Negotiating the price on seller financing?

[Brian Huber]

Hi, I've been in contact with a couple of sellers who are willing to do seller financing or a lease option.

While they seem fairly flexible to the terms of the seller financing, when I get to the point of negotiating the actual price, they aren't willing to budge.

Am I going about this in the wrong sequence?  Should I establish the price first and THEN the terms of financing?

I kinda figure that their mindset is, "Hey, I'm doing the buy a favor by carrying the note for a year or two. Why should I compromise on the price?"

Does anyone have any insight on this type of situation and ways to negotiate this more effectively? Thanks!

[Will Barnard]

Are you going about this in the wrong way? Slightly. I would not recommend negotiating each part separately, but I would suggest you use two or three offer options when negotiating thus type of deal. First, you can tell the seller, I can give you your price if you give me my terms or I can pay X price cash, or Y price with conventional or other than seller financing.

If the seller wants his price, you need to arrange the terms to make up for whatever price reduction you needed.