Most home owners would agree that they would like to get the highest price possible for their home. So how are they going to get the highest possible price? Lease option or lease purchase is how. The price of the purchase
or the price at option time is the price that the seller hopes the house would bring at that time. Price would take into account appreciation. Do buyers go for
these overpriced houses? Yes, they certainly do.
Even if it is only a couple hundred dollars each month, it still allows for the monthly rent payment to build equity. This equity is applied toward the down payment at option time or purchase. If the buyer decides he does not want the house he looses the option money.
In either case if the buyer backs out he is not stuck with a house that he does not want. The seller then can do it all over again. The seller profits
from the cash flow, appreciation, and his tax deductions for mortgage and property tax.
In the proper situation this is transaction is a win for both parties.
Another way to market your home and get the most return is to be the bank. Providing financing allows the seller to broaden his market beyond the cash buyer to those who maybe do
not have money to put down, or have not completed their credit repair. This can
take place in the form of seller financing, a second mortgage, or a cash carry back coordinated with the lender. Seller financing usually sets a higher price on the house to account for selling the note at a discount
to one of the many companies that buy them. Interest is generally on the high
end, but overall terms are set up so that a targeted group that would not otherwise be able to own will have a home. Worst case is the seller takes a loss on his tax return. Check with your accountant to verify whether it would work for your situation.
The typical seller really needs cash at closing and no leftovers as they move on in life. Who are these cash buyers, where will they come from, and why would they want to buy here? When I first bought my house we were a young subdivision, we aged, had a lot of transients, and now a swing
back to young families. Subdivision behind this is middle aged professionals,
and on the other side and older group in an older area. However, regardless of
whether I am trying to market to an apartment complex or an office complex there are basically two things that sell. General advertising calls it greed and emotion.
As a Realtor the first is price. Everybody is always looking for a bargain. Secondly, most homes statistically are sold by Realtors. How do you get the most Realtor traffic through the house? You
bribe them. Donuts used to work on agents in the office, but you want them to
take their buyers. Money is the secret.
A bonus has worked for many, but all allowances come out of the bonus first so it may not amount to much. Higher commission will work. Now for marketing which is how
the seller gets the highest net on the sale. Knowing the neighborhood, and buyer
requirements for the most likely group will set the price as much as comparables will.
The seller and I will discuss net at closing with respect to costs of staging, comparables, demographics targeting,
and bribing Realtors. If the seller really needs a dollar out of the sale, I
will not arbitrarily make him take a quarter.
The great majority of people are shopping on the internet. Thus, marketing
really must have a strong internet presence. Every real estate office has a web
site that shows their listings. All listings are on the MLS. All MLS listings are forwarded to Realtor.com. Most real estate
offices have a newspaper add to some extent if you look on the right day in the right section, or neighborhood. Open houses have to be scheduled almost a week ahead to appear in all locations. Many Realtors have a web site. I have six and the listing
would appear on two of them. What is more important is the point 2 web site is
a network that shares listings among agents across about 300 more sites. Check
the Listings Tab at http://dwightpuntigan.point2agent.com/Listings/page_203584.html to see the format that your listing would appear on over 300
more web sites.