How To Sell That Extremely Hard House To Sell

by : Tom Beaty

Occasionally a "for sale by owner" seller can have difficulty selling his home. If you have a difficult house to sell, don't be alarmed, for there are many options that can make the process of selling your home easier. They say that "even ugly homes have buyers". Not to imply that your house is ugly, however, if you are experiencing difficulty selling your home, there may be many reasons your home is a hard house to sell. Some factors could include your location and neighborhood.

One option most sellers are hesitant to take is to decrease the asking price of their home. Don't forget, you'll never sell your home if analogous homes in the area are a lower price. In order to sell your house for the same price as your neighbors down the street, the condition of your home must be analogous.

A more reasonable option might be "assumable mortgage". If you take this route, you would grant the buyer the ability to assume your current mortgage without ever having to qualify with another mortgage company. It would be reasonable for you to sell your house for a higher price than a analogous house without an "assumable mortgage". This will definitely be a benefit to you if the interest rate on your mortgage is less than the current rate. Only your mortgage company will know if this option is available to you.

Another reasonable choice is "Owner Financing". Some sellers find a good buyer who, at the moment, cannot obtain a large enough mortgage to buy your home. In the event that the buyer should have funds stuck in an IRA, or children in their final year of college, it's likely that they will be willing to pay a higher price. With the help from a seller's mortgage, they might find purchasing your "for sale by owner" home much easier. You can make this one of two options, a regular mortgage or a balloon mortgage.

Should you choose a balloon mortgage, the buyer will make payments monthly, but the balance of the mortgage must be paid by the end of a given time period. This time period can last from as short as six months to up to three years. In this case, you are allowing the buyer additional time to obtain a bank mortgage of his own to repay you. This type of transaction uses a form called the Balloon Note.

In most instances, a regular mortgage is a second mortgage which covers the portion of selling price that the buyer is receiving financing for. Should you choose this type of mortgage, the buyer will continue paying the monthly payments until the mortgage is paid off. A Mortgage Bond is required for this type of transaction. The Discharge of Mortgage form is used to certify that the regular mortgage or the balloon mortgage has been paid.

The "lease with the option to purchase" is yet another method of owner financing. This is beneficial for the buyer who cannot qualify for a mortgage loan. After renting the property for six months to two years, the buyer has the option to purchase the home. Should the buyer choose to make use of this option, he will pay a lump sum of three to five percent of the selling price to you. The buyer pays an additional monthly sum of fifty to three hundred dollars with this down payment included with the monthly rental payment. This non-refundable money goes toward the purchase price of the home. In order for this transaction to take place, one must obtain a "lease with option to purchase" agreement form.

One can acquire all of the above mentioned forms at any of the major office supply stores.

Other options for selling a hard house to sell will require using a real estate agent or a multiple listing service.