LOW HANGING FRUIT FOR HOME SELLERS

In my last blog, I spoke about some common, ordinary places and strategies in finding homes to purchase whether you be an investor or a home buyer. I call this "low hanging fruit". Everyone knows it is easier to reach the orange or pear on the tree while your feet are flat on the ground than the orange or pear at the top of the tree.

Here are a few ways easy, simple things you can do to find persons that are interested and eager to buy a home:

SOCIAL MEDIA- A lot of people on sites like Facebook will post information about upcoming moves to new communities, new additions to their family, and marriages. People who are in transition are an excellent source for home purchases particularly if you have a property that is the size or in the location they need to be.

NEWSPAPER- I am not speaking here about posting a classified ad in the newspaper though that might be an option. I am speaking about reading the news with awareness of transitions that are happening in your community or in people's lives. For example, when you read in the business section that a person is going to become the new manager of the local business after being in a faraway city, you are reading about a potential home buyer. When you read that a couple in the community just had twins at the local hospital, you are reading about a potential home buyer who might need a large home. Again, read the news with awareness of potential home buyers.

ROADSIDE SIGNS- Roadside signs at major intersection are a cheap, inexpensive way to tell the world about your property for sale. The signs cost less than $5 a piece. Some people find it more appealing when they are handwritten. Be alert to any local ordinances against such signs in your community.

BULLETIN BOARDS- Make a flyer about your home for sale and post it on free community boards in places like laundrymats, grocery stores, and restaurants.

REALTORS- If you own a home, don't discount realtors as a resource to sell your own. They can help you get some idea about recent sales for comparable homes in your neighborhood. If you have your home priced low enough, the realtor might be willing to list the home and tack on their commisson fees above the purchase price. A realtor can certainly save you a lot of legwork.

F.R.A.N.- F.R.A.N. stands for friends, relatives, acquaintances, and neighbors. Spread the word about your home for sale through your networks. Your F.R.A.N. might know someone looking to buy through their work, friendships, or the like. You might want to even consider offering them cash or a gift card for their help.

These are a few ideas about where to find low hanging fruit as a home seller. The places to find prospective home buyers are limited only by our creativity. Good luck.- Randy Wall

LOW HANGING FRUIT FOR HOME BUYERS

Have you ever heard anyone talk about low hanging fruit? That is a phrase that refers to something that is easier to retrieve or get. As most of us know, it is certainly easier to get the pretty apple or peach that you can pick on the lower limbs of the tree than the fruit on the upper branches. Today, I want to speak about low hanging fruit for buyers and sellers of real estate. Obviously, it is not as easy to buy or sell a house than to pick an apple. However, these are some ways in my experience that are easier than some others.

LOW HANGING FRUIT FOR HOME BUYERS

If you are looking for motivated sellers of properties, here are some places where you can find them:

HOMES FOR RENT- Property owners who rent homes or apartments may have something for sale. They may be like a property owner I spoke to last week who is tired of the hassles of renting.

ESTATE SALES- When someone dies in a family, there is often a home that needs to be sold. You can find estate sales in classified ads in your local newspapers or on the internet. Though they may only be selling the contents at first, you can contact them about whether they will be selling a home. One caution: approach these persons with care and sensitivity as they are in the throes of the loss of someone they love.

CODE INSPECTORS- Your county or city code inspectors can also be a source of motivated sellers. They may know of properties with code violations where they have been unable to get the property owner to correct the problem. Check with these public officials. A reminder that the information they have is public information.

REAL ESTATE INVESTMENT CLUBS- REIA's are a place where you will sometimes find motivated sellers. It might not have anything to do with the property, but simply that the real estate investor needs to liquidate their assets for some reasons. Check the internet for the real estate investment club near you.

COMMUNITY HELPERS- Community helpers like mail carriers, pubic utility personnel, firefighters, etc. can also be a source of motivated sellers. For example, a homeowner might nto want to repair a home after a fire. A mail carrier might know that a person is getting ready to have to move into a nursing home.

REALTORS- Realtors can be a great source for finding motivated sellers. By checking out their MLS, they can easily find out which homes have recently been reduced in price, been on the market for 90 days or more, or are foreclosures.

