What do you feel is the
best way to sell your home? Perhaps have an open house. Improve the looks
inside and out. Advertise the special features of the home. Number of
bedrooms, bathrooms, big back yard with a deck, a pool, double garage and so
forth. Maybe the best way to sell your home is the sales price. It compares to
others that have sold in your neighborhood. Or, your price might be a little
less than other homes. How about cinnamon rolls baking in the oven when you
show the home. That aroma certainly gives the home a nice touch. We could go
on with more sales suggestions. However, we think you get the idea.
These sales methods
have their good points. But most home sellers over look the most powerful
method for selling a home quickly. We’re going to give you the method right
now. We call it the "Secret Sales Weapon". It produces buyers instantly. The
strategy consists of three magic words. This is the strategy.
"OWNER WILL FINANCE"
Imagine going through
the classified section of the paper. You see several ads of homes for sale.
Most of the ads stress the unique features of each home. All of a sudden you
come across an ad that says the following.
"OWNER WILL FINANCE -- FOUR
BEDROOM TWO BATH COLONIAL. JEFFERSON PARK".
We can promise that
will be the first ad you call. In fact, that ad will be called by more buyers
than any other ad. The reason is very simple. The words "Will Finance" sends a
motivating sales message to every home buyer. The buyer says, "this house can be
bought fairly easily. There won't be lots of red tape".
Think about it. Home
sellers wanting all cash eliminate a huge percentage of buyers. Cash buyers are
hard to come by. All cash requires most buyers to qualify for a loan. Bank
loans are time consuming. They require home buyers to meet lots of rigid
guidelines.
All cash actually
blocks people from buying your house. Those stiff bank qualifications create a
sales barrier. We feel that most buyers may have reasonable credit and decent
incomes. But the stiff bank requirements stop a lot of buyers. However, when you
eliminate some of the stiff requirements, the financial obligation of paying for
the home is really no problem for a large number of these buyers. You and I
ought to be selling to these people. Yet the banks are the barrier standing in
the way. Owner financing blasts away this barrier.
Let’s review what we
have told you so far.
The fastest way to sell
your home is to offer owner financing. This means you sell your home on
contract. Your buyer puts down 10 to 20 percent in cash. They sign a contract
that obligates them to pay you the remaining balance over a period of years.
Five, ten or maybe fifteen years.
We know what you're
thinking at this point. You’re saying to yourself, “You told me you have a
method for selling my home fast. I can get all cash. If I offer owner
financing how will I get all cash?"
We'll answer that
question by describing the following example. Let's say someone has a home they
want to sell. The house is put up for sale with an all cash price. There is
some response from buyers. But most of them are having trouble securing
financing. Weeks and months go by without a sale. The home seller starts to
feel depressed.
One day the home seller
receives a phone call. The person introduces themselves as a contract buyer.
The contract buyer purchases real estate contracts and mortgages for cash. The
contract buyer says, "Your home will sell fast if you offer owner financing."
The contract buyer tells the home seller, “If you will structure the contract
with the right terms, I will buy the contract from you for CASH a few
days after the sale."
This is how simple it
can be to sell your home quickly and get all cash. You offer to sell your home
on contract. Pick the best home buyer and close your sale. A few days later
you simply take your contract and sell it for CASH to a contract buyer.
Owner financing will
instantly multiply the number of eager buyers for your home. It gives you the
ability to sell fast, because you're offering terms rather than cash.
If you're in a
financial position where you don't need all cash, a contract can be a great
investment. Home sellers usually want to invest the money they get from their
home sale. Our reply is, “Why not invest in something you already know about?"
In this case your own home. You can defer paying taxes on the gain. Plus,
you'll get a better interest rate than banks pay. You get a nice income secured
by your home. You understand it. You know the value. If you need to raise
cash in the future you can always sell the contract.
The home buyer benefits
by getting terms that are favorable. They have cut out the hassles of bank red
tape. They have also saved the cost of paying points and loan origination fees.
There are so many ways
people can benefit from owner financing. Home sellers can sell a house quickly
on their own. Real estate agents can sell listings faster. Owner financing
solves problems with homes that don't qualify for bank loans. The zoning may
not be right. Or, there’s an easement or access problem.
We recently visited
with a home seller who had a house located on a street not paved. The bank
wouldn't loan on that house because of the unpaved street. The sellers offered
owner financing, and the house sold immediately. When the sale closed they
instantly sold their contract for cash.
Developers and
contractors can use owner financing to sell property fast. Raising cash is no
problem. Just sell the contracts.
Owner financing can
solve problems with couples involved in divorce who need to sell a home. When
the home sells the contract can be sold for cash. The proceeds can then be
divided between the couple. This is something that can be useful to attorneys
who handle divorces. It can also work for people dissolving partnerships.
The bottom line is
owner financing solves more problems, and gets homes sold faster than any
technique we know of. We’ll cover more strategies for selling fast in section
two of this manual.
