Ben Lomond, CA · Member since 2016 · 338 posts · 337 votes
Hello BP,
Once I get an owner interested in seller financing is the process for making an offer the same as if I was using a realtor?
Do I ask the seller to sign a contractual agreement for an agreed upon price contingent on a home inspection?
What is the normal flow of a seller financing deal from start to finish? Contracts, inspection, appraisals (do I really need one if the seller is financing the deal), contingencies, ect..
I would love to hear any tips or advice from people who have negotiated seller financed deals and how they structured the acquisition process.
Investor · Aptos, CA · Member since 2015 · 87 posts · 38 votes
9y
Yes on putting things in writing with a signed contract. Once signed take your contract and deposit check to the title co. and open an escrow. (deposit check made to title co) You'll have written an inspection contingency into the contract..(often 14 days..but your seller might want less). You dont need an appraisal (or appraisal contingency) as no bank is lending on this deal. After inspections..(make sure to check the septic system if it has one!)..go ahead and fund the deal and close the escrow. There will be property disclosures you both sign during that escrow period also. Some are required by law, so check on those requirements and get any documents you'll need.
Wholetailer & Architect · San Francisco, CA · Member since 2015 · 544 posts · 298 votes
9y
Jonathan Pflueger depending on your level of experience you may want to hire an appraiser or a realtor to do a BPO to confirm your purchase price is accurate. You don't need to share this with the owner if it comes in high but if it comes in low you might try negotiating down the price. Same with the home inspection