Why Seller Financing Isn’t a Guessing Game

They say the definition of insanity is doing the same thing over and over again and expecting different results. I don’t know about insanity, but I do know what it feels like to get the same offer three times from the same agent and buyer—and to have it miss the mark all three times.

Now, I’m all for persistence. Real estate requires grit. But persistence without preparation? That just leads to frustration—for buyers, sellers, and yes, the brokers trying to keep everyone sane.

I called the agent on every occasion trying to explain the sellers position before the counteroffer went out: “This deal needs more down and a shorter term.” She agreed. And yet…buyer declined again and again. Why? Because there was no groundwork laid, no buyer education, and certainly no pre-offer phone call to hash out expectations.

At the end of the day, a five-minute conversation could have saved three written offers, countless emails, and a whole lot of sighing.

So, in the spirit of saving everyone time and sanity, here are a few tips for writing seller-financed offers that actually may stand a chance:

1. Call Before You Write

Seller financing isn’t one-size-fits-all. Sellers usually have specific needs (like cash obligations or comfort with certain terms). Pick up the phone, ask questions, and confirm what’s realistic before sending over paperwork.

2. Match the Down Payment to Reality

If a seller says they need 24% down, don’t send 10% and hope they’re feeling generous. This isn’t haggling over yard sale furniture—it’s someone’s financial security.

3. Terms Matter (A Lot)

Want a long term and amortization? Great—check if the seller is open to it. Many aren’t. Aligning terms before you draft the offer saves embarrassment and decline letters.

4. Educate Your Buyer

As the agent, your job isn’t just to write down what your buyer wants—it’s to explain what the seller is likely to accept. Bridge the gap before the paper crosses a desk.

5. Respect Everyone’s Time

Submitting offers that don’t meet known requirements is like bringing a salad to a barbecue: technically food, but no one’s excited about it.

Seller financing can be an amazing tool, but only when approached thoughtfully. A little communication upfront goes a long way toward keeping deals alive—and keeping everyone’s blood pressure down.