Is it possible to create a "Sellers" market in this "Buyers" market we have been in for the past few years?
Let's take a look at a situation and you decide.
If a person has a home he wants to sell, the obvious issue he has to deal with is that there are too many homes on the market that he is competing against. What makes his home different? Why does his home standout above the rest that will allow him to sell faster? We have a supply and demand issue - too many homes, prices dropping and a long time to sell. Add to this equation the difficulty for many people to get the required financing and the typical seller may have a problem in getting his home sold quickly.
Let's take a look at some of the "unqualified buyers" out there looking at homes right now.These are people who are ready to buy, BUT, maybe they are self employed or maybe they have a new job and have not been there long enough, etc. The bottom line is an issue exists that prevents an otherwise "qualified" buyer from obtaining the necessary financing in today's climate. But, they are BUYERS!
So, let's say we have 25 homes in a particular area that are currently for sale. And let's say we have 1 potential buyer looking at each of these homes, so we have 25 buyers looking at 25 homes for sale. If 20 of those 25 potential buyers are "unqualified" because they do not meet some current criteria for traditional financing, that means we have only 5 "qualified" buyers for 25 homes. These are not good odds for our seller !
If in this climate 1 of our 25 sellers decides to offer seller financing,
would you agree that he has now expanded the market of potential buyers? The 20 "unqualified" buyers may now gravitate to this particular seller because he has solved the financing issue for them. They are ready buyers and otherwise qualified. If his home is as marketable and attractive as the competing homes, he has increased his possibility of getting his home sold. Since he has solved the financing issue, this seller is in a stronger position to get a price closer to his asking price and to design terms on the note that are not only good for the buyer but tend to favor him as well. If my ratios aren't quite accurate ( who really knows ), I hope you understand the point I am trying to make.
And, as discussed so many times in this Newsletter, if the seller does not want to be a "landlord", he can sell his note for cash after receiving about 6 months payments.
The end result is that this seller may have found a way to create a positive market for himself, sell his home at a price he can live with and find a buyer who is ready, willing and otherwise"qualified".
Summer Dessert
I live in the desert and it gets pretty hot here. Many years ago, a friend shared a recipe that is very simple and perfect for these hot days. Give it a try - I know you will love it.
Lemon Ice Cream Pie
You need 1 cup of cream, 2 tablespoons of sugar, 1 teaspoon of vanilla and 1 tablespoon of orange liqueur. In a small bowl, whip the mixture until it is stiff, then spread it on the bottom and sides of a 9 inch deep pie plate. Freeze until firm.
When firm, take 2 cups of cream, 1 cup of sugar and 1 grated lemon
and stir until the sugar is dissolved. Take out any lemon pits and large membrane pieces. Pour into the frozen shell and freeze until firm.
Serve with blueberry, raspberry or strawberry and a little chocolate syrup. Be sure to run off all the sugar later. Enjoy!
You can find this dessert and many other recipes and fun stories in my new book Food Stories. Just click here for a free chapter and video.
Buy Probate Properties
On August 28 and 29 in Las Vegas, my friends Diana Hill and Ken Stimson will be teaching their class on how to find and buy probate properties at 30%-50% below market value. This is a niche market that is totally under the radar screen and little known to most real estate investors. If you are looking for a more personal way to buy property in today's market and want to learn from two experienced and trustworthy professionals, this is your answer. Just click here for all the details. A discount is available prior to August 1.
And, I will be on the program talking briefly about the use of seller financing in this marketplace.
Regards,
Denny Stanz
760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteBuyerLLC.com
|
