Seller Finance..... (How to persuade seller?)

[John Kirk]

Hello all, I am in process of making an offer on a SFH in Northern New Jersey but am struggling finalizing the offer. I want to offer 90% of appraised value with the seller holding a 30 year 6% note for me. What are some of the reasons that you have used to convince the seller to agree to finance the deal? Much appreciated, John

[JD Martin]

Have you looked at this deal from the seller's point of view? What is the value to the seller of doing this deal? Also, what are real numbers? 90% of appraised value on a house that appraises at $500k is $450k. $50k is a lot of dough. 

If I was the seller, the reasons I might take your deal:

1. The appraisal is artificially high, so I'm getting good money from it.

2. I can't find anyone else to buy the property.

3. I expect you might default, which will then let me have made money and then resell it to someone else.

Other than that, it's not a very attractive offer. 6% for me holding the note for you? You might not even qualify for 6% bank financing.