Seller financing is quite rare and can be risky if not done through a reputable real estate attorney. With banks tightening their loan approval requirements seller financing could be an option. All the terms, including down payments, duration, payments, interest, and default/repossession criteria, of the loan should be covered; an attorney will aid you with this. Seller financing could be for any amount that you’re comfortable with dealing. Perhaps the buyer was only cleared for the majority of the asking price from the bank but is short $20,000. Seller financing could get that home or condo sold. Sellers and buyers could also negotiate on some type of trading, a car or some property that the buyer already possesses in return for a smaller loan or more attractive terms. The financing rate could be a guaranteed investment income for the seller should the buyer keep the loan for the full term. Buyers remember that a higher interest offer is bait to get the seller to bite and will reduce to eliminate the closing cost associated with bank financing. If bank financing conditions become more attractive/loose then you can replace the seller’s loan with a bank loan to take advantage of interest rates and save money.