Seller Credits: A Great Way to Attract Buyers

By
Real Estate Agent with Hawaii Military Realty, Inc.

by David Kucic, Hawaii Real Estate Agent

Hawaii Real Estate

Are your sellers giving concessions to buyers?  I am not talking about giving them enough to put a 10 or 20% down payment but just enough to cover closing costs for example.  The math is simple to figure out.  I bet you have explained this to your sellers but they refuse to give in to the buyers in some cases.

I want to share with you the formula that I use to find properties for my clients that cant afford to pay the closing costs. Since the majority of my buyers are using their VA loan eligibility, they have to pay a 2.15% VA funding fee or 3.3% VA funding fee depending on whether or not it is their first or subsequent utilization of the benefit.  With single family homes averaging right around 613k and condos averaging 315k, this can be very costly.

Here is my real estate buyers representation example of E=MC2:

1)  Find several properties within the buyers price range as stated on the pre-qualification or pre-approval letter.  I normally will pull properties that are 5-10k over the amount since there are some that are over priced.

2)  Do CMA's to check the validity of the asking prices.  Assuming the price is somewhere in the ballpark, I proceed to step 3.

3)  Check the tax records to see how much the current owner paid for the property and when they purchased it.  This will give me a good idea of how much leverage we can gain on the sellers.

4)  Check out the Days on Market.  The higher the number, the better the chance of getting an accepted offer (especially if #3 will have them banking some serious profit anyway).

5)  Is the property vacant?  If so, someone is making that mortgage payment and nobody is paying rent.  If numbers 3,4 and 5 will all work in my favor then I am getting really HOT and close to finding something.

6)  Look closely at the MLS remarks.  Did the sellers agent put remarks such as "Seller is desperate" , "Will consider any reasonable offer" , "insult us with an offer", "seller already back on the mainland", "replacement property already found"......etc....

And there you have it.  This did not take rocket science to figure out and it works like a charm.  Now start making some offers for your buyer.  Let them know it may take a few offers before they get one accepted but sooner or later they will get a taker.

I have had offers put in and rejected by the sellers quite often.  The sellers agent knew they should take the offer but the sellers just wouldnt budge.  A month later, the sellers agent called to let me know they were dropping the price. 

I would like to hear back from anyone to see what other techniques you may be using to qualify buyers that normally would not be able to buy.

Aloha From Paradise,

David Kucic, Hawaii Real Estate Agent

http://www.davidkucic.com/ 

MILITARY BASES, POSTS AND FORTS ON OAHU, HAWAII AND POHAKALOA TRAINING AREA BIG ISLAND OF HAWAII

Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii Schofield Barracks and adjoining Wheeler Army Airfield are the 2nd Brigade, 3rd Brigade, Aviation Brigade, 45th Sustainment Brigade and the 8th Military Police Brigade.  In addition, the 8th Theatre Sustainment Command, 65th Engineer Battalion, 25th Special Troops Battalion and the 556 Personell Service Battalion are also part of the Division team and play an integral role in the success of the Division.

There are also two Brigades that are stationed in other locations.  The 1st Brigade is stationed at Ft. Lewis, Washington and the 4th Brigade is stationed at Ft. Richardson, Alaska.

The 25th Infantry Divison has proudly served in numerous wars and conflicts around the globe.  The Soldiers that make up the division are currently deployed to several locations to include Iraq.

Pearl Harbor: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii

Hickam Air Force Base: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii

Marine Corps Base Kaneohe: Kaneohe, Kailua, Oahu, Hawaii

Camp H. M. Smith: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii

Tripler Army Medical Center: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii

Fort Shafter: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii

Wheeler Army Airfield: Mililani, Wahiawa, Kapolei, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii

Helemano Military Reservation: Wailaua, Wahiawa, Mililani, Haleiwa, Oahu, Hawaii

Kahuku Training Area: Kahuku, Oahu, Hawaii

Kilauea Military Reservation: Hilo, Kona, Hawaii

Pohakuloa Training Area: Hilo, Kona, Hawaii

Makua Military Reservation: Waianae, Nanakuli, Makaha, Oahu, Hawaii

 

