The past two blog posts have been dedicated to thinking outside of the box and using creative real estate solutions for home sellers who are having a tough go at selling their homes in the Tallahassee real estate market. Yesterday, we posted two riddles and asked readers to respond with the correct solution, and "Bill" was the first to respond with both correct answers.
The correct answers for our creative real estate riddles were:
So, thanks Bill and everybody who commented and emailed their answers to us.
- He was a lighthouse keeper.
- The other three were women.
Creative Solutions For Homebuyers
While the past two blogs focused on techniques that home sellers could use to get their homes sold today, they all have one thing in common. They are ways to increase the number of prospective buyers for their homes. The reality of the market is that there exists far more home sellers than homebuyers, thus anytime we can give a home seller a competitive advantage by making their home "more available," it can lead to a sale.
The methods we use to increase the number of buyers usually work on "fixing" the problem of marginal credit for homebuyers who want to buy a home but are not currently in a position to get a bank loan (or a large enough bank loan).
The simplest example of a creative real estate solution is when a home seller "holds paper" as part of the transaction. Perhaps the buyer has some cash and can get a loan from a bank for only 80% of the value of the property, then the seller holds a second mortgage for an amount equal to 20% of the purchase price.
Another technique is to have a buyer and seller agree to a sales price, but with a closing date far enough into the future for the buyer to qualify for conventional financing. During the interim, the buyer can lease the property from the seller in a creative real estate solution that is called a lease purchase agreement.
There are so many creative solutions available for homebuyers and sellers that all it takes is some preparation and time with a real estate expert in your market area. It never hurts to sit down with somebody that you trust and that you know has plenty of real estate experience, so don't wait for the buyers' market to go away!
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.