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Our current mortgage and real estate debacle has resulted in a huge boom in the private lending business (Mortgage Notes created by owner financing). Desperate home sellers are increasingly having to act as the lender by necessity as lending institutions have gone in the opposite direction in lending practices. In the haydays of mortgage lending, lenders would give you a mortgage, in many cases for 100% of the home’s value if you simply had a pulse. Now, except for government backed loans (FHA, VA, USDA), you need twenty percent down, almost perfect credit and 100% proveable monthly income via federal tax documents. Sadly, these extremely rigid loan practices have left many high quality, low risk homebuyers out of the market. This is particularly true for millions of self-employed home buying prospects who in many cases have plenty of cash for a down payment along with good credit scores. These homebuyers just may not be showing sufficient taxable income so as to keep their taxes to a minimum. Their aggressive tax strategy means they can’t get a a mortgage loan. As a result, the home seller needs to step up to the plate to save their day.

I understand that many homeowners will not have this option, but it could be a great alternative for a lot of homeowners. {It is a great option for homeowners who have some equity in the property as opposed to those where the mortgage is equal to or greater than the value of the home.|It will work best for homeowners that have a lot of equity in their home where as it won’t work for people with little to no equity.} Interestingly, a lot of home sellers are not even aware that it’s possible to sell this owner financed note, which is a highly valued marketable asset. They can even sell their note to a mortgage buyer (also known as a note buyer) in just 3 or 4 months after the home closes when the note accrues some “seasoning’. Many note buyers will be willing to turn the note into a lump sum of cash. This essentially gives the seller an all cash deal and while the homeowner takes a discount on the private mortgage to sell it (a dollar today is of more value than a dollar tomorrow), the result is it moves the home fast, almost always results in the seller getting a top price and the property can often be sold with no real estate commissions. The net result is a win/win.

So while the Fed is showering trillions of our money at the big banks, these banks still are not lending. Most of these banks are just stock piling this ultra cheap or even free money or using it for acquiring other companies. As a result the home seller is having to take charge of their own destiny, just as entrepreneurial Americans have always done.

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What will homebuyers see when they look over your house? Is it clean and uncluttered? Is it well maintained?

What kind of impression is your home exibiting when potential homebuyers see it?

And why does it really matter?

Why can’t buyers see the potential?

The answers to all of these questions may very well mean the difference between your house selling quickly, or not selling at all!

That cut point is a big deal.

The steps you take before you put the house up for sale will matter quite a bit more than you can imagine. Consider your product, the house you are going to sell as a series of photos. That’s how prospective buyers will see your product. Buyers will see a group of pictures that they either care for or don’t care for. Be sure all the pictures are appealing photos. Any doorway a homebuyer enters into is an opportunity for you to stage a beautiful image to be remembered.

1. The very first image a prospect will see will be the exterior of your home. It may be the most important image or photo of your product the buyers will see. If you have trouble visualizing what homebuyers will think of your home, take a photo yourself and fix anything that doesn’t look appealing. Paint and landscaping are very inexpensive fixes and can make a huge impression on potential buyers. Also remember the colors of things like the driveway, the walkway, the exterior siding, the landscaping and the roof all need to work together.

2. Then a homebuyer who likes the outside of your house will be eager to come through the front door. What is the next image they will see? Is it the tangle of electronic equipment and wires that make up your home entertainment system? Is it stacks of shoes and clothing? Or is it a beautiful entryway that would make anyone proud? Make it look great. For homes with a formal entry way a nice rug and a nice table set with some fresh cut flowers may just be all you need. If you open the door directly into your living area, make the wall on the other side of the door as appealing as you can. Put your stereo and television equipment in an inconspicuous location or remove it entirely.

3. The next big area may be the kitchen. Kitchens naturally have a lot of stuff. Clean and clear away all the stuff. Take the [flour and spice] canisters and appliances that sit on the counter tops and store them somewhere else. You want prospects to see a kitchen that shows as pretty and as new as you possibly can make it appear.

4. The next photo that is really important to buyers is the master suite. What will be the first thing a buyer sees when they look through the door? It should be a luxurious bed with a headboard, 2 side tables with lamps and maybe a pretty picture over the headboard. This room is supposed to be an escape from the cares of the world. This look is better for resale and for your checking account.

5. All of the bedrooms in your home should be setup with a bed, some bedside tables and lamps opposite the door. Most homebuyers are looking for at least three bedrooms. If you have more than three you can set one up as a home office. But remember, you cannot leave an office with a mess of personal stuff when your house is for sale. Besides being a security risk for your personal business, it won’t be a very appealing picture. A properly staged home office has a work desk with a lamp and a desk chair. That’s it. The desk should face the doorway with the chair behind it also facing the doorway.

