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One way to make your home sell faster is to offer financial incentives to a willing buyer. Here are a few ways to do this.

There are several types of creative financing you can offer to a buyer:

• Below-market interest rate
• No down payment
• Seller-paid closing costs
• Seller-held second

The cash to create these attractive financing terms all come from some of the money you are saving by not paying a Realtor's commission. Keep in mind that many sellers who are using a Realtor may still have to resort to offering buyer incentives. Not every home that is listed with a Realtor sells for the listed price within the specified listing time. In fact, many Realtors troll for new listings by calling on expired listings! These are properties that were listed with a Realtor but still did not sell.

Let's look now at how to offer creative financing to a buyer.

Below-Market Interest Rate
What if you could advertise an interest rate that is 2% below the going rates for a good credit buyer? For example, if the interest rate for a buyer with at least 20% down is 6%, can you imagine the calls you would get if you advertised an interest rate of 4% in your ads, on your voice mail and on your online advertising? So, how do you do this?

This is done by offering what is called a rate buy down. To do this, you will pay up to 3 or 4 points to the buyer's mortgage company. If you are using Your Company Name as your mortgage company, I can get for you the exact amount you need to pay to offer a rate that is 2% below the standard rates. This program will give buyers a lower monthly payment, and let them feel like they go a really good deal from you.

At settlement, you pay the $20,000 back to the company, plus the 10% fee, or $2,000. You end up netting $178,000.

This program only works with lenders who do not require seasoning of funds used for settlement. One of the advantages of working with me is that I can work with you to offer this program if you are in the situation where you need to move your home quickly.

Seller Paid Closing Costs
Closing costs can amount up to 6% of the purchase price of the home. Typical closing costs include:

• Transfer taxes
• Title insurance
• Buyer's points
• Underwriting fee
• Processing fee
• Lender fee
• Pre-paid interest
• Recording fees
• Certification fees
• Document preparation fees
• Attorney's fees
• Property survey fee
• Funds for escrow (property taxes & homeowner's insurance)

These fees can quickly add up to a lot of cash. If you offer to pick up these fees, you can attract buyers who may qualify for the mortgage but who do not have the extra cash for closing costs. If you call my office, I can give you a good idea of what the closing costs would be on your home.

By holding a mortgage, you collect a monthly interest payment. The loan can either be fully amortized on a 30 year schedule, or be interest-only. In either case, you would want the balance paid in full in 10 years. This is known as a balloon note. For example, if you sell your home for $200,000, but carry a second mortgage for 10%, you will be having the buyer pay you on the amount of $20,000. If you amortize this at 8% for 30 years, you would receive monthly payments of $146.75. After 10 years, you would have received principal payments of about $2,453 out of the total payments of $17,610 that you would have received over the 10 years. After 10 years, the buyer would have to pay you the balance of $17,547. Typically, the buyer could then refinance their mortgage or take a second mortgage from their bank to pay you off. If you chose to take interest-only payments over the 10 years, you would get monthly payments of $133, based on 8% interest.

As you can see, there are several ways you can provide financial incentives to get buyers to do business with you. As your mortgage consultant, I can help advise you as to which one of these methods would work for you based on your situation and that of your buyer. If you give me a call I can work with you to see how we can help you move your property faster.

About My Services

I would like to help you with the task of marketing your home. To do this, I am able to do the following for you:

• Create a Property Information Sheet to give to visitors
• Assist you with the various forms of internet advertising
• Help you use the online services to get an idea of what your home is worth.
• Be available when you have an Open House to help greet prospective buyers
• Help explain the various financing options your buyers have
• Pre-qualify any buyer who has not yet talked with a mortgage company
• Obtain a loan commitment from our network of lenders
• Determine any seller assist that a prospective buyer may need
• Co-ordinate all aspects of settlement or escrow, including title search, appraisal, paperwork and other services

At Your Company Name, we offer mortgages for most buyers, including ones who are self-employed or who have damaged credit. We have lenders who offer 100% financing meaning no down payment for qualified buyers.

We also offer mortgages with start rates as low as 1%, making it easier to get a buyer into your home.

If you have any questions about how I can help you sell your home, please call me at Company Phone #.