Seller Financing Offer

[Alecia Loveless]

Last week I viewed a 5 unit property. I’m a little short of funds right now so presented my buyers agent (who I’ve worked with almost 30 years) two options on an offer. The first was for a 10% down payment, 20% seller financing and 70% bank financing with decent terms and a 60 month balloon on the seller financing portion.

The second option was 10% down 90% seller financing with 60 month balloon.

My buyers agent responded two days later that he didn’t think the sellers wanted the hassle of owner financing and that given the two vacancies and the fact that the other 3 units were so far under market rent that he figured they would need a cash buyer.

I’m not entirely sure my sellers agent actually presented the offer from the wording in his response to me. I’ve never questioned anything he’s done to represent me previously but have been left with the feeling that maybe he didn’t actually presented the offer to the listing agent.

I know the listing agent and could contact her to maybe say something like if your buyers change their mind about financing part of a deal please let me know.

Would you give my buyers agent the benefit of the doubt given that we’ve worked together for so long or would you recommend I drop a note to the listing agent?

I would not be cutting my agent out of the deal, just making sure the option was mentioned.

What would you do?

[Doug P.]

@Alecia Loveless I made 500 seller financing offers to listing agents and not one of them presented it to their seller.

However, 30% of sellers are willing to finance some or all of their equity.

If you want seller financing there's only one thing you need to do: Talk to the seller yourself.

I don't make seller financed offers to sellers. I ask them if they will finance, then I ask how much they want for the property and how much they want per month. They come back with various responses, some of them want down payments, some want interest, some don't want either. If you're generating enough leads and remain an unmotivated buyer then you can pick and choose the best of the best.