Posted by Mark (SDCA) on October 25, 2000 at 15:19:30:
I DEFINITELY agree with this. If I want a quick sale or need all cash, I go realtor.
If it’s a LO or owner financing, realtors are not needed. The financing sells the property, not the MLS or the open houses or the advertising.
Mark
Sell Fast w/ Realtor? - Posted by Pam
Posted by Pam on October 25, 2000 at 11:45:21:
I own a home in an area where the economy is in a holding pattern. Nothing seems to be selling unless it’s dirt cheap. I have the property listed with a Realtor (for over 2 months now), and no interest. According to the Realtor, the price is not the problem (only $52,500.), it’s the economy. I don’t feel like waiting for the economy to rebound, if it ever will. I owe $18,000 for it, and just want a quick sale. I want to list it for $45,000 and take back a note on $9,000 (20% downpaymet, creating a no money down deal). After the Realtor’s commission of 6%, I should realize about $15,000 cash profit, plus a $9,000 note to collect on. Anyone have any other ideas?
Re: Sell Fast w/ Realtor? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on October 25, 2000 at 23:21:58:
Not much to add to the posts below, except to say that I am in a similar economic climate. The average days on market for sold listings in the MLS here is around 240 days! BUT…when I offer OWNER FINANCING and advertise it prominently, buyers come out of the woodwork. This is especially true with the lower to mid-priced homes. If you’re going to go that route, I don’t think I’d lower the price at this point.
The advantage to keeping it listed would be greater exposure through the MLS, and the Realtor can screen the potential buyers for you to help weed out the majority who respond to these ads who don’t have two nickles to their name.
But if you’re comfortable with the screening, you can certainly do it yourself and save the commission. Just make sure your advertising and your sign in the yard mention “owner financing” or something similar.
Brian (NY)
Re: Sell Fast w/ Realtor? - Posted by dewCO
Posted by dewCO on October 25, 2000 at 23:01:00:
Stacy is right, or just do what you suggested, either with or without the realtor. You don’t have to have a realtor to do an owner carry.
Or just lower the price. Realtors don’t like that, because then they make less commission, but price it or finance it so it sells.
Re: Sell Fast w/ Realtor? - Posted by Mark-NC
Posted by Mark-NC on October 25, 2000 at 13:42:14:
Pam,
Stacy is right. It’s not the home that sells it’s the ease of which you can put in a buyer. I would probably try to get rid of the realtor myself if you’ve have no activity.
It looks like you have plenty of room on this deal to make some concessions if needed to get it sold.
I have a deal that I am working on now that I got a buyer in 4 days. I am flipping this one.
Sunday I went out there, cleaned the yard up and trimed the hedges. While I was there I put a for sale by owner sign in the yard. I had a couple people stop by but nothing serious. I also put one of those information containers on the sign that I could put a flyer in.
The flyer didn’t really talk about the home except for the small print at the bottom. I didn’t put a price on it either. Here’s what it said.
Im ready to deal are you ready to buy?
*Flexible seller on price and terms
*Will help with financing
*will trade other assets for down payment
*Will sell as is
*will sell fixed up what ever you want
Give me a call Im ready to deal 555-5555
When they call I find out what kind of buyer they are then I can quote them a price and terms.
That’s the basics of it, I signed a contract to the 6th person that called, that was today. I was fortunate It was a strong credit buyer they are putting 20 percent down paying closing costs so I gave them a good price. After It’s all said and done I will walk with about $13,000.
Now I could have held out for more money but this was an easy buyer that you don’t see everyday so I let it go as is no hassel, no fix up.
I hope this gives you an idea On how to create some activity on it and hopefully sell it.
Good luck!!
Mark
Re: Sell Fast w/ Realtor? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on October 25, 2000 at 12:27:43:
Pam, you’re thinking along the right lines. Creating low or no down financing for your market will get you a MUCH larger pool of buyers to work with than the other houses in the area.
My recommendation is for you to find a couple of good mortgage brokers to work with. For example, there are programs that allow $0 down, with you taking back only a 5% second note (95/5), and allowing you to pay up to 3% closing costs for the buyer. Another program allows buyers to go up to a 60% debt/income ratio, and an allowance for up to $1200 per month of undocumented income to be added to buyer’s numbers. There’s one for FICOs of 620 and above that allows seller to pay a portion of downpayment and NOT carry a note. All of these programs (and more) have unique requirements that a mortgage broker can analyze for the best possible fit for each buyer.
Work with a mortgage broker or two that will take your potential buyers, filter them for you, reject them or find the program that will work best for them. Once you know you can offer $0 down financing to qualified buyers, you can advertise it and tap into that pool of buyers that the other sellers can’t touch.
Also, consider RAISING your price when offering great financing, to help cover your additional outlay providing down payment and/or closing cost. It’s not at all uncommon for appraisals to match a higher price when great terms are being offered.
Good luck!
Stacy
Re: Sell Fast w/ Realtor? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on October 25, 2000 at 23:11:11:
Hi Mark,
Nice deal! I like your approach with the flyers. I always use most of the space to describe the house, then use small print at the bottom to talk about the terms. But I think I will try your idea and switch it around.
Brian
(BTW - I am driving up to Utica this weekend to check out a few of those properties!)
Re: Also… - Posted by Stacy (AZ)
Posted by Stacy (AZ) on October 25, 2000 at 12:33:54:
Consider firing your realtor if you start offering $0 down financing. You need to judge your market, but it seems you could advertise $0 down yourself, and skip the commission. I know I’d do it.
Stacy