Tough Market? Get Creative!!
As
buyers and sellers try to navigate our current Real Estate market many are
found distraught by a lack of offers, or an inability to find the “perfect”
house. While this market does have
it’s disadvantages to both parties, either can be successful by being more
creative with their offerings and/or offers. It never hurts to be creative and think (how cliché) out of
the box. Doing so can bring you to
the finish line with your needs and wants fully in tact.
Seller Creativity
As
the economy crumbled, largely due to the Real Estate burst, many buyers in the
market were left with fewer funds available for purchase. Whether their savings, 401 or portfolio
declined or their ability to finance has been reduced, these buyers just don’t
have the ability to renovate or rehab a home the way they’d like. Seller contributions are not a
new trend, but being creative with these contributions can be. A buyer will gladly finance a new
kitchen, pool or roof within a 30 year mortgage rather then coming out of
pocket. If your home lacks a
certain “panache” that today’s buyer desires, it may be a good idea to
contribute these features either before or after closing. The thought of taking a task like
this on can be intimidating, but in this market it can and will pay off.
Buyer Creativity
Regardless
of market, buyers and many agents are scared to ask for sufficient
contributions. Feeling that the
request may leave a bad taste in sellers’ mouth, most won’t even ask. We need to remind ourselves that this
is in fact a buyers market, and many sellers do understand this. While they are all trying to achieve
the highest price possible, you simply don’t know until you ask. A contribution of closings costs, or a
renovation credit may not be the norm, but are generally open to discussion in
today’s market. If you’ve found
that house would be just perfect if…..
let the sellers agent know what your thinking, we are here to make the
deal work, give it a go, you don’t know unless you ask.
Financing Creativity
Lynn
Whitefall of Goldstar Financial is one of the most creative mortgage brokers I
know and had this to say about staying creative with financing in this market –
“some creative things I use to help
buyers qualify are using money that would be used for down payment to pay down
credit card debt to qualify for their desired price range. A lot of time credit card debt
eats too far into the debt ratio and eliminates the purchasing power; so this
allows them to qualify for more and have an overall lower monthly obligation.
With Interest rates so low we can reduce the principal quickly. “
Success in this market simply calls for creative thinking; don’t be afraid to do so. Work with a team that pushes the limits and remains creative. Staying on the forefront of people’s minds while offering them what they want is step one to success. Break out of that box and throw some “crazy” ideas out, you never know what’s going to work until you try!
