Tree Housing replace an attorney or your judgment. Our hope is to ensure the right people are in the room, the process is clear at every step, and that you never feel like you're navigating this process alone.

Fig Tree Housing works alongside agents to simplify a less-traditional path for your client. Whether you represent the buyer, the seller, or both, this process is designed to make your life easier.  Agent compensation is structured into the buyer's entry fee at the standard rate in the same way it is handled in a traditional sale. 

If you have questions about a specific situation, reach out directly to info@figtreehousing.com.

If a buyer misses consecutive monthly payments or the final balloon payment, a mechanism called a Deed in Lieu of Foreclosure ensures ownership of the property is returned to the seller without the delays, costs, or uncertainty of a foreclosure process.  All buyer payments, including down payment and monthly installments, remain with the seller if the deed is activated.  Though inconvenient, activation of the Deed allows a seller to earn a substantial amount of money before selling the home again at its full value. 

Two layers of administration work together if a buyer fails to meet their obligations. The first is the independent third-party attorney who serves as trustee throughout the agreement.  That attorney administers the trust impartially and is not beholden to either party. He or she will ensure obligations are met and consequences are enforced.  The second is a professional loan servicer who manages payment collection, ensuring tracking, documentation, and correct distribution from day one. 

Two federal-level protections set Trust Acquisition Agreements apart from most lender-free approaches for sellers with existing mortgages. The first prevents your existing lender from calling your current loan due. The second allows you to pursue future financing much as you would if you had sold traditionally by offsetting your mortgage on your debt-to-income ratio.  Both protections stem from a key aspect of this type of contract: For the lifetime of the agreement, the seller will retain the right to property title.  In keeping with that right, you also maintain responsibility for any existing mortgage. That said, in practice the mortgage becomes an administrative responsibility rather than a financial burden.  Buyer monthly payments will be structured to cover monthly mortgage expenses, including taxes and insurance in escrow.  

One way to think about this approach is to think of a buyer as purchasing the opportunity for ownership over time rather than taking full ownership at the point of sale. The buyer only receives ownership if they make their payments, allowing a seller to stay comfortably within the bounds of their agreement with a lender.  If a buyer fails to make payments, the seller will receive ownership of the home again. 

That said, every situation is unique.  An attorney will review yours before any formal agreement is finalized.

The most common reason this path isn't right for a seller is timing. If a seller needs the full value of their home paid out at closing to fund a purchase, settle a debt, or meet an immediate financial obligation, this isn't the right structure for them. The nature of this arrangement is that a seller's profit arrives over time, not all at once.

That said, a seller can define terms to receive meaningful profit on closing if necessary. A down payment from the buyer can be designed to meet immediate needs like a new down payment on another property, outstanding missed payments on a loan, or other pressing obligations while the remainder of the profit is collected over the lifetime of the agreement. 

Of course.  Until a Letter of Intent is signed, you are under no obligation to continue. You can explore this path, go through a consultation, and even complete the underwriting process without additional commitment. Once a Letter of Intent is signed by both parties, walking away is technically possible but would be in poor faith to your buyer.  Fig Tree Housing will make sure you understand exactly where you are in the process at every step.

An initial consultation is free. If you decide to move beyond that step, there is a one-time $50 underwriting fee that covers analysis and term design work, including any iteration needed to get the terms right. Aside from that fee, there are no other seller costs to work with Fig Tree Housing or any associated experts.  

At closing, Fig Tree Housing and associated professionals (typically a specialized attorney and loan management service) are paid a small share of the profit that would otherwise go to a traditional lender.  That compensation is paid by a buyer.

In any case, your cost is capped at the $50 charge for underwriting - a sum far outweighed by the elimination of most or all of the closing costs you would pay with a traditional lender, including agent compensation.