When is it appropriate to ask for seller financing?

[Marcello Di Gerlando]

Hi all, long time BP member here, never posted on this forum. 

As concisely as I think I can make this post:

My experience with real estate purchases has exclusively been cash purchases. However, an opportunity has presented it self where the seller, apparently, will consider owner financing. I made a low ball cash offer on this same property earlier this year and it was rejected (before you pro agents bite my head off the property is priced way above market in a fixer upper condition). 

A subsequent offer by another buyer fell through due to bank financing (predictable). Now, the seller has come back to me to see if we are still interested. I think if the seller would consider financing I would increase my offer from my initial low ball, but, when exactly should I suggest or include financing terms? at the initial offer or at some later date? my original low ball was as is condition no contingencies close in 30 days. I would increase my offer but it will have to include contingencies, inspections, financing etc. Any experience, suggestions or a different approach all together? please let me know.

Sorry if this is a dumb or obvious question.

Respectfully.

[Dan M.]

Just ask the agent if its an option to run it by their client, or if your in direct communication with the owner just ask him if its possible as you put another deal together. Any unasked question is always no. 

I have not done this, but have heard of people who offer a few offers:

Lower cash no contigency 

Higher cash some contigency

Highest Mortgage/Seller Financing standard contigency

Maybe try that approach and see what happens. As long as you take down the deal you win either way and the buyer has some control to what suits their needs and risk tolerance.