Are these good seller finance terms? Where to negotiate? He's asking $130k 1) $5 000 down 2) 12-36 month term 3) 7.5% interest 4) Interest

Asked by Paul Burger, Sugar House, Salt Lake City, UT Tue Jan 25, 2011


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Adam Harward, Agent, Provo, UT
Tue Jan 25, 2011
Paul: A couple questions for you. Are you using Seller financing because you are unable to get traditional financing? If you haven't exhausted traditional financing I would be willing to set you up with someone to see if you are qualified.

If you have exhausted traditional financing and are unable to obtain it seller financing can be a great way to purchase. The specifics of this particular loan seem to be a reasonable down payment the term is really short and the interest rate is high.

Let me know if I can help in any way.


Adam Harward
Harward Real Estate
Provo, UT
0 votes
Tim Mellor, Agent, Midvale, UT
Tue Jan 25, 2011
Also, nobody has addressed the $130k asking price. To know whether this is a good price you should have an agent run some comps for you and follow that up with an appraisal even if the owner does not require it (unless you feel really confident you are getting a great deal). Would love to help you out if I can.

Usually these numbers are a give and take game. Any of them could potentially be adjusted by increasing or decreasing another one, so make sure the overall package is good before committing to it.

Tim Mellor
Equity Real Estate
1 vote
Todd Anderson, Agent, Park City, UT
Tue Jan 25, 2011
I'm guessing that you are seeking seller financing because you ae unable to obtain conventional financing. As you look forward 12-36 months, what do you see changing that will make finincing possible for you? What happens if you are not able to obtan financing then? Also, compare the cost of the seller financing to what you see offered elsewhere; what are you paying as a premium for the seller financing? Is it worth it to you?
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Anna M Brocco, Agent, Williston Park, NY
Tue Jan 25, 2011
What is your agent advising...if you don't have an agent, protect yourself and consult with an attorney who specializes in real estate before signing any contract; since none of us are directly involved in the transaction, not sure any comments will be of benefit.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Jan 25, 2011
Your Realtor should be person assisting you in this decision there could be other terms on the documents provided Virtual answer not to your benefit

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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Tony McMahon, Agent, WHITE PLAINS, MD
Tue Jan 25, 2011
Are you buying a car ? 12-36 month's ? Is there a baloon payment ? You will need to refinance in 3 years and would have paid on the interest only. Sounds like great terms for the note holder.
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