Imagine this:<\/p>\n
• You need to sell your house but you can’t because you have let it run down over the years and it needs lots of Tender Loving Care.<\/p>\n
• You can’t fix it up because you don’t have the cash.<\/p>\n
• You are behind on the Mortgage Payments.<\/p>\n
If this sounds like the house you have right now then read on. The solution to selling these difficult houses is surprisingly simple, and incredibly effective. The easiest way to explain a House Selling Strategy (or a House Buying Strategy for that matter) is through an example.<\/p>\n
Here goes:<\/p>\n
The Handyman Special <\/strong><\/p>\n • The Situation – You are a seller with a house in a bad state of repair. It is currently worth $200 000. All the other houses in your area are worth $300 000.<\/p>\n • The neighbours are on your back to Renovate Your House because it is bringing down the value of their homes.<\/p>\n • You have had professional tradespeople in to give you quotes on the repairs. You cannot afford to pay the $30 000 for the repairs and you couldn’t possibly find the time to DIY. You’re too busy working to try and pay the mortgage payments for that!<\/p>\n Here is what you do – “Make Your House Easy to Buy, so it Will Be Easy To Sell”. With the Handyman Special strategy here are the steps to follow:<\/p>\n 1. Let’s assume that if your house was in good condition it would be worth $300 000.<\/p>\n 2. Also let’s assume (conservatively) that the bank would be happy to lend on an 80% Loan to Value ratio. This means they will lend a buyer $240 000 to buy a $300 000 home.<\/p>\n 3. Next thing to do is put your home up for sale at say $270 000. In your marketing, ask for people who are Good With Their Hands. Yes you will get a lot of interest because it is well below the area value of $300 000. However when a buyer comes to inspect you should expect them (if they have eyes in their head) to baulk at the price when they see the poor condition of your house.<\/p>\n 4. Now explain to the buyer that you were going to fix it up at a cost of $30 000 but if the buyer would be happy to do the work themselves instead you would be happy to knock off $30 000 and sell it to them for $240 000 instead. This means you will be accepting a $30 000 deposit in the form of “Sweat Equity”. The buyer needs NO CASH DEPOSIT. The buyer does $30 000 of work instead.<\/p>\n So – What’s in it for the seller? The seller no longer needs to pay $30 000 for repairs and renovations. The seller will get $40 000 more than expected ($240 000 instead of current value of $200 000). The property title will remain in the seller’s name until the renovations are completed to their satisfaction. The seller doesn’t have to spend precious time doing DIY Renovations.<\/p>\n So – What’s In It For The Buyer? The value of the house will be $300 000 when it is fixed up. The buyer only pays $240 000 to the seller. The buyer knows that DIY is much cheaper than the $30 000 quoted to the seller – say $4000 to $8000, using their own skills and network (relatives, friends, professional contacts).<\/p>\n The buyer will end up with a house worth $300 000 for which he paid only $240 000 (plus costs of fixing up). He\/she has $60 000 of “Equity” in the house before they even move in (this is 20% of the house value).<\/p>\n Conclusion: How does this all end?<\/p>\n • The Bank sees a house worth $300 000 and a buyer who has a contract-for-sale for $240 000. They are delighted to lend 80% of the valuation to the buyer ($240 000). Happy Bank!<\/p>\n • The Seller gets $40 000 more than he\/she ever believed possible and didn’t have to spend a penny or lift a hammer to get it. Happy Seller!<\/p>\n • The Buyer gets a beautiful home decorated and renovated to THEIR Tastes and the only money spent is about $8000. NO DEPOSIT needed. The bank gave them ALL the money they needed to buy the house at the seller’s price of $240 000. Wow – a beautiful $300 000 home for only $8000 cash. Happy Buyer!<\/p>\n So the “Handyman Special” Strategy for Selling a House has in this case resulted in Happy Seller, Happy Buyer, and Happy Banker. Now that is a WIN – WIN – WIN situation.<\/p>\n","protected":false},"excerpt":{"rendered":" Imagine this: • You need to sell your house but you can’t because you have let it run down over the years and it needs lots of Tender Loving Care. • You can’t fix it up because you don’t have the cash. • You are behind on the Mortgage Payments. If this sounds like the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[3289,3288,3287,2222,1261,2432],"_links":{"self":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/posts\/2603"}],"collection":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/comments?post=2603"}],"version-history":[{"count":0,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/posts\/2603\/revisions"}],"wp:attachment":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/media?parent=2603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/categories?post=2603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/tags?post=2603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}