Seller financing is usually offered as a way to lure in potential buyers. Although the seller is willing to take a risk, he still wants to get a good deal and be sure that the buyer will pay back the loan reliably.

Here’s how to negotiate a seller financed offer:

Consider Kitchen Table Deals

Realize that many seller financed deals are discussed informally, at least in the beginning. Since there are so many ways lending terms could be set, it’s a good idea to talk with the seller before making an offer. Is the seller willing to provide all or only partial financing? What range of interest is he expecting? Will this be a private loan or will you assume his original mortgage? Asking questions will help you know what the seller is able to do, and what simply will not work in an offer.

Show Off Your Strengths

Prove yourself worthy of seller financing (and a low interest rate) by showing off your good points. You may be able to get a better deal by having a good credit score, proving reliable income, or bringing a large down payment.

Consult a Real Estate Attorney

Many buyers believe that a meeting with a real estate attorney is invaluable, especially when negotiating complicated seller financing agreements. Real estate agents don’t have the legal training necessary to give you the advice needed to make a competent decision. When writing an offer, run the final draft by your attorney. You’ll also want him to double-check any agreements you intend to sign.

Work with an Agent or Negotiate Directly

If the seller is open to casual upfront negotiation, you may want to work out a deal without sending a formal offer letter. Be sure to bring a list of the features you want (term, rate, etc.) and what you bring to the table (down payment, credit score, etc). Working together, you can write purchase agreement. Just be sure to check with your attorney before signing.

If you already have an agent, ask his advice. He may suggest that a formal offer letter is appropriate or he may want to negotiate directly. Whatever the case, be sure he is aware of the terms you will require before signing a seller financed contract.