We had a listing sell last week where the buyer was putting 5% down (excellent credit) and doing a loan with B of A. Guess what...B of A dumped thier 5% down financing. While FHA is a bit tougher on the appraisal side, they are still an option. On the surface this seems ludacris but we have to look at things from the banks perspective. With prices dropping 3-5% per month in many markets, does 5% down make sense as an equity position, probably not. The borrower could be upside-down 60 days after closing.
This is important information for sellers, they will likely end up doing more repairs than they would have with a conventional loan but better to spend a little money on repairs than loose a sale.
Troy Herhsey - www.CombsHersheyRealtors.com
360-816-6728
The death of the sellers assistance programs has reudced the number of entry level buyers by more than 25%. Early feedback shows that this loss of would be buyers has put further downward pressure on prices in the 250 and under market. I spoke to two title company managers this morning, open orders are falling fast.
What sellers must do....price aggressively and overpay on the commission.
First - With fewer buyers you must price your home aggressively to be the best buy of the current inventory. Pricing as little as 5-10K over the market will result in fewer showings and no offers.
Second - With so much inventory out there, you need to be creative and make sure that every agent in town wants to sell your home over other listings. How can you do this without dropping your price by 20K? Add 2-3% to the commission. Agents are hungry these days, many are selling fewr than one home every few months, by offering a big fat commission you become the cream of the crop, agents will do everything possible to sell your home. The choice is simple, reduce your price by 10% or pay 2-3% more in commission to create a pack mentality towards selling your home.
Ranked #1 in service during a recent poll of Clark County residents. Troy specializes in assisting sellers avoid Foreclosure by selling the home via a Short Sale. Call Troy today to find out why
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