Interview with Bob Morris

The Secrets Behind Buying On Contract

We spent some time with Bob Morris, a long time real estate broker in the Indianapolis area and asked him what the secrets are on buying a home on contract. Here’s what he told us…


Q       First of all, just what does it mean to buy on Contract?

A       When you buy on Contract, you buy directly from the seller and rather than going through all the hassle of qualifying for a mortgage and then paying a bank each month, all you do is negotiate with the seller and then pay them directly.


Q      Is it tough to get a Contract?

A       Well, in almost every case, it's a heckuva' lot easier than qualifying for a bank loan.


Q      Who buys on contracts?

A       Lots of people do. Way back in the day, many people did. And contract deals came back into vogue during the last big housing crisis in the 1970 and 80's. Then they went out of style for a while because mortgages were so easy to get. Heck, a decade ago, the joke was that all a buyer needed to do to qualify for a mortgage was to fog a mirror. And in some cases that was the truth. Not so today, as getting a mortgage is a challenge even for people with good jobs and excellent credit. So, buying on contract is becoming popular once again.


Q      How much money does it take to buy on contract?

A      Well, like with many things in life, the more you have, the easier it is. As they say, "Cash talks". But, contract deals are done every day with as little as 10% down. I had one client who purchased a $300,000 house with just $10,000 down- which was only a 3% down payment. There are certainly a lot of opportunities to buy on contract.


Q      What if someone does not have enough money saved?

A      Over the years, I've seen people scrape together enough cash for a down payment a lot of different ways. Some more common sources are savings, work bonuses, income tax refunds, cash in a life insurance policy, borrow from a 401k, sell a car or boat, have a big garage sale, ask mom n' dad, make a deal with Uncle Joe, and even borrow from credit cards (although you might want to think twice about that one). There are less conventional methods--- how about selling a baseball card collection or selling that horse tack you don't use anymore? Or some combination from that list? Get creative! Bottom line, if you want something bad enough, where there's a will, there's a way! Set a goal and get started.


Q     How much will the monthly payment be?

A      That will depend on several factors, including the purchase price and how much cash you will have to put down. Other factors will include how much the property taxes are, what's the cost of homeowners’ insurance, what interest rate is negotiated and how long the term of the contract is for. That all sounds complicated, and it is maybe just a little. But, then again, just to give you a ballpark idea of what your monthly payment might look like, simply subtract your cash down payment from the purchase price, and then multiply by .007. That'll give you a good enough number to work with. Later on, we can give you the exact numbers, so you'll be 100% confident that the house you're buying is in your comfort zone. (Here's an example you can follow: $100,000 price with a $10,000 cash down payment. So, 100,000 - 10,000 = 90,000. Then, 90,000 x .007 = $630/month)


Q   What kind of a house will someone be able to buy on contract?

A     All kinds. Everything from fixer' uppers to mansions are sold on contract. However, not all sellers will agree to sell on contract. In fact, once a client tells us what they are looking for in the way of a house, we'll roll up our sleeves and go to work to locate houses that (1) meet the buyer's needs AND (2) that the seller will sell on contract. We go to bat for our clients to locate the largest selection of homes possible that might be bought on contract.


Q      How can I find homes for sale on contract?

A       Because not everyone will sell on contract, finding homes to buy on the contract will take a little more work. (Of course, for their efforts, contract buyers save thousands of dollars in closing costs that they'd normally have to pay a bank just to get a mortgage!) Anyway, here's the easiest way to find homes that can be bought on contract.  Simply, Click Here


Q      What if someone has other questions?

A      That's pretty easy. We've been doing this awhile. In fact, we've helped dozens and dozens of clients to buy on contract (something not many real estate agents can say) and will gladly answer any and all questions that you might have. So, you can just give us a call or send us a text (317-625-0655) or shoot us a quick email at

More about Bob Morris

Bob started in the business early, just as he does each day. He bought his first 2 houses while in college. He began his career in real estate in 1976. Throughout the years, he has built up an extensive resume and has served many different roles. His experience ranges from being a successful realtor over the last 30+ years for both residential and commercials properties to a mortgage lender, an appraiser, an inspector, a contractor and even a property manager for over 500 tenants. He has tackled it all.

Not only has his experience been diverse, but it has also run deep. The combination makes him uniquely qualified to provide the type of services demanded by the present real estate market. From back in his wrestling years as a coach (Did you know that he was just recently inducted into the Hall of Fame???), he welcomes all questions. It’s how we learn. Give him a call!