Dear Steve
Thanks for the lunch invitation. Do you know that I now live in North Carolina?
You want to know how to find a seller to hold a mortgage for for you. The truth is it is harder to do than it was when I was young. The reason it is harder today, is because it is harder to talk to sellers than it was then. It is still very possible. I know it is still possible because I sold a house that I owned six months ago. We were happy to hold the mortgage. I recently sold a lakefront lot in Carolina to earn a commission. The owner held the mortgage. https://www.youtube.com/watch?v=Dbg8GFXH2To
If you are buying a house through a Realtor, they usually do not understand. If you want to find a Realtor in your area that does understand, go to www.biggerpockets.com . You can learn a lot at Bigger Pockets.
If you ask a Realtor,"Do you think the seller will hold a mortgage?", nine out of ten Realtors will reply ,"No". They won't ask the seller. They have never asked the seller. You have to learn how to ask the Realtor. You ask the Realtor,"If I put $100,000 cash down on this $150,000 house, do you think the owner would hold a mortgage for the other fifty thousand?".
Most laymen and most Realtors assume that, if you ask about owner financing, you want the seller to hold 100% mortgage. They also assume that you do not have the financial wherewithall to go to the bank. Neither of these assumptions are necessarily true.
The best thing to do is to talk to the seller directly. If you are dealing with a forsalebyowner, this is easy. Use the same technique when talking with them.
Idle chit chat is a wonderful thing. Is your house paid for? That is a nice question. Oh, it is not. How much do still owe? Just chit chatting. Is making payments on this empty house a financial burden for you? Where are you probably going to invest the proceeds of this sale? Chit chat.
What do you think? If a couple is living in a free and clear house, do you think they are broke? Do you think they probably have a lot of money invested elsewhere? If this is a vacant rental house that the seller owns, why would he NOT want to hold a mortgage for you? There is only one reason I can think of. He is trepidatios about you making the payments. How can we make the fear go away? Ask him. More down payment is the most common answer.
Talk to Mr. Seller. Ask about his kids and grandchildren. Shoot the breeze. Ask him about his hobby. Ask him if he owns other investment property. Ask him if owning investment property and being a landlord has been a pleasant experience. Ask him how he got started. If you own other rentals with owner held mortgages, mention that in conversation. Make him a firm offer. Offer him an interest rate that he can not get at the bank. A savvy investor will understand that 5 or 6 per cent is pretty good rate in today's world. An unsophisticated investor may still want "the cash". What are they going to do with all that cash? Whatever it is, they can do the same thing with your payments. Which inheritance would be more beneficial to your twenty year old grandson , $50,000 cash or $350 a month for the next thirty years? That fifty grand would not last two years. Explain that gently to Mr and Mrs. Seller.
Often, when a house is listed with a Realtor, it is hard for you, a layman, to talk with the seller. A listing Realtor and a selling Realtor are bound by MLS rules and Association of Realtors code of ethics. You, as a layman, are not bound by any such rules. Talk to the seller. You are not breaking any rules. That is how Kathy and I bought the house that we currently live in in Carolina. We rode past the house and saw the Realtor's sign in the yard. The sellers were sitting on the front porch drinking Busch Light beer. We stopped. We drank a Busch Light. Rick and Murl and Kathy and I negotiated the deal right on the front porch. We called the listing agent. She drew up the paperwork. We all went to closing.
Realtors discourage their sellers from talking to buyers. Some listen. Some do not. You, as a layman, can talk to to the seller directly. Why would you not? Most Realtors do not want the seller and the buyer talking to each other directly for fear that the transaction may happen without the Realtor getting paid. You be certain that that does not happen. The listing agent has earned his commission as soon as the listing is signed. Do not suggest to the seller that that commission does not need to be paid. That will get you sued. It will not get you where you want to be, a house owner with owner financing.
You, Mr. Layman, are violating no law or rule to talk to the seller directly. Your real estate agent would be violating the rules of the MLS if he talked to the seller. The listing agent may discourage the seller from talking to you directly. I do not understand why. If it is my listing, I just want to go to closing. Every Realtor does not feel that way. The good news for you, as a layman, is the listing agent would have no reason to call or contact you directly. That would be a violation of the rules of the MLS.
Show the seller this article. http://rondclimer.blogspot.com/2015/01/can-owner-finance-house-in.html Let the seller know that your payments will will be on time every time. Get the seller to like you and trust you. That is another article.
Remember this. Some will. Some won't. So what? Next. You may have to talk to a lot of sellers to find one. You may find the first seller you talk to is ready. You have to kiss a lot of frogs before you find a handsome prince.
