What can you do to sell your home in a declining market? Get rid of broker; provide flex mortgage and use Internet escrow
Jyothi Shukla
May 19, 2007

In a declining market, it is not easy to sell your home with a fair price. Here are some tips what you can do.

The buyers have limited resources as credit tightening has created the lack of liquidity that was fueling the real estate prices. You need to work with the buyers directly. Do not pay a broker to sell your house. In this market a broker is really worthless. If you have to list your home, make sure you can get out of listing any time.

First and foremost, use the Internet as much as possible and tap the relocation market. Deal with buyers directly. Take a home equity loan and provide the cash to the buyer to pay for their closing costs and down payment. You could even work with your bank to provide the buyer a flex mortgage.

Use Internet escrow services to deal with the buyers. Work with buyers to get your home inspected. Remember, there are plenty of buyers who want your home but they just cannot afford the same. You must work towards making it affordable for them.

Let us assume that you want to sell your home for $400,000. If you pay 5% to a broker, your real selling price is $380,000 less other closing costs. If possible you should take a home equity loan or other loan (if liquid cash is not available) and offer that $20,000 to the buyer to help they buy your house. The $20,000 can be used as a cash incentive for the buyer so that they do not have come forward with closing costs. Put that up on your signs.

You can also work with your bank to make sure the buyer can get a decent mortgage. The $20,000 you saved by getting rid of the broker can be used to pay for the down payment, points, and other closing costs for the buyer.

Communicating directly with the buyer with these kinds of incentives is proving far more effective than using a broker in the current market place.

What can you do to sell your home in a declining market? Get rid of broker; provide flex mortgage and use Internet escrow
Jyothi Shukla
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