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Most people believe they need a real estate broker in order to sell their house. But with a little planning and research, you can sell your house yourself and pocket the commission! A casual glance at the real estate listings in your local paper will likely reveal dozens of For Sale By Owner (FSBO) and owner financing listings.
One would think that a hefty commission would inspire a real estate broker to work hard to sell your house. And in most cases it does. But we often hear of houses that have been sitting on the market for over a year with the realtor not showing much interest in showing it.
The most logical option that you have is to sell your house yourself by going the FSBO route. FSBO sales make up a huge segment of the real estate market. It can be done and it is done every day!
But how should you approach an FSBO real estate sale? Is simply placing a sign in your front yard enough or do you have to invest thousands of dollars in real estate advertising?
You'll need to place a sign on your lawn for sure. But a simple, inexpensive FSBO type real estate listing in your paper's classifieds section is all the advertising you'll need.
There is actually a very effective way to get the ads that you place and the sign in your yard to have your phone ringing off the hook with excited buyers, each willing to pay your asking price for your house.
The key to this method is owner financing. With the US economy like it is, many people's credit ratings have dropped making it extremely difficult for them to get a traditional mortgage loan.
Many of those who are suffering are good people who were laid off for a while or have had a sickness in the family. They're now back on their feet financially and ready to purchase a house, but they don't have a ton of cash for a huge down payment so the mortgage lenders turn them down.
This presents a very good opportunity for you. You're not just selling them a house, you're their problem solver. Instead of making mortgage payments to the bank, you can arrange it so that the buyers pay you the monthly mortgage payment! And the best part? You can demand top dollar when you sell your house!
Need some cash right now? Simply create a note giving you the legal right to these payments, then sell that note for a lump sum to a note broker. A good note broker can even show you how to structure your note to receive top dollar for it!
This method provides three advantages for you when you want to sell your home:
- By going the FSBO route, you keep thousands of dollars that would have gone to a real estate broker as a commission.
- You get your full asking price when you sell your house with owner financing.
- You receive the monthly mortgage check including the interest that a traditional lender would have received with a regular mortgage.
If you need assistance with the paperwork, you can always hire an attorney and/or a real estate broker on an hourly basis.
FSBO and owner financing are a powerful one-two punch for selling your home for top dollar with no commissions!
Caterina Christakos has worked with note brokers, mortgage brokers and
realtors.
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