Sell Your House: Deal Fairly

A deal isn't a good deal unless it's fair to both sides of the table. This is something to keep in mind especially if you are considering carrying some or all of the mortgage.

So let's look at the first statement and why is this even remotely important? You've heard the saying "good vibes", you have felt this yourself. Perhaps you call it something else. The fact is people pick up on things. We all know this to be true to some extent.

If you are trying to cover something up prospective buyers will get a 'wierd feeling' when you talk. Like something isn't right. If something is amiss they will smell it to one degree or another.

Honesty is the best policy. So if there is something detrimental, past roof leak, garage over property line, it is best to disclose it right away. Then you can explain repairs or improvements and how you solved the problem.

By sharing this experience with a prospect they get to know you. More importantly you establish credibility and can then direct the conversation to your advantage. They will pick up that yopu are being honest with them and they will like that. We do business with people that we like.

As for the second part of my opening statement. 'This is something to keep in mind especially if you are considering carrying some or all of the mortgage.' Owner financing is a very effective tactic in a tight marketplace. Either by carrying part to assist with financing or carrying the entire mortgage.

Either way you will need the assistance of a real estate attorney or a good title company if you have no experience. This is fairly styright forward, you end up with a mortgage payments from the buyer at one to two points above prime.

The advantage of this is you will usually get full boat price that you asked for your house. It's price or terms not both. You want to be fair to the buyer and yourself. There are some things to consider.

First the buyer. After looking at his financials and credit report and understanding why he can't just go to the bank. Do you feel that he will pay? What does your gut tell you. Are you picking up anything? Take a couple of days to contemplate this.

Have you covered your bases legally? If unsure this is where a paid attorney comes in not just cornering a friend for free advice. I mean what happens if you have to foreclose or collect this mortgage by legal means.

These questions when answered will do two things. One, you will have a clear understanding if you want to offer any type of owner financing. Two, this will lead to covering your bases. Protect yourself, be fair with the buyer and you have a distinct advantage in the marketplace.

Do your homework

Till next time