Also, you need to educate yourself. Read about owner held financing. Study it. Talk to people that own mortgages. Ask them how they like it. Almost all will tell you they like it. If interest rates go back to 12%, that might change. In today's economy, holding a mortgage is a good idea for any seller that doesn't need the money to pay next month's bills. You need to be able to explain the benefits of holding a mortgage to the seller. Unless you are in Hendersonville, North Carolina, you will not have me as your Realtor. If you can find a Realtor that does understand, your problems are over. Good luck with that. http://ronclimer.blogspot.com/2014/03/where-do-you-find-sellers-that-will.html
You need to believe in holding a mortgage. Start looking at houses and talking to sellers. You won't believe where it leads you. Call me anytime if you need or want specific advice.
www.ronclimer.com
Showing posts with label owner financing. Show all posts
Showing posts with label owner financing. Show all posts
Tuesday, April 19, 2016
Saturday, January 24, 2015
Nine Things You Can Do To Get Your Hendersonville House Sold Faster
As a Realtor in Hendersonville, North Carolina, I often speak with people that have there house listed with a Realtor. Sometimes, they wish the sales process was going faster. Do not leave the entire burden of getting your house sold in Hendersonville entirely to your Realtor. There are some things that you can do to speed up the process.
The number one, best, easiest, most important thing you can do to be sure that your Hendersonville house sells quickly is to be sure it is priced right. Be certain that your house is not listed with a Hendersonville Realtor for more than it is worth. How can you be certain? Order an appraisal from a professional appraiser. You don't have to ask your Realtor if it is OK. Just do it. Google appraisers in Hendersonville, North Carolina. Pick one. Order an appraisal. It will probably cost about $300. Mr. Appraiser is not trying to impress you. He is not trying to list your house. He is a licensed expert. You pay him $300 for his expert opinion. This is money well spent. If your house is worth $300,000 and you have listed it with a Realtor for $339,000, don't start packing. Once you have paid Mr. Expert for his expert advice, believe him. If he tells you your house is worth $300,000, call your Realtor and lower the price.
The second thing you can do to get your house sold quickly is clean up, fix up, spruce up. When potential buyers look at your house, the buyers can not see beyond the sellers saying "excuse our mess".
If the house is spotlessly clean, that is what the buyers see. If the house looks like Good Housekeeping magazine has cancelled your subscription, that is what the buyer sees. Buyers have no imagination. They perceive that it will look messy when they own it. Buyers can not imagine something repaired. If the window is broken, fix it. Mr. Buyer can not imagine it repaired. Many of the houses listed in the Hendersonville MLS have too much furniture. Less is more should be the watch word of home sellers everywhere. Get rid of big bulky furniture. The smaller your house, the more you need to read this paragraph twice.
When you listed with Great Big Realty, Mr. Salesman probably promised to advertise your house here and there and everywhere. That is fine. That is great. Feel free to advertise your house yourself. Any free advertisement that you can do will help. Mention on your Facebook that your house is for sale. If you blog, write a blog about your house being for sale. Write a blog about how wonderful your neighborhood is. Put one of those "make me sell my house" ads on Zillow Craigslist is free. Put an ad on Craigslist. Put your address and your Realtor's phone number . I can not imagine any Realtor objecting to that. Advertise your house in your church bulletin. Send out post cards to your neighbors. Any good Realtor has already done that but do it again. Tell ALL your friends that your house is for sale . Don't be a secret seller. The more people that know your house in Hendersonville is for sale, the faster it will sell.
Another very important thing that you can do is be super co-operative with other Realtors that want to show your house. Since most showings are through co-operating Realtors through the Hendersonville MLS, be cordial and knock yourself out to let them show your Hendersonville house when they want to show it. Mr. co-op Realtor is usually responding to the whims and desires of the buyer. If Ms. Realtor wants to show your house at 9:30 on Sunday morning. That is just unreasonable. You can say no. You can, but if you do say no, that buyer that is only in town for the weekend and has to make a decision before the plane leaves at 6 on Sunday night is not going to see your house. Ron says, if the buyer wants to see your house during halftime of the Super Bowl, let them. The more cooperative you are with showing agents, the faster your house will sell.
Another thing that you can do to make your house sell faster is to raise the commission. If you have agreed to pay your Realtor a six per cent commission, he has put your Hendersonville house listing in the Hendersonville MLS offering a three per cent co-op fee to the showing real estate company that helps him find a buyer.
Ho Hum There is your $300,000 Hendersonville house in the MLS with a 3% coop fee just like all the rest of the ten Hendersonville houses that suits the buyer's needs. What if you paid your Realtor a seven per cent commission? Your Realtor advertised a three and a half per cent co-op fee to the showing agency. The co-op agent would show your house first and most enthusiastically. I don't want you to get the impression that Realtors are money motivated. Remember that Realtor that wanted to show your house on Sunday morning at 9.30. That Realtor is money motivated. I am certain of that.
