This blog post is inspired by some of the lease purchase and owner finance listings that I've called on recently for some of my home buyer clients and prospects.
First of all I'm glad to see that some of the Sellers or their Agents took my advice and started offering more financing choices to sell their homes, because the listings that offer creative financing doubled after I began blogging about it.
But some of the Sellers or their Agents are clearly not getting the picture, so I'm going to break it down for you.
Having successfully closed several transactions as a Buyer's Agent over the past few months I know what the typical home Buyer is looking for.
The Buyer who would need to utilize lease purchase or owner financing is looking for something relatively simple to get into with a down payment of about 3-5% of the offer price and a fair monthly payment amount with no hassle about bad credit. These terms are negotiable.
We're supposed to negotiate terms between the Buyer's Agent and the Seller's Agent so I've been shocked when I call on a $39,900 older 3 bedroom 1 bathroom home that's listed as a fixer upper and the Seller wants $15,000 down payment firm. Really, are you serious??????????
The Seller's Agent says the Seller is going to renovate it and raise the price to $100,000, then how much will he want for the down payment $60,000??? Clearly this Seller and/or their Listing Agent have no clue as to who they're marketing the home to.
That particular home has already been on the market 6+ months at the current price and that price is a little higher than fair market value.
The home buyers who are looking at homes in the $39,000 price range are not likely to have $15,000 saved up and if they do, there's a better deal out there for them.
Another owner finance listing I came across mentioned a 2 year balloon payment with $15,000 down but the home needs lots of repairs (per the listing). Lots of repairs and you want $15,000 up front and a balloon payment in 2 years, what money would the Buyer have left for the repairs??
These are just a couple of samples from homes that I've come across and they've been sitting on the market for a long time, it's no wonder why. I've successfully negotiated lease purchases and rent to own homes for less- $300k home for $5700 down; a $200k home for $4800 down; $168k home for $3900 down; etc.
The problem stems from an unrealistic Seller, greed on the Seller or their Agent's side or an Agent who's afraid to be honest with the Seller for fear of not getting the listing.
Regardless of the reason, the house will sit vacant not making any money for anyone.
If you need to sell your home in Georgia, I'd like to schedule a meeting with you to discuss your options and the pros and cons of each option so you can make a decision according to what's best for you and my plan to get your home sold in a timely manner.
If you want to buy a home in Georgia, I'd like to schedule a meeting with you to discuss your options and what's available on the market for you.
Call text or email me
Fix Your Credit
Buy A House
First of all I'm glad to see that some of the Sellers or their Agents took my advice and started offering more financing choices to sell their homes, because the listings that offer creative financing doubled after I began blogging about it.
But some of the Sellers or their Agents are clearly not getting the picture, so I'm going to break it down for you.
Having successfully closed several transactions as a Buyer's Agent over the past few months I know what the typical home Buyer is looking for.
The Buyer who would need to utilize lease purchase or owner financing is looking for something relatively simple to get into with a down payment of about 3-5% of the offer price and a fair monthly payment amount with no hassle about bad credit. These terms are negotiable.
We're supposed to negotiate terms between the Buyer's Agent and the Seller's Agent so I've been shocked when I call on a $39,900 older 3 bedroom 1 bathroom home that's listed as a fixer upper and the Seller wants $15,000 down payment firm. Really, are you serious??????????
The Seller's Agent says the Seller is going to renovate it and raise the price to $100,000, then how much will he want for the down payment $60,000??? Clearly this Seller and/or their Listing Agent have no clue as to who they're marketing the home to.
That particular home has already been on the market 6+ months at the current price and that price is a little higher than fair market value.
The home buyers who are looking at homes in the $39,000 price range are not likely to have $15,000 saved up and if they do, there's a better deal out there for them.
Another owner finance listing I came across mentioned a 2 year balloon payment with $15,000 down but the home needs lots of repairs (per the listing). Lots of repairs and you want $15,000 up front and a balloon payment in 2 years, what money would the Buyer have left for the repairs??
These are just a couple of samples from homes that I've come across and they've been sitting on the market for a long time, it's no wonder why. I've successfully negotiated lease purchases and rent to own homes for less- $300k home for $5700 down; a $200k home for $4800 down; $168k home for $3900 down; etc.
The problem stems from an unrealistic Seller, greed on the Seller or their Agent's side or an Agent who's afraid to be honest with the Seller for fear of not getting the listing.
Regardless of the reason, the house will sit vacant not making any money for anyone.
If you need to sell your home in Georgia, I'd like to schedule a meeting with you to discuss your options and the pros and cons of each option so you can make a decision according to what's best for you and my plan to get your home sold in a timely manner.
If you want to buy a home in Georgia, I'd like to schedule a meeting with you to discuss your options and what's available on the market for you.
Call text or email me
Priscilla Hammond
1st Choice Premier Realty Group
Maximum One Realty Greater Atlanta
404.503.6562 Mobile
"With FAITH you can move mountains,
with DOUBT you can create them."
"With FAITH you can move mountains,
with DOUBT you can create them."
Buy A House
