A new book, “Shift—How Top Real Estate Agents Tackle Tough Times,” is intended, obviously, for real estate agents. But it can provide helpful advice for home buyers or sellers, too. (And also for lenders.)
For example, it lists (and then explains) nine creative things sellers can do to sell their house: 1. Seller contributions 2. Seller-funded permanent buydown 3. Seller-funded temporary buydown 4. Owner financing 5. Contract for deed 6. Seller second 7. Lease option and lease purchase 8. Seller-assisted down payment 9. Wraparound and assumable mortgage.
It also lists eight creative things for would-be buyers: 1. Gift funding 2. Selling and refinancing existing assets 3. Non-occupant co-borrowers 4. Using a 401(k) 5. Temporary IRA transfer 6. Pledged asset mortgage 7. Equity transfer and bridge loan 8. Employer-assisted mortgage.
And there are eight creative things lenders can do to finance a transaction: 1. Lender-funded buydown 2. Fannie Mae’s “My Community Mortgage” 3. Running scenarios with automated underwriting systems 4. Adjusting amortization period to lower payment 5. Adjusting interest rates to cover closing costs 6. State, province, and local grant or bond programs 7. Mortgage credit certificate 8. Private lending.
Of course, the price of a house is of paramount importance. As noted in the book, “When a home first comes on the market, it attracts attention from those agents who are currently working with motivated buyers or those agents who are motivated by the price to go find one. If any agent or their buyer believes that a house is poorly priced, it loses its opportunity and doesn’t draw their attention. It gets written off. Once this happens, it isn’t easy to get those agents or buyers back, even with a series of price reductions or home improvements.”
For all the details, read the book.