There are many things a home seller can do to make the purchase more attractive to the buyer offering something they buyer can't get anywhere in the marketplace.
As the Consultant or Agent, making creative financing a part of the home selling strategy can distinguish your seller's home in the marketplace by providing BUYER BENEFITS others home sellers don't offer. In today's market, every edge you can provide is important. I advise a lot of real estate professionals on their creative financing options even on homes where I may not be the mortgage resource. I am not doing it for immediate income, I am doing it to assist real estate agents with whom I have a relationship and even with those I do not yet have a relationship.
Here is a list of BUYER BENEFITS I have seen work for home sellers.
1. A lower price to pay for repairs or improvements the buyers inspection have uncovered.
2. A lower price to pay for upgrades the buyer wants to do to the house.
3. You can't provide cash back, but you can provide money to the buyer for home owner's insurance, property taxes, or HOA dues.
4. The inclusion of personal property in the purchase like built in TV's, sound systems, custom made or custom fitted furniture and sometimes just some indoor or outdoor furniture that the buyer really likes and has commented about or even asked for or offered to purchase.
5. A new car in the garage. When a buyer can get a new car without having to do more than finance their home, they often like this option. Even if they are "paying for the car" it isn't with any additional out of pocket money and it isn't a 4 year auto loan or payment they must take on in addition to the house payment. I have seen this work with mini-vans, SUVs, luxury cars......you would be surprised how this can make the difference to a family regardless of their financial level. Your ad can read: A GREAT HOUSE WITH LUXURY TRANSPORTATION IN THE GARAGE or A BRAND NEW 2012 CAR IN THE GARAGE-----something that will stop people and make them read the ad and want to check out the house and value.
6. I have even seen sellers who create family vacations and cruises as a BONUS for buying their home. When these are planned in advance and purchased early they often look like a much bigger gift than they really cost the home seller. A cruise for a family of 4 for 2 weeks to Hawaii stopping at 5 Islands $5000 in boat fare so for $6500 it can cover all expenses. INCLUDES A CRUISE TO HAWAII INCLUDING 5 ISLANDS FOR A FAMILY OF 4 PLUS $150 A DAY SPENDING MONEY. I have seen this kind of GIFT or BONUS excite a number of families. It is often something they would never plan on their own and it seems like an exciting big free bonus when buying this house.
7. Paying for the buyers closing costs or a portion of the closing costs. Lenders usually have a limit on this amount, but it still reduces the cash out of pocket for the buyer which they can use for other moving in costs. This amount varies between 2-9% with FHA and HUD loans around 6% of the selling price but it depends on the mortgage the buyer gets, how the property will be occupied, how much the buyer borrows from the lender and the lender. This is a worthwhile incentive to most home buyers and it always feels like an added value to buyers when purchasing a home.
8. The seller can offer to buy down mortgage points lowering the interest rate .25% .50% and possibly even more. If the home buyer plans to stay in the home for a long term this can have big benefits to the home buyer. First it lowers the monthly mortgage payment. Secondly it can benefit the home buyer in far more dollars over time than it cost the home seller. Today this also is a great incentive for a buyer. Home sellers and real estate agents not versed in these options find it hard to compete with a team of agent and loan originator focused on making the sale.
