Some interesting statistics regarding selling and financing.
Its no secret that the credit meltdown has severely curtailed the number of buyers in the market. Just how bad has recently been disclosed. Up to 50% fewer people are qualifying for loans today than they were in 2006, the peak of the market.
That means that HALF have dropped off the table. Now many needed to be removed, the "sub-prime" candidates. That was a governmental meddling debacle, but that's another post.
Regardless, fewer buyers are qualifying, and many of them are still good credit risks.
So, how do you double the number of potential buyers for your property? Seller Finance.
Wait, I know what you're thinking. No way Jose.
While this may not be the most ideal option, it could just be the creative solution needed to get your property sold AND at a better price.
Consider the alternatives.
- If you live in the house, not much of a problem unless you're trying to cash out now. You can sit on the property until market conditions improve
- If the house is vacant, you can try to rent it out, then you have the land-lord issues to contend with. Plus you're on the hook for taxes, upkeep, insurance, etc.
- You can fire-sale the property to compete with all the REOs. In some cases, those are the only houses that are selling.
If your situation can allow for it, a properly structured seller finance deal can net you totally cashed out of the house in as little as 90 days. The two keys here are that you don't have an underlying mortgage to payoff (about 1/3 of all homes in the US fall under this category) and the second is that the seller note is properly configured for quick resale.
Agents, just as you recommend your sellers get professional help in selling a home, so you and your sellers need to get professional help in setting up the seller financing for proper disposition of the final paper.
I'm a RE broker, Builder and Investor. I have the expertise and country-wide private network to get your seller's deals done when all other avenues have failed.
I also have a program just for North Texas on getting your home sold faster and at a higher price with conventional financing.
Drop me an email, I'll get back to you within 24 hours.