Reducing the Price is simple but might be emotionally difficult. The important thing to keep in mind is that the property won't sell if it is priced above comparable homes in your neighborhood (where "comparable" means equivalent size, appearance and condition). To get the price your neighbor got, your house must be in equivalent condition.
Seller FinancingIn some situations a good Buyer is temporarily unable to get a big enough mortgage to purchase your home.
For example:
- The Buyer's funds are tied up in an IRA or other long-term investment.
- A strong Buyer has children in the last year of college.
The above buyers might pay a higher price for your home, or agree to buy your hard-to-sell home, if you finance the purchase with a Seller's mortgage, either balloon or regular.
Balloon Mortgage: The buyer begins by making equal monthly payments, but must pay the entire balance at the end of a short period (usually from six months to three years). This type of Seller financing gives the Buyer time to arrange a bank mortgage and repay the Seller.
This type mortgage is usually implemented with a Balloon Note of the type included in our set of Forms & Contracts .
Regular Mortgage: Usually, this is a second mortgage to cover the difference between the price of the home and what the Buyer can finance. This differs from the balloon in that the buyer makes equal, monthly payments until the mortgage is paid off.
This type of mortgage is usually implemented with a Mortgage Bond (included in Seller's Kit).
The form used to certify that each of the above mortgages has been paid is called a Discharge of Mortgage. A copy is included with set of Forms & Contracts.
Lease with option to buy:
Use when a home proves impossible to sell because prospective Buyers can't qualify for a mortgage loan.
Your prospective Buyer rents the home with an option to buy within six months to two years. If he exercises the option, the Buyer/renter pays a lump-sum of 3%-5% of the purchase price to the Seller. In addition to this down payment, the Buyer/renter pays a monthly sum (usually $50-$300) in addition to the regular rent. This monthly sum is credited to the purchase price and is non-refundable.
"Lease with option to buy" agreements are available at Office Max, Office Depot, Staples and other large office supply stores. They are also available in our set of Forms & Contracts. You can download the kit to your computer or we can mail it to you.
If really in a hurry:
- People who use our For Sale By Owner Kit report selling their homes within two weeks
At $59.95 this is by far the lowest cost option when compared to $6,000 for a full service agent or $3,000 for a flat fee MLS listing (on a $100,000 house). You will be required to provide 5 to 10 good pictures of your property.
- Consider a full service real estate broker
This will cost you 6% to 7% of the purchase price ($6,000 to $7000 on a $100,000 house) and you might still have to lower your price to get a quick sale.
- Go with a flat fee MLS listing
This option can sell your house as quick as a full service broker for half the cost... (3.0% - 3.5% or $3,000 to $3,500 on a $100,000 house).
Other reasons a house might be hard to sell:
- If it's not the price, the problem is with the property itself or the neighborhood.
- Solicit the opinion of local real estate agents.
- If you have a problem neighborhood, the best place to find a buyer is among friends and relatives of people who live there. Mount a campaign to make sure everyone for blocks around knows that your house is for sale and know your asking price.
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