6. The next most important rooms will be the bathrooms. They need to be tidy and appear near new. Nasty stains will send buyers running for the front door, not buying it. Small repairs and fixes will serve you well. Don’t fill the bathrooms with cleaning items and various appliances. Pretty liquid soap dispensers and fresh linnens are OK, and nothing else. Clean, clean, clean!

7. Dens and rec areas are the next most important pictures. If your den is a mess it will turn off homebuyers. These rooms often end up being collecting area for all the junk you bring into the house. School stuff, sports equipment, briefcases, purses, work papers, AV equipment and wiring. Clean up and make it look like a comfy family space.

Those initial impression photo ops are crucial for your goal of selling your home. Make sure every doorway takes buyers to a beautiful image. You will notice that a lot of our suggestions are about cleaning, polishing and getting rid of stuff. When you are trying to sell a house less is more. When homebuyers buy a home they are trying to achieve a dream. Don’t present them with a nightmare. Let them see their dream images.

One final thought. Addressing all of the above will greatly improve your odds of a fast home sale as well as a good sales price. However, there are two little words that all by themselves will get you a flood of prospective homebuyers. These two words are, owner financing. Now before you hit the exit button, hear me out. Offering owner financing doesn’t mean you will have to wait 20 or 30 years to get your money. You can simply sell the private mortgage created from the home sale to a mortgage buyer or as many call them a note buyer. There will be a discount on the sale and you may have to hold the mortgage for 2 or 3 months for it to “season” but you will most likely 1) Get you top dollar for your property, 2) Not even need a real estate agent and their sales commission, 3) Sell your home much more quickly saving interest, 4) Receive monthly payments during the seasoning time and 4) Receive a down payment (you should get at least 10% down.) at closing. So if you don’t have a big mortgage on your property, this is a great way to finally be rid of the property and end your frustrations. Oh, and can you imagine combining the above preparation steps with owner financing. The end result might just blow you away.

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People tell me this all the time. It’s impossible to sell my home myself right now. But your average real estate agent may not be successful in selling your house either. If you are thinking you don’t need to do anything but list your house with a real estate company, you may find yourself disappointed. The tougher the market, the more you need to cover all your bases to sell your home quickly. And guess what, you still have to do these things whether you sell your home through a Realtor or sell the house yourself.

Recent home sales are much slower than they have been since the 80s when rates were at credit card rates, despite today’s very low interest rates, however there are several things you can do to help your home sell and sell quickly, too.

1. First, create some really good curb appeal before you put the house up for sale. Without good curb appeal, most prospective buyers won’t bother to come inside

2. Price your home right. The key here is a realistic view of comparable homes for sale. An overpriced home is the most common element that causes a very slow sale whether you are selling your property yourself or through an real estate agent.

3. Put a fresh coat of paint on the outside and inside if it’s been some time since you’ve painted. Neutral, fresh paint looks good to prospective home buyers. Avoid exotic or very bold paint treatments as well as wallpaper. Buyers don’t like them. DIY if you can do a good job. The big home centers can assist you with these important tasks.

4. Clear out all that excess clutter and junk, enough to leave your closets, the garage and even rooms a little empty. Your closets should have nothing on the floor.

5. Clean up and stage your house like a model home. Have it ready for a buyer with virtually no notice. The previous item will make this process much easier.

6. Let everyone know your house is for sale. You never know, your neighbors may want to choose their new neighbor and help themselves as well as help you. This worked great for us in the slow upper Midwest real estate market. Our home was sold and closed in 4 weeks surprising the selling agent we hired who had nothing to do with finding our home buyer. To show just how slow the real estate was, the home across the street from ours had been for sale for more than a year and had still not sold when we left.

7. Put an advertisement for your house in the local newspapers. It worked for us again in a slow real estate market. We didn’t bother with a real estate agent this time. We got an offer from the first prospect and had a closing within 6 weeks.

8. If your area’s real estate market is really slow, try offering owner financing if possible. Those two little words can do more than just about anything else to get a ton of prospects. Many home buyers in the current real estate market, even ones with good credit have difficulty getting a loan. This is really true with self-employed buyers who many times have plenty of money for a nice down payment. Address their problem if you can. You can still effectively get all cash for your home by selling the owner-financed mortgage note to a mortgage buyer. One point to be aware of. You may have to hold the note for 2 to 3 months for it to “season” a many private mortgage note want this seasoning before you sell a note or sell private mortgage to them.

We are in do it yourself times and selling a home is no different. If the normal sales just aren’t happening you can take charge and make things happen for you through FSBO! Take that last point seriously. Your work can have a much greater impact on selling your house than any real estate company or agent.