Seller, Would you take this deal?

In today’s market, creative financing is everywhere. Buyers are trying new ways to get into homes, and sellers are being asked to “think outside the box.”

But not every creative offer is a good one.

Let’s walk through a real-world example of a buyer offer that sounds attractive on the surface, yet carries serious risks—especially for the seller.

The Scenario

A seller has a home worth around $260,000. A buyer submits an offer for $280,000 using seller financing. At first glance, this looks great. Higher price, flexible terms—what’s not to like?

Here’s what the buyer is actually asking for.

The buyer wants:

• $0 down payment

• 100% seller financing for the full $280,000

• 7% interest amortized over 40 years

• A balloon payment in 4 years

  The seller to pay:

  • All closing costs

  • Both real estate agents’ commissions

• Buyer brings $0 to closing

• Property purchased AS-IS

On paper, the seller gets a higher price. In reality, the seller becomes the bank—and takes on all the upfront risk, but let’s break this down in plain English.

At closing, the seller:

• Receives no cash

• Pays approximately $18,000 out of pocket (agent fees + closing costs)

• Transfers ownership of the home

• Relies entirely on the buyer’s future performance

Yes, the seller will receive monthly payments—if the buyer pays on time. And yes, there’s a balloon payment—if the buyer can refinance or sell later.

But those outcomes are not guaranteed.

This Can Be a Bad Deal for Sellers

1. No Skin in the Game

When a buyer puts nothing down, they have very little to lose if things don’t go as planned. Financial stress, job changes, or unexpected expenses can quickly lead to default.

2. The Seller Is Fronting Real Money

Agent commissions and closing costs are due immediately. The seller is writing a check before receiving a single payment.

3. The Buyer Is Betting on the Future

This deal only works if the buyer’s situation improves enough to refinance or sell within four years. Hope is not a strategy—and sellers shouldn’t fund one.

4. The Risk Is One-Sided

The seller takes the financial hit first. The buyer has no money invested and no immediate consequence if the deal fails.

Now, Let’s Talk to the Buyer

This isn’t just a seller issue. Buyers need to take responsibility too.

If you’re a buyer considering an offer like this, ask yourself the following questions:

• If I can’t bring money to closing, am I truly ready to own a home?

• What happens if I can’t refinance in four years?

• Do I have a real backup plan—or am I just hoping things improve?

• Would I accept this deal if I were the seller?

• What am I offering the seller in exchange for taking all the risk?

Creative financing should be a bridge—not a burden.

The Bottom Line

Creative financing isn’t bad. One-sided financing is.

A strong offer creates balance:

• The buyer gets opportunity

• The seller gets protection

If an offer only works because one side is carrying all the risk, it’s not creative—it’s risky.

The best deals are the ones where both parties walk away feeling secure, not just hopeful.