The competition is fierce and there are more homes for sale in the bay area than ever before. This market is different than any other market that has been in past years because loans are very difficult to get. There are all the wrong ingredients in this equation to have a completely favorable outcome. The million dollar question: How do I sell my home in a down market?
Most of us think that the selling price and the location are everything when it comes to selling a property. The problem that many buyers are facing today is getting qualified for the loan and the affordability of the monthly payments. It may be helpful for sellers in this market to put themselves in the shoes of the buyers to come up with potential solutions to their problems. There are some options for home sellers to get a fair price and help buyers enter the market place at the same time. There is the option for the seller to carry part of the note for the buyer and charge interest on the loan for a short period. The problem with this is the seller is at risk for that note considering they would become subordinate to the primary lender. If the seller chooses to explore this as an option, they should make sure the buyer can attach some sort of asset for security, check the buyer's credit and get references both professional and personal. This strategy can work for sellers who have equity in the property and can wait for some time to get compensated for the balance of the purchase price.
A very common approach is the option for the seller to help with part of or all of the buyers closing costs as an incentive to purchase a particular property. There are options of offering some sort of vacation package or even a new car if the deal closes. A better strategy may be to provide seller credit toward buying down the interest rate on the loan. This can make payments much more affordable on a monthly basis and save hundreds of thousands through the duration of the loan. The cost to buy down is usually one percent of the purchase price per point. This can help buyers to get into the housing market with an affordable payment. Regular marketing efforts will help to bring potential buyers but they still have to qualify for the loan and be able to afford the monthly payment. Contact us for more tips and pointers about selling property in a down market.
