I need some suggestions on selling High End House.


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  • Hello everyone.
    I have a house to sell on Lease Purchase basics in Chesapeake, VA.
    Sales price $499,900
    Monthly $2,750 on 24 months lease.

    I advertise on Craigslist and Zillow, but not many enquiries with at least 3% down.
    House is Vacant and previous Realtor’s pictures taken when it was occupied are very poor quality.
    Please help me.
    What should I do to move this house?

    Thank you, everyone, in advance.

    HI Lilia.

    Do you own this house or control it with a contract? Or are you a listing agent?

    In the highest price ranges, it is rare to find anyone who will do a lease purchase. For higher end houses, they want the DEED in their name if they put down a substantial down payment.

    If there is enough equity, you could do a Highest Bidder Sale for someone to cash it out or you could advertise it as being sold with seller financing to the person with the most down payment. Iif you offered it for sale with seller financing you would open the flood gates of buyers with 10% or more down.

    Lease purchases works great on lower end houses but not higher end houses.

    Thank you very much for your responce, Jackie.

    My company is a principal in transaction and we control the property offering the seller a lease-purchase exit.
    While we market the property, many do not have money to put down, so as you said, that is not so easy to find the buyer.
    They want $454,000 with loan balance of $386,000. Market value of the property $455,000
    Their monthly payments are $2,400 a mo plus HOA $49 a mo.
    Mortgage payment includes taxes and insurance.

    Would you think we can do ovner finance on this deal? If that is possible, would you suggest how it can be done?

    Thank you for your help, Jackie.

    A lease purchase is good for some transactions but not all!

    No one in their right mind would put down $50,000 – $60,000 (or more) without getting the warranty deed in their name.

    There is absolutely NO PROFIT in this deal if the sellers want $454k and the market is $455k. How do you plan to make any money?

    You need to renegotiate with the sellers to buy the house subject to the mortgage — subject to you finding a buyer when you do a highest bidder sale for the highest down payment. Then market the property at $460,000 and it will be sold to the person with the most down payment. Start the bidding at $12,000 down.

    You should be able to get $46,000 down minimum.

    In the agreement with the seller, state that you will get paid $_______ and the sellers get the rest of the down payment and any cash flow.

    You should get at least $10,000 for your efforts. You will need to do 7 days of aggressive marketing, put out at least 50 signs, be at the open house 2 days, and negotiate with the bidders.

    If the sellers won’t go for this – WALK AWAY FROM THIS ONE.

    What the sellers wants and what they can realistically get are two different things.

    Thank you kindly for your directions and ideas I can implement in my dealings with this sellers.
    That does make a lot of sense to me now.

    Thanks, Jackie.

    Lilia

    If market value is $455,000, you can increase the price a bit when you sell with seller financing but you cannot go to $499,900 – that’s just too much. And another reason you had not takers.

    If you sell with seller financing, a reasonable price would be $460,000.

    When you do the Highest Bidder Sale, once you find a buyer, the ideal way to handle the transfer is for you to be paid $10,000 to RELEASE your option contract then let the sellers and the buyers go to contract together. You’ll be paid at closing. Your $10,000 fee will show up on the settlement statement.

    Hello Jackie,

    As far as I understand I need a Option to buy this home at $460,000 with seller and when I find buyer, who can bring $40,000-$ 50,000 as down payment, I can assign my right to buy to the new buyer.

    What terms would you suggest can we do on sel;ler financing. I would guess the owners would nopt want to go longer than 5 years.
    How do I have to construct the terms?
    Please help.

    Thanks a lot for your support.

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