I am preparing a series of articles that can remove some of the frustrations and even pending financial disaster that many home and business owners are experiencing. This article can help you sell your home.
I am preparing a series of articles that can remove some of the frustrations and even pending financial disaster that many home and business owners are experiencing.
While doing my research, and interviews, one realtor said. “We just have more inventory (homes and businesses) than buyers, thus slowing our market” and are dealing with frustrated sellers. Loans are more difficult to get.
The FSBO people, who decided to sell their own homes and businesses to save the Realtors commission, are saying they have cut their prices to below the appraised value of their homes, and still are not getting people to make offers.
In times of uncertainty, we have to be innovative. Sometimes, the answer is not always conveniently found in a book or elsewhere.
First, you must determine what the real underlying problem is.. In this situation, many of the banks and other primary lenders are a large part of this problem. Many banks have been making many loans to non qualified borrowers over the last few years.
These borrowers were delighted to get their loan with the low variable interest rate, with low down payments. The banks were making a ton of money. Then the other “shoe fell”. The variable interest rates increased, and the home buyers could no longer meet the monthly house payments and had to sell, trade down to a less expensive house, or go into bankruptcy.
Some of the same banks that loaned the customers the sub-prime loans will not help that same customer now, because of “their bad credit now”, “financially overextended” etc.
Also, the banks have been forced to tighten their purse strings and require much higher standards to make a loan to their customers. That’s is the problem, How do we fix it ?
While I was taking my surveys and having personal interviews, a number of the people asked me what I would do if I had their problems?
The first thing I would do is immediately add “Seller Financing” to all of my ads and signage. Then I would consider spending a few dollars to spruce up the “first sight” the prospect will see when he sees my home. You would be surprised at the increased value of your home, those few dollars can mean.
One man responded,” WHAT ! ? are you nuts, or what ?” People are not making offers at this price, why would they do so at a higher price? How and I going to finance the house? I am broke. I will answer these questions in my next Issue, issue two, in approximately two weeks.
The money is coming for the “Secondary Note Industry”. They are not interested in the property just the note generated by the sale of the property. So by the owner to be able to put “Owner Financing” in his ads and sineage he will double the inquiries about the property, and has a much better chance to sell the property . A “Back to Back closing is done” First, the property sale takes place as usually. Immediately thereafter the Note buyer will immediately purchase the mortgage .
The customer gets his property sold faster, the Realtor gets his commissions faster, and the note investor buys a good note.
Published in: Homeowners