Deal Analyzer — Seller Financing

34062 Lyncroft Street

Farmington Hills, MI 48331  ·  Ramble Hills  ·  French Normandy by Alexander V. Bogaerts

List$1,199,900
Built1989
Sq Ft4,024 + 700
Lot0.94 ac
Bed / Bath5 / 5.5
Taxes$20,521/yr
DOM~150 days
Area Avg34 days
Seller Mortgage~$400K @ 2.5%
01

Structure the Deal

Purchase Price $1,050,000
Down Payment $400,000
Interest Rate 4.00%
Loan Term 20 years
Balloon Payment None
Tax Filing Status Married
Single ($250K excl.) Married ($500K excl.)
Competing Offer
$1M Cash Buyer
For Reference
Traditional 6.5%
Seller financing wins
With current parameters, the seller nets more and you pay less.
02

The Pitch

03

Amortization Schedule

Show yearly amortization breakdown
Year Payment Principal Interest Balance Equity Built
04

Risks & Notes

Due-on-Sale Clause — Mitigated
Down payment covers mortgage payoff. Seller carries note with no underlying lien. Clean structure.
Real Estate Attorney Required
Need attorney to draft promissory note, mortgage/deed of trust, and any land contract terms. Non-negotiable.
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Title Insurance
Get owner's title insurance. Verify clean title, no hidden liens, judgments, or encumbrances.
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FEMA Flood Zone Check
Rouge Tributary waterfront. Verify flood zone designation at msc.fema.gov. May require flood insurance.
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Prepayment Clause
Negotiate right to refinance or pay off early without penalty. Critical if rates drop in the future.
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The Phantom Cash Buyer
150 days on market at 3× neighborhood average price. The $1M cash offer may be a negotiation tactic. Proceed accordingly.