 

TEMPORARY LODGING FACILITIES FOR THE ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES ON OAHU, HAWAII

The Hale Koa Hotel on Waikiki Beach: Honolulu, H

The Inn at Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii

The Royal Alaka'i at Hickam Air Force Base

The Lodge at Kaneohe Bay and the Cottages at Kaneohe Bay

Navy Lodge Hawaii at Pearl HarborThe Beach Cottages at Kalaeloa (formerly Barbers Point NAS): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii

Tripler Army Medical Center Guest House

Bellows Air Force Station Beach Cabins

 

GOLF COURSES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES

 

Leilehua Golf Course (Army, Schofield Barracks) Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii

Walter Nagorski Golf Course (Army, Ft. Shafter)

Mamala Bay Golf Course and Kealohi Golf Course (Air Force, Hickam AFB)

Kaneohe Klipper Golf Course (Marine Corps, Kaneohe Bay)

Barbers Point Golf Course (Navy, Barbers Point): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii

Navy Marine Golf Course (Obvious Right?)

 

COMMISSARIES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES

Schofield Barracks Commissary near Wahiawa, Waipahu and Mililani, Hawaii  Kaneohe Marine Corps Base Commissary near Kaneohe and Kailua, Hawaii             Barbers Point Commissary near Kapolei, Ewa Beach and Makakilo, Hawaii            Pearl Harbor Commissary and Hickam Air Force Base Commissary which are both near the cities of Pearl City, Pearlridge, Aiea and Honolulu.

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Rainmaker
304,710
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
I find that helps in markets with lots of similar good inventory to differentiate, but not to sell a house that has weaknesses or is over priced.
Jan 11, 2007 06:23 PM #1
Rainmaker
658,918
Randy Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645

I have been surprised recently on a couple of transactions where the buyer wanted to go in my opinion too low and the seller accepted it without a counter.  I have decided that you never know what a seller may or may not jump on.

Jan 11, 2007 06:32 PM #2
Rainmaker
161,393
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner

by David Kucic, Hawaii REALTOR

Hawaii Real Estate 

Ardell-You hit the nail on the head.  That is exactly the case here.  You may have several of the like properties here with price differences from $1000 to $25,000 difference in price.  What are those sellers thinking sometimes?

Randy-I know you have done it and been successful Randy.  It is amazing what happens if you just try.  I never was worried about an agent telling me that I was "lowballing" the listing.  My philosphy (in this market) is "you should consider yourself lucky that I am bringing my client to see your listing and more importantly that we have made an offer on it".

Aloha From Hawaii,

David Kucic, REALTOR

http://www.davidkucic.com

 

Jan 12, 2007 04:23 PM #3
Rainer
52,786
Dan Allred
Allred Realty - Thousand Oaks, CA
DRE#01761967
Sellers credits are great especially on new builts. I have two listings right now that are new built houses and will most likely be offeing a credit toward closing cost very soon
Mar 03, 2007 04:06 PM #4
Rainmaker
161,393
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner

Dan-The same is true here in Hawaii with new builts. Some builders are offering great credits as well as some special new builder financing.

Aloha!

Mar 03, 2007 05:12 PM #5
Ambassador
1,709,615
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy David and Tonya

You have post some very good info for buyers. Very good job.

Have a good one

Sep 29, 2007 04:59 AM #6
Rainmaker
161,393
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner

Thanks Dale and thank you for honoring the returning Veterans with a $75 discount off your home inspection fee!  Aloha,

David Kucic RA, ABR, AHWD, e-PRO, GRI
First Sergeant, USA (Ret)
Tropic Lightning Real Estate, Oahu, Hawaii

Sep 30, 2007 09:42 AM #7
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Rainmaker
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1SG (Ret.) David Kucic

President and Owner
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