Seller Financing Ideas?

[Darren Hicks]

Hello all,

I'm selling my home for $370,000. The appraisal came in at $350,000. The buyer is using a VA loan with no money down. They only plan on living in the home for their tour (3 years) and then selling it. They really want the house but we are not willing to come down on the price as the market here is hot (bought the home for $290,000, brand new build, 3 years ago) and the home is worth it as many comps are selling for $345,000-$385,000. I'm willing to finance the remaining 20k. What are some structuring ideas I could present to the buyer? Two ideas I had in mind were:

1. 20k at 6% for 3 years.

2. 20k at 0% for 3 years; 1% of sale price plus my 20k when they sell in 3 years.

[Tom S.]

@Darren Hicks  Personally as a buyer I wouldn't pay $20k over the appraisal price.  Especially as the housing market is starting to soften.  I'm surprised you say the house is worth $370k based off the comps...that's what an appraiser does, and has determined it's worth $350k.