Realtors: Is your listing just plain "yucky"?
The word is a bit juvenile, but sometimes no other word can convey the message quite clearly enough. Is it dated, an REO... dare I say it, is your seller a hoarder? Hey... it happens.
Does every person that come through the property have the SAME negative feedback? Maybe its one room, maybe its the size, maybe its the over abundance of cats and their delightful "fragrance" that is wafting through the house.
Are you starting to wonder if anyone will ever see through these things for the potential this home has? I've got a great idea for you.
Frequently, buyers will come through the home, seeing every little (and big) thing that has to be done and you can see dollar signs popping up over their heads and the sound of a cash register like you're in the middle of a Bugs Bunny cartoon. They've got to keep moving, how on earth can they afford to put all this cash into this home?
Do you think if they knew they didn't have to come up with cash out of pocket to make that house perfect, they'd be more interested in purchasing it? Damn right they will.
The solution to the problem is called an FHA 203K. If you missed my first post, "How you can buy a diamond in the rough and make it your dream home", check it out for more information on how the loan itself works. As an agent, here's the basis of what you need to know - it will help you sell that beast.
But everyone doesn't know this loan exists, so if the buyer doesn't know, then what can I do? There's a few simple things you can do to market the property in this light.
- Put it in your listing. I've got plenty of agents that do just this - 1st line in the listing "This property is eligible for 203K renovation financing". The least that will do is have people ask "what's that?"
- Put it on the for sale sign. I've got additional yard stakes that I provide to my agents that go along side of the for sale sign too. Give me a call, I'll drop you off one, or with your permission I'll drop by the property and plunk it right down in the yard.
- Put it on your open house flyer or feature sheet. When the person walks into that home, they're more likely to have an open mind, and actually be excited about the possibilities.
- Call me, I'll come over. I've done it plenty of times, I will come and meet you at the home at the time you have the buyers coming through and explain the loan to them bit by bit as we walk through the home.
The best thing of all is there is additional work needed on your part. The explanation of the loan product should be done by a renovation lending professional. The contract closing time on these loan products should be 45-60 days to ensure a smooth closing. The sale closes the same as any other, commissions are paid the same way, etc. The only thing this loan will do is help you sell the home.
I hope this information helps, and please always feel free to ask any questions!
Thanks and happy selling.
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