I would paper the entire neighborhood with flyers (surprising how many people rent who would like to buy but need a nudge to think about it). In these flyers, make sure you include “OWN FOR LESS THAN RENT!” “OWNER WILL HELP WITH CLOSING” and “LOW DOWN PAYMENT”. “ONLY $XXX A MONTH”. Talk to a mortgage broker, and get some numbers for the monthly payments.
I would hold an open house. Put an ad in the paper - “MUST SELL THIS WEEKEND.” “OWNER WILL HELP” “ONLY $XXX/MONTH” (you get the idea). No phone number, just an address and the times. Then put signs at all the main intersections leading to your house, with “FOR SALE BY OWNER - OPEN HOUSE”, and arrows leading to your home. Make them very visible (Balloons, etc. if there are no rules against it in your area). Do this on a Sunday, after church. Have a mortgage broker sit with you (his incentive-many clients to prequalify for other homes!). When people walk through, immediately prequalify them. If they ask “how much do you need down”, say “how much do you have”. If they say “what kind of help are you offering”, you say “what kind of help do you need”. If you do this right, you will sell the house, and have a list of potential buyers for your next homes. The mortgage broker should be able to find at least a few people with qualifications to purchase your homes, on terms good for both you and the buyer. You may need to do this for two weekends, but probably no more than that…
I need to sell a home recently rehabbed as a for “sale by owner” property. The appraised value is $70K, I plan to ask for $67K leaving the buyer with $3K equity. At 80% LTV, the buyer would have to come up with a DP of $13,400K , I want to hold a note for $6,700 and receive $6,700 cash at the closing table. In addition I want to offer $500 toward closing cost. I need to pay off a mortgage of $57K. There is not enough in the deal to obtain the services of a real estate agent. Any suggestions in terms of helping to sell the property even faster? I need additional advice /suggestions.
You are planning to lower the price $3K, pay $500 in closing costs for the buyer, and carry a note for $6700. But there is not room for a realtor’s commission? I’m not here to promote realtors, but a sale at $70K by a realtor would cost you at most $4900…not much more than what you’re already giving away. The advantage of a realtor is MAXIMUM exposure through the MLS.
Having said all this, I wouldn’t market the house in the way you’re planning. It looks like a big ho-hum to me. I’d market it at $70K…100% financing. If you’re not familiar with all the 100% financing plans out there then give your mortgage broker a call.
Further, at your price level even an FHA loan wouldn’t cost more than about $4K total down payment and closing costs to a buyer. Why would a qualified buyer want to put $6700 down…plus closing costs? Your house is not going to be competitive with the majority of houses already on the market if you market it in the manner that you’ve stated.