With new construction all around us, it seem likes its tougher and tougher to sell existing homes. How do we sell more homes by overcoming the buyer's objections when showing them properties? I hear Realtors state that they need a creative response to the statement by potential buyers of "We would buy this house today if it had ____!!" Many buyers are looking for the "perfect" home and in reviewing the existing inventory will find several homes which meet "almost "all of their requirements but because 100% of their wants and needs are not met they continue to look. This continued market search for the perfect home is very time consuming for the Realtor. Perhaps this idea can show you how to take that"almost" perfect home and make it the home of their dreams.
Here's how it works: Mr. and Mrs. Smith are out with their Realtor and they find the "almost perfect home in their price range of $300,000. Everything is just as they had wished but they were hoping for a finished basement and this particuar home has an unfinished basement. What do they do? Do they go ahead andy buy this home and hope to finish the basement at a future date (once they have saved up the money to do so) or do they look at their Realtor and say "let's keep looking"?
Many Realtors will tell you that they "just keep looking". Their buyers want their dream home now not later after they have saved money to do the basement) but their cash available limits them to a home in the price range of $300,000.
If the Realtor can show Mr. & Mrs. Smith how to buy this home, get the basement finished and do it with equal or less down payment, they would certainly be a hero! The Purchase Renovation is the perfect solution!! Let's look at the numbers.
If the purchaser buys the home and finishes the basement at a future date:
Purchase Price = $300,000 (as is value per appraisal), Max LTV of 95% = $285,000 Loan Amount, Down Payment = $15,000
Cost to Finish Basement = $30,000 (completed at a later date)
The Buyers will invest $15,000 in this transaction to purchase this property and still be faced with figuring out how to come up with another $30,000 at some point in the future to finish off the basement (something they would really like to have done today.) No wonder they want to keep looking!
Now let's take a look at the numbers using my Purchase Home Improvement Program.
Purchase Price = $300,000, Cost to Finish Basement = $30,000, Total Cost = $330,000 (300K + 30K)
Subject to completion value = $350,000, Max LTV of 90% = $315,000 Loan Amount. Down Payment = 15,000
As you can see, the customer gets the home they dreamed of with no additional cash investment required!! For the same $15,000 investment, the buyers have been able to purchase the home AND finis off the basement to create their "perfect home."
For more information about this type of program feel free to email me at kathy.wilson@gmacm.com or call me at 866 720 4622 ext 11.
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