Posted by tony on January 20, 2005 at 10:48:39:
Yes, that might work thanks
Price Ranging - Holding a 2nd - Posted by Tony
Posted by Tony on January 20, 2005 at 09:29:33:
I am looking for information on how I use price ranging in order to sell a property.
I am selling an ocean front 3 bedroom home that was completely renovated in 2001. A comparable property is listed at 274,000. I am also selling an additional 2.5 acre lot worth about $50-60K with the property. Total acreage will be about 5 acres (2.5 each lot) both ocean lots. In Canada…
My question is how does price ranging work? If I am willing to offer zero or a small down and/or a 2nd up to $25K for example and I want to get minimum of $310K cash for my property?
Would this type of ad work in the paper?
Zero Down - Owner Will Finance - Fabulous Ocean front Home w/ additional ocean lot - $310-335K Make an offer - www.myhousewebpage.com
- if buyer has $10K down, then do I sell at $325 and finance $15K,
- if $15K down then $320 finance $10K etc.
Is that how price ranging works? What are typical interest/pmt terms on a 2nd? Usually a balloon after 12, 24 mos? Would offering interest only pmts work better with a balloon in 2 years?
Obviously my buyer might want to show the second as a downpayment. How is that managed with a lender? Do brokers generally work better than banks in these scenarios?
Would like some advice if possible.
Finally, other than a web page, any recommendations on a best marketing strategy to get exposure. Considering Privatelist, FSBO sites, eBay, newspaper, local buy and sell, etc… Are there any free FSBO sites with high traffic?
Tks All
ebay sucks at traffic …so do by owner websites… - Posted by Mike
Posted by Mike on January 21, 2005 at 07:50:06:
There’s not a single by owner website that I know of with respectable traffic. fsbo sites sound better than it really is… Here’s what might work in your area. Take a note as a downpayment. Your settlement company will allocate the note as funds on the hud 1.
After closing you can do as you desire with the note. keep it, assign it, sell it…or give it away but RECORD it. good read if you’re planning to go fsbo…
http://www.realtytalks.com/topic.asp?TOPIC_ID=557
Range Pricing - Posted by DP (ON)
Posted by DP (ON) on January 20, 2005 at 10:51:39:
Here’s Ric Edelman’s article on range pricing:
http://www.ricedelman.com/planning/home/rule17.asp
Re: Price Ranging - Holding a 2nd - Posted by Randy (SD)
Posted by Randy (SD) on January 20, 2005 at 10:09:20:
All of this is of course depending on how “qualified” you’re buyer is, but your proposed ad conflicts with your proposed owner financing. The first words in you’re ad are “zero down” then you follow up with asking if the buyer has $10 K. down and you carry A $15 K. 2nd, how is that “zero down”?
Another consideration is unless you’re buyer is extremely well qualified the CLTV (combined loan to value of the new first and your second) is 97%, because you’re buyer cannot show the second lien as a down payment. If you offered a $25,000 second, $zero down that’s still 93% CLTV = strong buyer required.
Regarding the rate and terms on the second, interest rates can be anything you choose (I wouldn’t do anything less than 8%) either no balloon payment or a seven year balloon, short-term balloon’s are foreclosures in embryos. I would include a due on sale clause and a contingency stating the second is not assumable.
The final consideration is do you have any intention of selling that second? Again with the high CLTV of 93%-97% that note is not very salable unless you’re willing to accept 65 cents on the dollar.
Re: Price Ranging - Holding a 2nd - Posted by tony
Posted by tony on January 20, 2005 at 10:34:01:
I guess I am typically looking for a person that has 5-15K but not enough to meet the dpmt or home insurance ratios. Selling the second is not my inention. The purpose is to try and attract more buyers, that otherwise might not have enough of a down.
My ad could be re-written as
owner finance, no closing costs, ocean front etc.
or
$10K Down, owner finance, no closing costs
Your thoughts!
Re: Price Ranging - Holding a 2nd - Posted by Randy (SD)
Posted by Randy (SD) on January 20, 2005 at 10:45:05:
OWNER WILL FINANCE
Small down, bruised credit OK, Fabulous Ocean front Home
3bd, 1.5 bath, 1 car gar, 1500 sq. ft., w/ additional ocean front lot - $335K www.myhousewebpage.com. Owner 555-1212