Every Realtor wants to sell more homes, but I can tell you how to do it right away. There is an overlooked area that needs to be taken seriously.
After showing several homes to first time home buyers, you will start to see that their price range is usually just below what they want. They think that buying a home is about finding the perfect home, way under market value. Inevitibly, the home they really want is priced above the amount they qualify for.
If you have shown more than one home, you know that the amount of foreclosures and short sales are starting to "hog" the marketplace. The problem with this, other than what they are doing to the comparable sales values is; they almost all need repairs. Be it filthy carpet, holes in the walls or dry rot to roof repairs and general maintenance, these homes are turning off buyers, or worse, turning off Realtors to showing them.
But there is no need to. There are great loan programs out there to fix these homes and allow your buyers to buy the home and make it their perfect home. Just do a version of a rehab loan and show your buyers the opportunities associated with them. There are a couple of options available.
- Fannie Mae Homepath - Great for anyone that wants to buy a home that needs repairs. Investors can even buy these with only 10% down. The only problem with this loan is that it needs to be a Fannie Mae owned property. Did you know there is no mortgage insurance on this loan, and you can buy a home with only 3% down.I am sure you have seen this logo, or some version of it:
- FHA 203k - Great for every other property out there. You can do fixing and repairs, to remodeling, to adding on to the home with this loan. It is basically the only construction loan out there. There are two versions of this loan, but if you can do the streamline version, which is restricted to cosmetics (non-structural), it is actually a very easy loan, and quite common. Most loan officers should be able to find a lender willing to do it.
Talk to your loan officer and see if they have it available. Don't believe the "it's too difficult" line. It is just another loan, and it is just paperwork. A thing that loan officers should be good at. What you will gain, is a huge amount of inventory to show your perspective buyers.
So make sure you educate your buyers, and let them know of the potential a rehab loan can offer. Do yourself a favor and get them pre-qualified first, but then go out with confidence and show them the way that the home can be made to fit their needs. You should now have more homes to show and with a little luck, maybe you can sell one of them.