HOW TO SELL?
I am rehabbing a property and would like to know ideas of what the best way to sell the house would be. Any and all ideas are appreciated.
I have it listed on a few websites. It is listed here on TCI as well.
Thanks for any help.
Lease Option, Agreement for Deed, Cash out financing.
Those are 3 ways. You need to ask yourself. When and how do you want your money.
As far as marketing?
Do a neighborhood search. Direct Mail to each house within 4 blocks. Let them know that you can provide something like a BRIBE. TV, Dinner out....you get the IDEA.
SEND a flyer to all Mortgage Brokers Tell them what you have.
Send a FLYER to REALTORS same as above.......maybe ad 3% in the deal for them.
Directional signs to property, with a FLYER box outside.
HTH
Those are outstanding ideas JR. Also, as an ex-marketing exec. you want to figure out, "Who" would want this home...
First time homebuyer? Then drop fliers or mail to nearby apartments - and the ability to offer creative financing to the buyer is a great edge
Family with Children? Drop fliers/mail to local schools, little league clubs, etc. - where you'd catch parents with kids
Retired or Couple without children? Wherever they may be associated.
A friendly and respectful phonecall is very effective before you spam an ads - i.e. calling the school president and asking if you can place a flier on their bulliten board.
You get the picture... Marketing is strategy and tactics:
Knowing who would buy it and where to find them is strategy
How to sell it (JR's great ideas) are tactics...
Best of Luck!
I like to place a sign in the yard which reads "Help pick your new neighbor $500.00 reward". I also send a fact sheet to all local real estate offices and I offer my 5/4/3 program.Which means if they bring me a buyer within the 1st 30 days and the buyer closes within 30 days of viewing the property,they receive a 5% coop fee. 31-60 days a 4% coop fee. 61-90 days a 3% coop fee. after 91 days 2.5% coop fee. These 2 programs have helped me sell 90% of my properties within 60 days of rehab completion. Give neighbors and realtors an incentive to help sell your property.
These are all great suggestions.
Another way for rehabbers that works very well is use temporary owner financing to maximize the pool of buyers you have to select from, while not needing to pay any realtors fees whatsoever (unless you want to pay 2.5-3% to a buyers agent for bringing a buyer to the table for you).
You place an ad saying "Owner Will Finance" then state all the positives of the property. Your phone will ring quite a bit. Then you pre-screen these buyers with a list of questions, since you are financing them.
Once you have the best buyer picked out, you can work with a note broker who deals DIRECTLY with note buyers to structure the sale of the new note you are carrying back temporarily via a simultaneous closing. The note will be bought at a discount, but every attempt is made to minimize that discount based on the collateral (single family owner occupied is best) and the credit profile of the buyer.
Example:
FMV: $200k (based on appraisal)
DP: $20k
1st Lien note: $180k
This new note would then be purchased at closing AFTER you have taken back the note for approximately $158k-$168k, plus or minus depending on the variables at work.
Add the down payment to your cash proceeds, and you would walk away with between $178k-$188k, having offered one-stop shopping to your buyers (property and financing), while saving your buyer from having to jump through the hoops of bank financing plus all the junk fees that are added, which are really just interest disguised as fees.
You would have a written purchase agreement with standard contingencies so you are secure knowing that you will not get stuck with holding the note.
Obviously this kind of deal requires a few things to make it work:
1. Motivation of seller (as a rehabber, you've got plenty of motivation to realize profits sooner as opposed to later)
2. Motivation of buyer (buyers who do not have perfect credit or who simply do not want to deal with banks)
3. Equity in the house to make an acceptable profit for your efforts (meaning the value at which you bought is substantial enough when compared with your holding costs and repair costs)
Sales and marketing costs are reduced substantially with this, and these deals can close fairly quickly in about 2-4 weeks.
Let me know if you have any other questions or need clarification.
Best of luck! - Dave
Quote:
On 2004-04-14 10:27, MichaelChandler wrote:
I like to place a sign in the yard which reads "Help pick your new neighbor $500.00 reward". I also send a fact sheet to all local real estate offices and I offer my 5/4/3 program.Which means if they bring me a buyer within the 1st 30 days and the buyer closes within 30 days of viewing the property,they receive a 5% coop fee. 31-60 days a 4% coop fee. 61-90 days a 3% coop fee. after 91 days 2.5% coop fee. These 2 programs have helped me sell 90% of my properties within 60 days of rehab completion. Give neighbors and realtors an incentive to help sell your property.
I love the pick a neighbor idea... good stuff. For the coop fee, do you discuss this with the broker and they make the deal available to all their agents, or do you make this deal with a particular agent (does the agent have the right to accept it without broker's approval?)