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/u/secondbest3
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My 70-something year old parents have had their property on the market for about 9 months with no offers so far, despite being in a popular vacation spot in Maryland.
A buyer has come to them with an offer of 10% down payment, seller finances the rest, 3 years of payments at a below market interest rate then after 3 years a balloon payment of the remaining amount.
My parents want to pursue this option because they want to be rid of the property and move on. My instinct is that this is not a good option for my parents and they'd be better off lowering the price and/or waiting for a better offer.
If this was your parents, what would you advise?
My parents expect to receive a financing agreement that the prospective buyer is having a title company prepare and will review that with a lawyer, but I'm not convinced my parents should even be entertaining this offer this far.
I feel that even if the buyer is representing themselves accurately and truthfully, it is too much risk for my parents to take on the financing themselves. If the buyer were a good candidate for this kind of loan, they could just go through a bank, right? I understand the buyer would say they are trying to circumvent the market's interest rates, but again, even if they were a great candidate for a loan, you just never know what could happen.
It just seems like a no-brainer to me, that I wonder if I'm missing something.
submitted by /u/secondbest3
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Would you recommend a seller financing deal to your retired parents?
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A buyer has come to them with an offer of 10% down payment, seller finances the rest, 3 years of payments at a below market interest rate then after 3 years a balloon payment of the remaining amount.
My parents want to pursue this option because they want to be rid of the property and move on. My instinct is that this is not a good option for my parents and they'd be better off lowering the price and/or waiting for a better offer.
If this was your parents, what would you advise?
My parents expect to receive a financing agreement that the prospective buyer is having a title company prepare and will review that with a lawyer, but I'm not convinced my parents should even be entertaining this offer this far.
I feel that even if the buyer is representing themselves accurately and truthfully, it is too much risk for my parents to take on the financing themselves. If the buyer were a good candidate for this kind of loan, they could just go through a bank, right? I understand the buyer would say they are trying to circumvent the market's interest rates, but again, even if they were a great candidate for a loan, you just never know what could happen.
It just seems like a no-brainer to me, that I wonder if I'm missing something.
submitted by /u/secondbest3
[link] [comments]
Would you recommend a seller financing deal to your retired parents?
Continue reading...