Here is another thing that you can do to get your house sold quickly. Encourage offers. If a co-op agent shows your house, let them know that you are ready to move. There are all kinds of laws and ethics and customs that restict what Realtors tell each other. You, Mr. Seller are not bound by any of that. Tell the co- op agent that you want an offer. You don't have to sound desperate. Just let them know that you are tired of keeping the house clean as a pin twenty four hours a day. A common practice among Realtors is for the showing agent to report "feedback" to your listing agent. Tell your listing agent to tell the co-op agent that we want an offer. I would rather be offended by a low offer than have no offer at all. If you followed my previous advice and have your house properly priced, this might seem unnecessary. It is necessary. Encouage offers. If you are asking $300,000 and the buyer offers $299,000, would you take it? If you received a $275,000 offer, do you think your Realtor could negotiate and acceptable price from there?
The next thing I can suggest to help you get your house sold quickly is to remind you that objectivity is good for business. Emotion is bad for business. We want the buyer to get emotional . Mr. Seller, get your emotions out of this business transaction. This is strictly business. Mr. Buyer does not care about all the pleasant memories that you have attached to the house. He is not going to pay an extra $1000 because your daughter got married in the house five years ago. Mr. Buyer does not care that you made $10 a month payments for thirty six months on that avocado green refrigerator in the kitchen back in the seventies.
Take the emotion out of this business transaction. Your house will sell faster.
Another thing that you can do to make your house sell faster is make financing easy for the buyer. Through the years, I have had sellers tell me that they don't want to sell their house with a VA (Veteran's Administration) mortgage because it is too much trouble. When you consider that a military veteran can buy a $400,000 house with not one penny down payment, that is a group of buyers that I would not want to avoid. Anything that you can do to make financing easier for a buyer, The faster your house will sell. You might even consider holding the mortgage yourself. Where else can you get any interest in today's market. Watch this video about that. https://www.youtube.com/watch?v=pRyWo--Wg0I Anything you can do to make financing easy and affordable is a good thing and will make your house sell faster. Ask your Realtor to make a chart of the three easiest ways to finance your house and attach it to the brochure that he left in your foyer. The easier it is to finance, the easier it is to sell. It is axiomatic.
My next suggestion is be honest with yourself. Be honest with your Realtor. I have been selling real estate for thirty years. If someone asked me,"What is the most common lie you have heard in your real estate career?", my answer would be sellers telling me ,"We don't have to sell." Sellers tell me this when their house is being foreclosed on. Sellers tell me this when they are in Chicago and they are making payments on an empty house in Hendersonville, North Carolina. Sellers tell me this when they have three kids and are living in a thousand square foot two bedroom house and one of their kids in sleeping in the garage. Why do people lie to themselves and say," We don't have to sell"? Be honest with yourself. Tell yourself and your Realtor," Our life will be much more pleasant when someone else owns this house."
Get your house sold. If I can do any thing to help you sell a house near Hendersonville, North Carolina, contact me at 828 755 6996 or www.ronclimer.com or www.hendersonvillekw.com
The number one, best, easiest, most important thing you can do to be sure that your Hendersonville house sells quickly is to be sure it is priced right. Be certain that your house is not listed with a Hendersonville Realtor for more than it is worth. How can you be certain? Order an appraisal from a professional appraiser. You don't have to ask your Realtor if it is OK. Just do it. Google appraisers in Hendersonville, North Carolina. Pick one. Order an appraisal. It will probably cost about $300. Mr. Appraiser is not trying to impress you. He is not trying to list your house. He is a licensed expert. You pay him $300 for his expert opinion. This is money well spent. If your house is worth $300,000 and you have listed it with a Realtor for $339,000, don't start packing. Once you have paid Mr. Expert for his expert advice, believe him. If he tells you your house is worth $300,000, call your Realtor and lower the price.
The second thing you can do to get your house sold quickly is clean up, fix up, spruce up. When potential buyers look at your house, the buyers can not see beyond the sellers saying "excuse our mess".
If the house is spotlessly clean, that is what the buyers see. If the house looks like Good Housekeeping magazine has cancelled your subscription, that is what the buyer sees. Buyers have no imagination. They perceive that it will look messy when they own it. Buyers can not imagine something repaired. If the window is broken, fix it. Mr. Buyer can not imagine it repaired. Many of the houses listed in the Hendersonville MLS have too much furniture. Less is more should be the watch word of home sellers everywhere. Get rid of big bulky furniture. The smaller your house, the more you need to read this paragraph twice.
When you listed with Great Big Realty, Mr. Salesman probably promised to advertise your house here and there and everywhere. That is fine. That is great. Feel free to advertise your house yourself. Any free advertisement that you can do will help. Mention on your Facebook that your house is for sale. If you blog, write a blog about your house being for sale. Write a blog about how wonderful your neighborhood is. Put one of those "make me sell my house" ads on Zillow Craigslist is free. Put an ad on Craigslist. Put your address and your Realtor's phone number . I can not imagine any Realtor objecting to that. Advertise your house in your church bulletin. Send out post cards to your neighbors. Any good Realtor has already done that but do it again. Tell ALL your friends that your house is for sale . Don't be a secret seller. The more people that know your house in Hendersonville is for sale, the faster it will sell.
