# Offer letter for seller financed purchase



## notthereyet (Nov 17, 2011)

Getting ready to make my first offer and hoping to get some feedback from others who have done this before.

Subject to a title search and procurement of suitable financing, we would like to submit an offer to purchase your property located at 123 Some Road for the full asking price of $8,900.

Our intention for this property is to build a debt-free home over the course of the next 3-5 years. Towards this end, our initial plan is to construct a detached garage or storage building while clearing the fire damaged structure of contents and interior finishes for inspection to determine if we will rebuild the existing structure or demolish it to make way for new construction.

Per our phone conversation last month, we would like to pursue a seller-financed purchase agreement with a $1,000 down payment and a 60-month term at an interest rate of 5% for the remaining balance of $7,900.

Based on an initial estimate of $1,505, we are prepared to cover closing costs, which should include a title search, preparation of finance documents, and the filing all necessary documents with the county clerk’s office.

Sincerely,
NTY​


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## In The Woods (Apr 27, 2017)

It doesn't hurt to ask!

The only thing that stands out to me are any details on the financing. Does the seller get the property back if you default with the payments? If so, how late you you need to be? Also who maintains title or deed to the property during the financing? What about property taxes? Insurance?

I realize that all that stuff would likely be addressed at a later time. Your proposal is a good summary. But if I were the prospective seller I would not agree to anything until the details like I mentioned above were addressed.


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## notthereyet (Nov 17, 2011)

The devil is always in the details... I've known the seller for years and while I love playing poker with him, real estate is his livelihood and I won't do this without a proper mortgage contract. No way will he have the ability to raise me out of the pot. Not too worried about it anyways, because from what I've seen over the last few years, he's working on getting out of the residential market. Who knows, if this works out well, I may buy more properties from him. Just gotta learn the rules to the game first.


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## Wolf mom (Mar 8, 2005)

Nice intent. Too wordy. Little personal information is needed if this is to be used as a contract. The second paragraph is not necessary. I would state: Seller to accept buildings in "as is" condition.
Should state: 
Contract contingent upon Buyer obtaining financing at no more than __% interest for X number of years. Or Seller to furnish financing (carryback) at ____% for x number of years. Then flesh it out with terms. Or state terms to be negotiated between buyer and seller before close of escrow. BTW: you need a closing date. You have not put one in.
You have written you are going to find financing in the first paragraph, then asking the seller to finance it for you in the third paragraph - which is it?
Is there water on the property? Is it a well? If so, you need to state something to the effect that contract contingent upon acceptance of well and water inspection. To be inspected by company of buyer's choice by - then give a reasonable date.
"Seller to pay all closing costs". 
You also need to have the boundary staked at minimum or surveyed. Lots of issues occur assuming where the boundaries are.


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