A lot depends on where your property sits and how strong the market is. The reality is that plenty of prospective buyers have the cash flow to service a loan, and we've met many others who are waiting on an inheritance.

In a strong market, there's little upside to offering seller financing — unless you'd simply prefer to receive your money in installments.

In a slower market, though, it can work to your advantage. Cash buyers in slow periods tend to negotiate aggressively on price. A buyer who needs partial financing to close the deal, by contrast, is usually willing to pay more for your property in return for your help.

To be clear about terms: partial financing means you, the seller, collect a set percentage of the total price up front — say 50% — and receive the balance in payments over time. Full seller financing means accepting payments on the entire amount owed.

So when a buyer needs help to purchase, offering partial financing over 1-5 years with interest means you don't have to come down on price. As a bonus, your home becomes one of the rare options for buyers who are short on cash.

Location factors into the decision too. Generally speaking, well-located homes in excellent condition sell first, while properties with a weaker location or condition linger. Every year our agency meets buyers eager to purchase now who don't yet have all their funds together. Their options are limited to the few listings offering partial financing, or to homes priced well under their true budget. If your property falls into the less-than-ideal category for location or condition, offering partial financing could attract considerably more interest.

Be aware, though, that offering partial financing and agreeing to finance the entire purchase are two very different things.

For instance, it might be reasonably safe to finance a buyer who recently lost a parent and can document a substantial inheritance arriving within 12-24 months, or one with abundant cash flow. Financing someone you learn is already drowning in debt is another matter entirely.

While we've seen a handful of homes financed and amortized over 10-15 years, most arrangements resemble a shorter-term bridge loan.

The financed portion might be structured as interest-only payments with a balloon due at the end of the term, or amortized as if it were a 15-20 year loan, again with a balloon payment at term's end.

The risk: if the contract is drafted poorly, Mexican law tends to side with a non-paying buyer and caps the damages you can recover if you must reclaim the property. Structuring the deal well and making the contract airtight is essential to protect yourself if the buyer defaults.

Our suggestion is to first spend real time with the buyer requesting financing and gauge whether you're comfortable with them and their finances.

Unless you know the buyer personally, we generally advise financing only when they can put down 50% or more and the terms align with your needs and goals.

If partial financing is on your mind, we'd also encourage you to sit down with one of our brokers who has hands-on experience structuring these deals.