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KELLEY’S MARKET TRENDS 41 FLOOR SPACE 41 Real Estate
EAll Types of Buyers
with one hand and reserving a stful of cash in the other.
Work with them, but prioritize your bottom line. This is still a business trans- action, so keep your priorities straight and don’t get snowed under by a blizzard of emotions at your own expense.
Type No. 4: The Window Shopper
These buyers dream of owning a home some day. They gallivant around town, swooning at every open house, but strug- gle when it comes to sealing the deal. They might even pose as “hard” negoti- ators with lowball o ers, But the reality is they just aren’t all that serious about buying a home. If you sense this is what’s going on, try to get your realtor to deter- mine if they’re looking at multiple prop- erties and just how soon they’re looking to move in. The more properties they’re looking at and the more wishy-washy the answer, the more likely you should cut your losses rather than waste your time.
Type No. 5: The Coyote
If your property has been aging on the market, you might start seeing this type of buyer sni ng around.
They want to see if there’s a literal crack in the foundation, something that’s kept it on the market for too long. But don’t get intimidated – just be honest. Be extra careful to disclose everything. Work with your realtor to see what con- cessions need to be made, and if the price you’re asking is right – chances are if it hasn’t sold for a while, you might need to come down a bit.
VER HEARD THE EXPRESSION that you need to kiss a lot of frogs to nd a prince? Of course you
have! Well, the same is true for selling a home. Although it usually takes lon- ger to meet potential buyers face to face these days – if you do at all – your deal- ings and various interactions may ulti- mately make you feel a certain intimacy with these would-be owners, maybe even more than you’d like.
It pays, literally, to know what kind of person lurks behind the o er. So allow us to introduce you to the kinds of buy- ers you’ll encounter and how best to deal with them for optimum results!
Type No. 1: The All-Cash O er
All-cash buyers may seem cocky— understandably. With no worries of nancing falling through, this buyer means business and can even ask for a shorter escrow period to seal the deal. The downside? You may have to be ready to be exible. Translation: An all-cash buyer will probably aim for a lower o er, or may have speci c contingencies in mind, e.g., you’ve got to x that roof now, or else they walk.
But here’s the thing to remember: The promise of cold, hard cash is more of a bragging point than a nancial bene t to you. So be prepared to drop them if their demands get too outrageous.
The seller receives their net proceeds as cash regardless of how the buyer pays. So a well-quali ed buyer getting a loan is as good as cash.
Type No. 2: The Scrappy Underdog
These buyers are the opposite of the
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all-cash buyer: They have little available cash for a down payment. Buyers with FHA loans can fall into this category, which can sometimes be rough on sellers since FHA loans have stricter home qual- ifying requirements. Additionally, the more work a buyer needs to nance the property, the more work a seller might need to do as well—like contributing to closing costs.
The good news? These buyers usually know they’re a headache and, as a result, should be more exible to your needs, as long as they don’t require cash—say, a later move-in date or fewer repairs. And if their bank won’t cover enough, one option is a carry-back loan. This is where
the seller takes out a second mortgage and acts as a bank for the seller in order to cover the nancing gap.
Additionally, you can make money on the interest rate. Just be sure to consult a nancial adviser and lawyer rst.
Type No. 3: The Doe-Eyed Charity Case
These buyers are “so in love with your home, they submit an o er accompanied by a sweet emotional letter with photos of their children or pets. They’re probably the most rewarding buyer out there. Only beware: Warm and fuzzy feelings don’t pay the bills, so if their plea is not accom- panied by an equally heartfelt o er, they could just be playing your heartstrings
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JANUARY 27, 2016 // FLATHEADBEACON.COM