Seller Financing- What should I watch out for?

[Joe Edwards-Hoff]

Long story short (details to come if need be). I had a sudden need to move 80 miles away. Right off the bat I lucked out and found a house that was very close to my ideal home, and the seller wants to do seller financing. Sadly, I wasn't prepared to be buying a house and recently paid off some student loans, so I'm short on cash. Only after a short phonecall it sounds like he'd consider a couple of balloon payments instead of a larger down payment, which I'm fine and capable of. He just inherited the house. They're asking the amount that the taxes are assessed for, but zillow values it at about 20% more than that.

Anyway, if I go ahead with seller financing, is there much that I need to "look out for"? I've read/listened to a lot about it in real estate investing materials, but wasn't expecting it to be in my reality so soon. He seems laid back. He's ok with a bank loan. My only fear, which now seems unlikely, was that he would be against it being paid off early. So, anything that I'd need to think about or consider with seller financing that I wouldn't normally worry about when doing conventional? I'd still get it inspected. We'd have to discuss terms for taxes and insurance. Etc...

[Michael C.]

Get proof of ownership first, if he claims he inherited the property.
How long will he carry the loan for?
5 years or longer is great.
Get roof, pest, property, fireplace, etc. inspections
Check with title company or attorney who ever does that in your state to find out about requirements to draw up seller carry-back loans.
Are you using a real estate agent to assist you? If you are, they can guide you.
Maybe talk to the neighbors - if can't give you much information about the property.