Seller Finance 2nd - Higher interest, lower sales price

[Jason Papp]

Is something like this possible (simplified hypothetical example):

• Seller wants 500k
• Conventional loan for first 400k
• Seller carries a 2nd note of 25k at 19.5915% over 20 years = $100,009 in total payments

Would this then record a lower sales price of 425k and save a bit on property taxes too and still eventually get seller their 500k asking total? Since the amount actually paid was 425 (without any interest factored in)? Also gaining the seller the ability to lower tax rate over the number of years? Also save seller a bit on commissions and taxes at closing?

* for the sake of this question I am excluding higher tax rate on interest vs on principle for the seller (to keep question focused on recorded sales price)

Thanks in advance for any input or insight