The key to selling your house in this market is financing.  If you are still in the mindset that you just have to have it priced right and they will come… “Wake up”!  In this market, the “credit crunch”, which has caused a slump in housing sales and prices, you need to think beyond the comfortable box you stay within.  Thinking outside the box will give you creative ideas.  It doesn’t take too much thinking to realize if the cause of the problem with housing is the credit fiasco, then the solution to selling is offering help with the credit problem.

While surfing the web, I came across a blog post entitled:  The Only Reason Your House Won’t Sell, by tassilyn, dated May 5, 2008.  The answer that is given for this is “price”.  I usually don’t take such an exception to an article, but this one I do.  I am not saying that everything is wrong with what is said, but it is definitely not the only reason a house won’t sell.  This is typical realtor thinking that has been taught to them for years.  “The first thing to do if the house doesn’t sell is lower the price.” 

I could not locate a full name, or an “About Me” section, or anyway to contact, and the Comment area was closed. Sorry tassilyn, I can’t give you name credit.  At least on this post there was an indication of an author.  The other posts I looked at had no name.  Here is the link:  http://realtorbloggin.com/?p=78

Here are some excerpts, and my thoughts about them.  The other writer's in italics, mine, in plain text.

“Truly there is only one reason that a property won’t sell and that is price”

Hellooo… The main roadblock in 2008 is the buyer getting financed.  The rules have changed.  Haven’t you read anything, or listened to the news this year??

“People will buy anything if the price is right.”

But… the mortgage company won’t fund it.  Certain properties that are in too much disrepair cannot be financed by traditional mortgages.

“If you are a seller sitting on a property that just isn’t moving then you really only have two options.  One - take it off the market if it can’t bring the price you need.  Or two - lower the price!  It seems like a no brainer but I can’t tell you how many times I’ve been blamed for someone’s property not selling when I’ve told them repeatedly that it’s the price not the salesperson.  No matter how good of an agent you have no one is going to buy an overpriced property especially in this market.”

The options sure are narrow.  It seems to me that may be the path of least resistance.  The easy way, and after all, blame it on the seller.  Even if the seller goes in the negative, you will get your commission.  Right?

It certainly takes more work in this market, but there are options.  Price, condition, marketing, and financing all play into whether a house sells.  These are all important.  I am going to share a few ways you can have sales, and maybe with raising the price instead of lowering.

1.      Offer owner financing.  There are a few times when the house will be paid off.  I agree, not many.  In those cases, the seller can offer owner financing.  Set the price.  Set a down payment.  Set an interest rate.  Set the amount of years (3 – 5).  After that time the buyer would have to get new financing unless you are agreeable to longer terms.  For someone that doesn’t want their equity all at one time, (for tax reasons), it is less of a burden when the taxes are spread out.  This is one time when the price can be set higher, instead of lower.

2.      Offer partial owner financing.  This can be done as a second mortgage, and can be all the equity or part of it.  Check with the lender for the first.  Sometimes they don’t want a seller second done for more than 20% of the total amount.

3.      Lease option.  This is also a form of owner financing.  The prospective buyer/tenant puts down an amount that is from 3-5% of the price to buy the option.  Then rents the property for a designated amount of time.  (Like 1-2 years.)  If the tenant takes the option of purchasing the house by the end of the term, the amount paid to buy the option, and usually a small amount monthly goes to the purchase of the home when it is financed by a typical mortgage. This is another way the price can be higher instead of lower.

4.      Look for a mortgage broker that is knowledgeable about what is out there in today’s market.  The terms and the programs are not the same in some cases, but there are buyer friendly programs.  Some of these are government sponsored.  Here is a link to a blog post that explains the programs available.  http://www.biggerpockets.com/renewsblog/2008/05/29/mortgages-that-attract-homebuyers/

These are the keys to selling in this market.  Don’t leave it to chance, become knowledgeable.  Educate your buyer, seller, and make sure your mortgage broker has the knowledge needed, and really tries to make the financing happen.

Related Posts:

The Basics of Taking Over Payments

The Smart Investors Advantage-Owner Financing

Assuming FHA and VA Loans

Selling In This Market-Owner Financing

Sell By Subject To- Selling Your Real Estate In A Credit Crunched Market

Lease Purchase: Another Key to Selling Real Estate In A Credit Crunched Market

Another Key to Selling in A Credit Crunched Market:: Lease Purchase Part 2

Owner Financing 101

The Key to Selling in a Credit Crunched Market: Financing...financing...financing

Do you have some ideas now for selling in this credit crunched market?  Remember, credit is the problem.

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