Handy Tips to Sell That House Quick
You ordered the sign “We Buy Houses Quick”, you put them all up everywhere and now your phone is ringing off the hook! People are calling you and want to know if you can buy their home by the end of the week. Your calendar is full with appointments and you are starting to feel overwhelmed! The truth is you have never done a real estate deal even though you have spent many hours watching the “how to” videos and seminars. You can answer all of the questions in your sleep, but what happens when you actually get in front of your motivated seller?
First, take a breath and step back. Having these appointments are awesome!
The Truth About the Real Estate Market
One of the many reasons the traditional real estate market is stagnate and people are having a hard time selling comes down to a lack of buyers. Actually, the truth is there are not a lack of buyers, there are a lack of buyers who can get traditional funding. The point of this article is to introduce you to some ideas that may be new, ideas you may have not thought of when it comes to talking to your motivated seller who is looking at listing their home.
Your First Advantage – You Are Not A Realtor
When you meet with your seller he or she more than likely already knows the options they face if they list with a traditional agent. However, often they don’t know that selling their home traditionally will actually cost them money.
If the seller works with you, let them know that more than likely they will not have to pay any of the traditional fees like commissions which is a percentage of the sales price, traditionally between 5 to 8 percent. Some other expenses include:
- Appraisal Costs
- Inspection Costs
- Service Fees
- Miscellaneous Fees
They may have to pay some closing fees, so make sure you don’t include the closing costs in the items they don’t have to pay.
Offer the Seller’s Asking Price
One way to assure that you get your desired property under contract is to offer the price that your seller is asking for. Negotiation is a part of nearly every real estate deal and you should never make an offer on a property that is not a workable / profitable deal for you. However, if there is money to be made at the sellers asking price and if you want to get the house under contract, perhaps being an expert negotiator is only going to hinder you. You may reconsider and be more flexible to your sellers requests in order to make them a fair offer.
If You Are Interested In Selling The House Quick, Read On
There are many creative strategies you can use to sell a home that are not talked about in traditional real estate or in everyday conversations. When other traditional tactics fail, creative real estate strategies are often used to sell a home. Below is a brief introduction to some of the most popular.
Purchasing real estate “Subject-To” is an investment strategy that allows investors to acquire a property with little or no money out-of-pocket by leaving the seller’s existing mortgage in place. More simply, the investor does not have to get a loan through a bank or a hard moneylender.
Often Subject-To deals are called “Subject-To“ because the property is purchased “subject to” the existing loan or loans.
A Mortgage Assignment is assigning the current mortgage exactly as it is (exact payment and exact years left on the loan) so it’s a great deal for the buyer, especially since the effective interest rate is lower the more years the loan has been paid down. However, you can wrap the loan if you want, you can also create negative or positive cash flow within the monthly payment.
If you choose to do what I just mentioned, (create cash flow in the monthly payment), this is called a Wrap Around Mortgage. A wrap around mortgage occurs when a seller or investor agrees to carry a note on a property that already has financing in place. The buyer will pay the seller or investor the monthly agreed on amount which is more than the actual loan is worth, which allows the seller/investor to make a profit.
Another effective strategy to make money in real estate is Wholesaling. You are doing just that, wholesaling houses. This method is similar to what happens in the retail market. A product is bought at a lower price and then sold by the “middleman” to a buyer at a higher price. In this case you would be the “middle man” and you would make a small profit off of every house you sold.
As previously mentioned, knowing why you’re selling can be as vital as knowing when you should sell. The tips in this article gave you some new perspectives and insights about the best practices for selling houses and being satisfied with the end result. Utilize them to make the process much more profitable and a lot less stressful!
If you’d like to learn more about building passive income by buying and selling real estate for a profit with no money down using strategies like subject-to and wrap around mortgages, then check out our very affordable REI Rockstars Back Stage Access Coaching Series for both new and seasoned investors!
If you prefer not to stay in the middle of transactions and simply want to sell your contracts for a quick fee, then you’ll want to learn more about how to do mortgage assignments and wholesaling, and we teach that in our coaching series as well! For under $100/mth, you’ll learn Four (4) No Money Down Real Estate Investing Strategies so that you can better evaluate the deals you come across in order to make maximum profit!