Re: Buying on payments - Posted by Karl (Oh)
Posted by Karl (Oh) on July 16, 2002 at 09:11:57:
I remember that post (“The long and short of it”). Craig assumed we were all selling homes for half of their retail value. We set the down and the pmt with a buyer, then make it a 3 or 4 year note, and let the price fall out at whatever. I did exactly that when I first started. I was out to create 3 year notes, and was ?aiming? at 36 months for no reason. I believe Craig suggested just increasing the price until you hit 10 years on your payments. I would struggle to justify that much of a leap, but I get his point. Don?t shoot yourself in the foot by under pricing homes when you?re the one taking the risk and carrying the financing.
I still struggle to separate my sell price from my purchase price. If I paid a little more than I wanted to on a home, I have no problem digging in my heels on a higher sell price. And I get it. But if I got a terrific deal on a home, I?m a lot softer on the sell price, when I certainly don?t need to be. This year I?m trying to teach myself to stop winging it, and just sell them all at ?full retail?. Maybe then I?ll end up with some 10 years notes.