This week, with the assistance of the Team Move/OVM Financial blog, we’re concluding our 3-part series on creative methods you can take to help get your preferred home buyer to closing day. Usually when a potential buyer is trying to purchase a home, their greatest barriers are 1) amount of cash on hand, 2) overall credit rating, and 3) ability to qualify for a loan or manage monthly payments for the property in question.
As a seller, if you understand where the greatest area(s) of concern are for your preferred buyer, there are a number of ways you can help to achieve a good result for all parties. Particularly if you have some financial flexibility, a tactical expenditure in the short-term, can pay off in the long-term, by getting the right buyer in the home, within a desired time frame and at a good price. In part 1 and part 2 of our series, we shared several effective ways to accomplish the home selling objective.
Here are a few more examples —
Pay the buyer’s mortgage insurance. In some circumstances, especially when government loan programs are involved, sellers can pay a portion of the mortgage insurance funding fee. The key benefit here is that doing so reduces the overall amount of funds being financed by the buyer. As a result, their monthly payments are lower and they can qualify for more house.
Cover incidental costs that buyers are likely to encounter. Some good examples include 1) a moving truck, 2) a professional move-in house cleaning, and 3) general touch-up goods. In the case of the latter, including a gift card to a home improvement store can help the buyer purchase items like paint and landscaping materials that will allow them to put their own personal stamp on their new home, for little or no additional cash outlay.
For manufactured homes, provide the foundation certificate in advance. Manufactured homes require a foundation certification to be conducted, usually by a structural engineer. As the seller, if you pre-emptively cover this cost, you give the buyer some peace of mind. Its one less item they’ll need to pay for before closing.
As a final reminder, some of the strategies we’ve shared may have limitations, or may not be permitted in certain loan programs or circumstances. It’s always advisable to discuss your options with an experienced real estate agent. The mortgage professionals at Sanford’s Team Move office are always happy to share their insights as well. You can call the Team Move experts at 919-777-0114.