Good luck in your search. These are a few ways for finding a property that might turn out to be the apple of your eye.- Randy Wall, Lora Lee Properties

THE S.O.L.D. METHOD FOR HOME SELLERS

Today I want to share with you the S.O.L.D. method of selling a house. Of course, sold is what every home seller wants to happen when the list their house for sale. In this case, sold stands for some important tasks to do and actions to take. They are as follows:

S- ELECT If you are planning to sell your home, select a real estate professional. I understand some homeowner’s hesitation in using a real estate professional these days. Perhaps they believe they can sell the house themselves and safe the commission. While a homeowner may sell the house themselves, a real estate professional can be a great asset to making that goal a reality. They understand the market, and have the contacts and skills to really make your house sell.

O-RDER Order a home inspection. Many prospective homeowners order a home inspection before they purchase a home. Perhaps you should order a home inspection even before you market the house for sale. A home inspection can help you see things that need repaired or upgraded that you have not noticed. Some things that a home inspector might discover can even be a deal-breaker; some things a home inspector might discover can be resolved or repaired quickly. Give a copy of the home inspector to the real estate professional to show to all those looking at your home. They will not only be impressed, but they can make an offer on your house with piece of mind. Be prepared to pay $300 to $400 for a home inspection.

L- ISTEN Listen to your real estate professional and to the comments they share with you after showings. Unfortunately, some persons looking at a home cannot see beyond a kitchen that needs upgrading, a room that needs painting, or flooring that needs replacing. Listen to your real estate professional on these items. Also listen to what comments the real estate professional shares from folks who have toured your house. If the realtor does not share them with you, ask what things you can easily and affordably do to make the house appealing for showing.

D-ICKER Be prepared to dicker with prospective buyers. Remember this is a buyers market and there are lots of homes for sale. Be willing to consider lowering your price, countering an offering,or even paying for closing costs if you really want to sell the home. Do not be offended. I suspect that most of you reading this do not want to pay full price when you purchase a car. Well, most people will not want to pay full price for the sale of a home.

S-ELECT…. O-RDER… L-ISTEN….D-ICKER. If you do these things, I believe that you will get it sold. Good luck, and have a fantastic week.- Randy Wall, Lora Lee Properties

FINANCING YOUR REAL ESTATE PURCHASE

Today, I want to write about the issue of financing your real estate purchases. Whether you are looking for real estate for your own residence or as an investor, many people often see money as a big barrier keeping them from buying a property. While real estate is more affordable today that it was 5 to 7 years ago during the real estate boom, the down side is that real estate loans are more difficult to get when many lenders were doing no document, interest only home loans. I have listed below a few things to consider in purchasing real estate today:

CREDIT SCORE- If you are purchasing real estate and are looking to finance the purchase, a lender is going to want to be sure you can repay the loan. There are a number of things that assist private and public lenders making that assessment. First, they need to see that you have income to pay back a loan from a job, investments, or retirement. Secondly, lenders are going to look at your credit score through agencies such as Trans Union or Experian. The credit score gives the lender an idea on how you have done in making payments on credit purchases in the past. If your credit is not good, it is important that you begin now to improve your credit. While there are some companies that say that can easily repair your credit for a fee, I am skeptical of those claims. The best things you can do to repair your credit is to pay down your credit cards, pay your debts on time, and check your credit report to be sure it is accurate.

USDA AND FHA LOAN PROGRAMS- A few years ago, there many loans that you could get with no money down. You will have a hard time finding such a program today. One program that is available with no money down for qualified parties is the USDA loan program. This program is not available on all properties but only those in rural areas. If you want to know if a property is eligble for the program, go to the USDA rural development loan program web site and type in the address for the property to see if it is eligible. FHA also has some programs with a down payment for 3 percent. Like the USDA programs, you and the property must qualify.

HUD PROGRAMS- HUD of the U.S.A. also has some good programs for eligible parties. In certain areas, there is housing available for teachers, fire fighters, police officers, etc. at a significant savings. Check out the HUD web site for more information.

SELLER/OWNER FINANCING- There are some homeowners that are willing to sell a home with seller or owner financing. Some sellers will even require a low downpayment or no downpayment. You can find some of these on websites such as Craiglist. If you are working with a realtor, get the realtor to search for properties with owner financing. One form of seller financing is a lease with an option to purchase. In this scenario, the homeowner gives the renter/buyer the chance to buy the property for a certain period of time while they lease the property. Some sellers will give credit the renter/buyers with a portion of the monthly lease toward the purchase. If you are currently renting or leasing a property, check with your landlord to see if this is a possibility. The worse they can say is “No”.

There are many other possibilities and ideas to consider. These are only a few. Talk to a real estate professional, a seasoned real estate investor, or a seasoned mortgage professional for other ideas. Good luck.- Randy Wall, Lora Lee Properties