5 Creative Ways to Help Sellers In A Down Shift

Real Estate is a cyclical industry. One that impacts the economy on a national, state, county, and city level in a major way. If you consider the impact location, and convenience, has on families, small businesses, farmers, manufacturers, and the government alike, you can begin to understand how important real estate can be.

There is speculation of prices of real estate declining from 2022-2023. Interest rates have been steadily rising since the beginning of 2022, so the cost to borrow has increased. The decrease in real estate can be detrimental to families, small businesses, and corporations alike. Imagine purchasing a home for $100,000, being forced to relocate for work, and then being forced to sell your home for less than what is owed on the loan. However, there are several ways that owners of real estate can help themselves bullet proof their properties. 5 ways to help ensure that you can avoid losing money on the sale of your property, and potentially defy odds and make cash in down shift are:

1) Get your property pre-inspected: The use of a professional residential or commercial inspector is a great way to avoid unexpected findings while in escrow, give the seller piece of mind, and shows buyers that the owners want to make the properties condition as clear as possible.

2) Repair what you can afford to repair: Repairs can include a plethora of different activities. From structural repairs like adding a kneewall for support to painting cabinets for aesthetics- all of these repairs, some major some minor, cost money. When you go to sell your house it is nice to have some money set aside for these repairs. However, few people will have enough money to complete all repairs they desire. This is the time to consult your realtor for their opinion as to which repairs should take precedence. A house may be hard to sell with a major flaw and if you cannot afford to repair it you may find yourself in a pickle. In this situation its time to bootstrap, or DIY the problem. If even that will not work its time to speak with a lender to see what options you have.

*In any situation cleaning, washing, and painting your home serve as the biggest repairs to have done in terms of return on investment (ROI).

3) Price ahead of the market: Although it may be hard to set aside pride, to ensure your house sells quickly in a downshift it may be smart to ask slightly below comparable sales. Pricing too high may push buyers toward cheaper properties, and you may find yourself having no choice but to sell your house at the bottom of the market.

4) Creative financing: Another way to help make a sale happen is to utilize creative financing (given the seller is in a position to do so). There are several different ways to leverage capital, assets, and debt, to help buyers purchase your home. Things like seller seconds, rent to own, assumable mortgages, and many other tools could very well make the difference between a buyer affording your property, and not; all while likely increasing the net income from the same due to the benefit of buyers obtaining secondary financing through the seller. When handling negotiations with another party about offering secondary financing, it is always wise to consult with an attorney to have documents prepared, reviewed, and benefit from their industry knowledge.

5) Offer a warranty: The final solution for sellers caught in a downshifted market is to offer buyers a warranty of the home you are selling. No, your home does NOT have to be a brand-spanking-new, designer, home to offer this benefit to buyers. Instead home warranties often follow a similar cost structure as insurance:

• The warrantor (Person paying for warranty) makes monthly, quarterly, annually, or some other standard periodization of payments for the warranty

• If a major issue arises, sometimes, the warrantor may have to pay a fee to help cover some costs of remediation; similar to a deductible.