Down-Payment on Seller-Financed Real Estate

The down-payment amount is always negotiable between the Seller and Buyer on seller-financed real estate.

While the Buyer and Seller have sole discretion to determine the down-payment amount for their transaction, if they use RealtyPact to strengthen their deal there is one simple requirement.

Remember, the typical down payment on real estate is between 5% to 10% of the home’s total purchase price. If the credit-worthiness of the Buyer is in question, the Seller may require a down-payment amount as high as 20% to better secure the transaction. And the Buyer can often negotiate a lower interest rate or a lower purchase price if a sizable down-payment amount is offered.

A good rule of thumb: the greater the down-payment amount paid, the more committed the Buyer will be to providing the remaining payments due to the Seller to complete the deal. And the better off the Seller will be should the Buyer ever default.

In the opinion of many real estate professionals — including RealtyPact — a 10% down-payment amount is a ‘Buyer/Seller balanced’ number.

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