Finance Roll

In this article you will learn some secrets that help you sell your home and safety issues you should know when showing your home.

Showing your home: The first trick to try is baking bread or some cinnamon rolls. If you are not much into baking, boil a cinnamon stick before a scheduled showing. *Note: the aroma of something freshly baked or pastry will remind people of grandma's house. You need to turn off all TVs, radios and stereos, you do not want any distractions that may effect their buying decision from buying to not buy. With any showing, turn on all the lights (day or night) before the buyers arrive and turn them off after they leave.

This next step is very important: be sure the kitchen table is free of clutter and is clean. *Note: this is where an offer could be written. Let the realtor do the talking and make yourself scarce. Allow the buyers all the time they need without feeling rushed. Buyers like to talk with each other without having someone over hearing them, or listening in. *This is how buying decisions are made. Please no matter how much you want to help, do not volunteer any information. Let the realtor do their job, they know their clients' wants and needs and the realtor knows how to keep them focused on buying their next home. Do not apologize for any mess that might have been missed, remember, this is your house, you live in it and they may not have noticed any mess until you mention it.

A Safety Tip: *Very Important* - DO NOT show your home to a stranger that does not have a realtor with them, especially if you are alone. You do not know their true intentions and you do not want to put you or any of your family at risk. If they do not have an agent, take their name and phone number and tell them you will have your agent call them to set up an appointment. Your safety should be the first thing that goes through you head and this is one of the best reasons to hire a realtor and not try to sell your home as a "For Sale By Owner".

Keep all of your valuables (money, jewelery, credit cards etc) out of sight to keep possible problems from happening.

When you receive an offer either your agent will present it to you or the other agent may want to, either way be sure your agent is there. Keep an open mind until you had a chance to really understand the pros and cons of the offer. Remember, you are now in the negotiating phase of selling your home. There are a lot of sellers who never get to this phase so don't make up your mind until you have a chance to talk it over and ask questions. Do not get insulted if the offer price is lower than you want, the buyers are trying to get the best deal possible and many believe you start with a low ball offer. Again do not get insulted or defensive because they want you to leave your favorite drapes or the microwave. Your agent will explain anything you do not understand and if there is something the agent is not sure of, he will talk with the other agent to get a clarification.

Do not be afraid of seller financing, if done correctly, you can safely make a lot of money and have an additional monthly income for a few years. The first thing to remember is normally if a buyer wants to do seller financing, there is a problem with their past credit. There could be a lot of things that happened in the past that banks do not like and will not deal with. To see if there could be a problem, have the buyers present proof of their past rental history and utility payments. It is best if they had been renting from someone who used property management of some kind, they will provide you with a detailed report of what their rent was, were they ever late etc...DO NOT accept hand written receipts as proof of their rental history (receipts can be made up at anytime), copies of cashier's checks will do as an alternative. If you are satisfied with their rent history, insist on at least 10% down. If the home sells for $200,000, then their down payment needs to be at least $20,000. If they do not have a sizable down payment, I would not agree to the deal.

I want to give you an example of how much money you can make by doing seller financing. Using the example earlier: House sold for $200,000, Down payment $20,000, and the terms 7% on a 30 year fixed rate with a five year balloon payment (a balloon payment is when the remaining balance is due). The monthly payment will be about: $1,200, now multiply the monthly payment times 60 months (five year balloon) which comes to $72,000. Now this is where it gets good, the balance due from the balloon payment is about $150,000, added $20000 (down payment) + 72,000 + 150,000 = $242,000. That's an extra $42,000 you just made for carrying a note for five years.

If you decide to do seller financing there are a few steps you should do to protect yourself and the buyer. Have all payments made through an escrow company, they are the third party needed to make sure payments have been made and all accounting is accurate. Any dispute, will be settle by them since they have all the information and it is always very concise and detailed. If you are going to sell your home and carry the note, do it as either a rent to own or lease option. This way, if a problem does arise you are able to do an eviction after 30 days. However, with a sales contract you have to go through a foreclosure proceedings and that could take 6 months to a year.

I hope this information will be of help to you. If you are interested in learning more, check out my home page at http://www.wrnottoli.com.