Seller financing contract, as a seller.

[Michelle Meyer]

Hello,

I am looking for ideas, I am selling my rental. We are under contract, but with the prospect of a market shift, buyers is asking for a reduction.

I don't want to break the deal, but also don't want to lower the price we are under contract.  

Does anyone have examples where I get the lower amt they are now offering, we close, but I get the remainder of the initial agreed amt after they have built and sold the new house? 

This is a builder and they are looking  to demolish my property and build a new one then sell. 

Any help/advise would be appreciated, I don't think I should leave money on the table specially because I didn't want to sell to start with, but this buyer came to me and now if I don't take their lower offer, my agent is taking 50% of the earnest money, basically they are putting me against a wall and I want to have options to present to them.  I asked my agent to ask if they would be interested in creative financing, but not sure my agent has experience and I certainly only have based on what I hear on videos or read in forums.

Thanks all

[Ryan Taylor]

Quote from @Michelle Meyer:

Hello,

I am looking for ideas, I am selling my rental. We are under contract, but with the prospect of a market shift, buyers is asking for a reduction.

I don't want to break the deal, but also don't want to lower the price we are under contract.  

Does anyone have examples where I get the lower amt they are now offering, we close, but I get the remainder of the initial agreed amt after they have built and sold the new house? 

This is a builder and they are looking  to demolish my property and build a new one then sell. 

Any help/advise would be appreciated, I don't think I should leave money on the table specially because I didn't want to sell to start with, but this buyer came to me and now if I don't take their lower offer, my agent is taking 50% of the earnest money, basically they are putting me against a wall and I want to have options to present to them.  I asked my agent to ask if they would be interested in creative financing, but not sure my agent has experience and I certainly only have based on what I hear on videos or read in forums.

Thanks all

Hi Michelle....if I'm reading this correctly...the buyer is under contract at the price agreed to on the contract...it seems they would be the ones breaking the deal if they back out because you dont agree to lower the price...its their earnest money deposit they put on the table...not yours...sounds like someone is trying to strong arm a deal...one you didnt want to sell in the first place...let them walk...they came to you for the deal. Shouldnt they be coming up with a creative financing strategy...

If there is equity in your prop...meet them half way on a lower price and tell them you will carry the 2nd @10% with a 1yr call...interest only...maybe you can make up the price adjustment by lending some of your profits...just my thoughts...I'm sure there are many others on here that can come up with a better strategy...that's my opinion

[Joe Villeneuve]

Quote from @Ryan Taylor:

Quote from @Michelle Meyer:

Hello,

I am looking for ideas, I am selling my rental. We are under contract, but with the prospect of a market shift, buyers is asking for a reduction.

I don't want to break the deal, but also don't want to lower the price we are under contract.  

Does anyone have examples where I get the lower amt they are now offering, we close, but I get the remainder of the initial agreed amt after they have built and sold the new house? 

This is a builder and they are looking  to demolish my property and build a new one then sell. 

Any help/advise would be appreciated, I don't think I should leave money on the table specially because I didn't want to sell to start with, but this buyer came to me and now if I don't take their lower offer, my agent is taking 50% of the earnest money, basically they are putting me against a wall and I want to have options to present to them.  I asked my agent to ask if they would be interested in creative financing, but not sure my agent has experience and I certainly only have based on what I hear on videos or read in forums.

Thanks all

Hi Michelle....if I'm reading this correctly...the buyer is under contract at the price agreed to on the contract...it seems they would be the ones breaking the deal if they back out because you dont agree to lower the price...its their earnest money deposit they put on the table...not yours...sounds like someone is trying to strong arm a deal...one you didnt want to sell in the first place...let them walk...they came to you for the deal. Shouldnt they be coming up with a creative financing strategy...

If there is equity in your prop...meet them half way on a lower price and tell them you will carry the 2nd @10% with a 1yr call...interest only...maybe you can make up the price adjustment by lending some of your profits...just my thoughts...I'm sure there are many others on here that can come up with a better strategy...that's my opinion

...and, you can just raise the interest rate.  Run both options and compare using a full amortization table.  You'll see what the interest rate needs to be in order to make the deal work...for you.

[Rodney Sums]

Quote from @Michelle Meyer:

Hello,

I am looking for ideas, I am selling my rental. We are under contract, but with the prospect of a market shift, buyers is asking for a reduction.

I don't want to break the deal, but also don't want to lower the price we are under contract.  

Does anyone have examples where I get the lower amt they are now offering, we close, but I get the remainder of the initial agreed amt after they have built and sold the new house? 

This is a builder and they are looking  to demolish my property and build a new one then sell. 

Any help/advise would be appreciated, I don't think I should leave money on the table specially because I didn't want to sell to start with, but this buyer came to me and now if I don't take their lower offer, my agent is taking 50% of the earnest money, basically they are putting me against a wall and I want to have options to present to them.  I asked my agent to ask if they would be interested in creative financing, but not sure my agent has experience and I certainly only have based on what I hear on videos or read in forums.

Thanks all

 Perhaps I didn't catch what others did.  In summary what you're saying is:

You all went under contract to sell the property for $10

They want you to turn around and sell it for $9

You want the whole $10 so as a compromise, you want to get the $9 up front and carry the other $1

Did I understand you correctly?

If so, I don't see the value in that for them or you.  Meeting their wishes is less money for you.  Carrying the balance means they're spending more when they're trying to spend less.

You mentioned that you weren't interested in selling but now that you are, you want to see it through.  My advice for you is this:

-Decide whether you want more to hold it or sell it.  If you're not motivated to sell,  tell them to give you the $10 or walk.  If their inspection period is over, tell em give you the agreed upon price or lose their ENTIRE earnest deposit and "K your A".

-If you really want to sell, talk with your realtor and review market conditions to determine whether or not you can possibly sell to someone else and get your whole $10 or if $9 is more realistic.

I'm not sure where you are with inspections and appraisals but if you let them drop the price ahead of all that, you're at risk for more price drop requests after inspections.  They basically want you to assume the market risks they didn't plan for in advance.