Owner Finance Offer ~ Negotiation Advice
I have property listed for sale in Tennessee, $76K. It is improved land; there is no house. There is no mortgage.
I have just received a verbal offer requesting owner financing. The offer is $72K with a $25K down payment, interest only payment. They have asked for a Balloon in 4 years, but offer that they will likely pay it off in 1 year. They want there to be no prepayment penalty. They volunteered a negotiable interest rate.
Does an "interest only payment" suggest they are agreeing to pay $25K in interest, no matter when they pay it off? Or am I misunderstanding these terms?
Does this sound like a fair offer, and/or what should I counter? I have never sold property, and certainly have no experience with owner financing.
Advice?