Another very important thing that you can do is be super co-operative with other Realtors that want to show your house. Since most showings are through co-operating Realtors through the Hendersonville MLS, be cordial and knock yourself out to let them show your Hendersonville house when they want to show it. Mr. co-op Realtor is usually responding to the whims and desires of the buyer. If Ms. Realtor wants to show your house at 9:30 on Sunday morning. That is just unreasonable. You can say no. You can, but if you do say no, that buyer that is only in town for the weekend and has to make a decision before the plane leaves at 6 on Sunday night is not going to see your house. Ron says, if the buyer wants to see your house during halftime of the Super Bowl, let them. The more cooperative you are with showing agents, the faster your house will sell.
Another thing that you can do to make your house sell faster is to raise the commission. If you have agreed to pay your Realtor a six per cent commission, he has put your Hendersonville house listing in the Hendersonville MLS offering a three per cent co-op fee to the showing real estate company that helps him find a buyer.
Ho Hum There is your $300,000 Hendersonville house in the MLS with a 3% coop fee just like all the rest of the ten Hendersonville houses that suits the buyer's needs. What if you paid your Realtor a seven per cent commission? Your Realtor advertised a three and a half per cent co-op fee to the showing agency. The co-op agent would show your house first and most enthusiastically. I don't want you to get the impression that Realtors are money motivated. Remember that Realtor that wanted to show your house on Sunday morning at 9.30. That Realtor is money motivated. I am certain of that.
Here is another thing that you can do to get your house sold quickly. Encourage offers. If a co-op agent shows your house, let them know that you are ready to move. There are all kinds of laws and ethics and customs that restict what Realtors tell each other. You, Mr. Seller are not bound by any of that. Tell the co- op agent that you want an offer. You don't have to sound desperate. Just let them know that you are tired of keeping the house clean as a pin twenty four hours a day. A common practice among Realtors is for the showing agent to report "feedback" to your listing agent. Tell your listing agent to tell the co-op agent that we want an offer. I would rather be offended by a low offer than have no offer at all. If you followed my previous advice and have your house properly priced, this might seem unnecessary. It is necessary. Encouage offers. If you are asking $300,000 and the buyer offers $299,000, would you take it? If you received a $275,000 offer, do you think your Realtor could negotiate and acceptable price from there?
The next thing I can suggest to help you get your house sold quickly is to remind you that objectivity is good for business. Emotion is bad for business. We want the buyer to get emotional . Mr. Seller, get your emotions out of this business transaction. This is strictly business. Mr. Buyer does not care about all the pleasant memories that you have attached to the house. He is not going to pay an extra $1000 because your daughter got married in the house five years ago. Mr. Buyer does not care that you made $10 a month payments for thirty six months on that avocado green refrigerator in the kitchen back in the seventies.
Take the emotion out of this business transaction. Your house will sell faster.
Another thing that you can do to make your house sell faster is make financing easy for the buyer. Through the years, I have had sellers tell me that they don't want to sell their house with a VA (Veteran's Administration) mortgage because it is too much trouble. When you consider that a military veteran can buy a $400,000 house with not one penny down payment, that is a group of buyers that I would not want to avoid. Anything that you can do to make financing easier for a buyer, The faster your house will sell. You might even consider holding the mortgage yourself. Where else can you get any interest in today's market. Watch this video about that. https://www.youtube.com/watch?v=pRyWo--Wg0I Anything you can do to make financing easy and affordable is a good thing and will make your house sell faster. Ask your Realtor to make a chart of the three easiest ways to finance your house and attach it to the brochure that he left in your foyer. The easier it is to finance, the easier it is to sell. It is axiomatic.
My next suggestion is be honest with yourself. Be honest with your Realtor. I have been selling real estate for thirty years. If someone asked me,"What is the most common lie you have heard in your real estate career?", my answer would be sellers telling me ,"We don't have to sell." Sellers tell me this when their house is being foreclosed on. Sellers tell me this when they are in Chicago and they are making payments on an empty house in Hendersonville, North Carolina. Sellers tell me this when they have three kids and are living in a thousand square foot two bedroom house and one of their kids in sleeping in the garage. Why do people lie to themselves and say," We don't have to sell"? Be honest with yourself. Tell yourself and your Realtor," Our life will be much more pleasant when someone else owns this house."
Get your house sold. If I can do any thing to help you sell a house near Hendersonville, North Carolina, contact me at 828 755 6996 or www.ronclimer.com or www.hendersonvillekw.com
Subscribe to:
Posts (Atom)