How about these non-profit organizations being the buyer... When they buy a HUD house they get first look, they can get $100 down houses, 50% off the final sales price. But what do they sell it for? They are held to a 10% profit.
What is the benefit then? Simply this, the person that will ultimately live in the home gets a heck of a deal. We have one right now that the borrowers are having trouble finding a home that they can afford. The appraiser(s) who did the original appraisal were way off on their estimate of the "cost to cure" or "renovation cost" just to bring it up to the MPS (Minimum Property Standards) therefore the M&M (Maintenance & Management) Contractor won't budge off the sales price... maybe I should say "can't budge" off the list price. If a non profit finds that same home, buys it at a 50% discount, fixes it up, they quite often can sell the home for about the same price, sometimes less than the buyer could have bought it in the first place,
Benefit to the buyer's agent... two commissions. One for the non-profit, then another for the final buyer. We encourage our non-profit organizations to pay an agent to get it sold. Good luck out there.
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