How Do You Sell Your Property When Hot Markets Cool Off...Without Reducing Your Sales Price?

For more than a decade, "hot" real estate markets have been playgrounds for people wanting to make fast money.

Hot markets are fun and profitable while they last. As money pours into hot real estate markets, property values appreciate quickly, doubling, and even tripling within a year or two. Profits soar. And because of the high profit, and fast returns, investors perceive little risk. In such markets, real estate buyers and sellers can make profits without bothering too much about strategic thinking.

How Do You Recognize A Cooling Market?

Strategic thinking becomes critical when hot markets cool off. How do you recognize a cooling market? Here are some signs.

• Appreciation rates begin to flatten out.

• Buyers don’t come clamoring to buy your property.

• Rising interest rates begin to price potential buyers out of the market.

• More properties are available for sale than there are buyers.

• Real estate investing feels riskier and people are less willing to buy.

How Owner Financing Gives You A Competitive Advantage Over Other Sellers

When hot markets cool off, it is essential for you to develop a strategy that gives you a competitive edge over other sellers in your area.

When there are more properties on the market than interested buyers, how do you make your property stand out among the competition?

What Are Your Choices Without Owner Financing?

If you are a property owner who does not understand owner financing, you have two choices.

• In the first choice, you give up equity in the property. You either discount your property or you accept a lower offer than your asking price because you think that is the only way you can find a buyer.

• With the second choice, you hold out for your full listing price, waiting for the market to turn, hoping that interest rates will go down, and the property values will go up again. This choice might work for you. It might also price you out of the market.

A Solution That Increases Profit, Allows You To Sell Quickly, and Create Cash Flow

There is a much better solution than cutting your price or waiting to sell.

This solution is owner financing.

Owner financing gives you many advantages.

• It allows you to sell your property at or above your asking price while other sellers are discounting their properties.

• It allows you to sell your property quickly, while other sellers are waiting to sell their properties.

• It also you to avoid extensive price negotiations, because your buyer is willing to accept your price in exchange for owner financing.

• It creates cash flow after you sell your property.

Don’t Make This Seller's Mistake

During the last year, I have watched a seller in my neighborhood lose money because the seller would not owner finance.

The house was on the market for more than a year. The real estate agent first listed the price for a whopping $950,000. It was clearly overpriced. The house didn't sell.

Then the first PRICE REDUCED sign appeared, and the steady decline started.

$950,000
$929,000
$899,000
$869,000
$849,000
$799,000
$780,000
$760,000
$739,000
$725,000

Early in the decline, my husband wrote a letter to the seller asking if the seller would sell the property by carrying a note. In other words, he asked if the seller would owner finance.

The real estate agent strongly advised the seller not to owner finance because it would mean taking a discount on the property.

More than a year later, a SOLD sign finally appeared.

The High Cost Of Refusing To Owner Finance

Let's assume that the buyer paid the lowest asking price of $725,000. This means that the seller's asking price went down from $950,000 to $725,000.

This is a difference of $225,000. A quarter of a million dollars.

Add to that, the seller paid mortgage, taxes, insurance, and maintenance on a vacant property for more than a year.

The question then becomes: How much did the seller lose because the seller wouldn't discount a note?

In this particular case, the seller lost at least a quarter of a milion dollars, just on the sales price.

A Better Solution

When times are tough in real estate, the common solution is to do what the real estate agent advised the seller. Keep reducing the price until someone finally buys.

Owner financing is a much better solution.

If the owner had agreed to owner finance,
the seller could have sold the house at least a year earlier, for a much higher price. And the real estate agent would also have earned a higher commission.

A Simple Guide To Owner Financing

The reason I was acutely aware of this seller's situation was that I had recently co-authored a book about owner financing, Owner Financing Made Easy: The Safest Way To Increase Profit, Sell Quickly, and Create Cashflow, before the owner put the house on the market. The book was written just as the markets were begining to cool off.

The book describes owner financing in clear, simple terms.

I learned a long time ago, that if I really want to understand something, I need to teach or write about it.

I have attended several real estate courses about using real estate notes to buy and sell property, but most of the presenters simply pulled out the financial calculator and punched in numbers. None really explained how notes work.

I have read other books on the topic of owner finance and discount notes.

I don’t think you will find any book anywhere than is clearer than Owner Financing Made Easy on the topic of using notes to owner finance properties.

Table Of Contents Of Owner Financing Made Easy

• Part I: The Why Of Notes

• Chapter 1. Why Owner Financing Is Strategic

• Chapter 2: Why Owner Financing Is Profitable

• Chapter 3. Why Owner Financing Is Safe

• Part II. The What Of Notes

• Chapter 4: What Is Your Note Creation Strategy?

• Chapter 5. What Is Your Note Holding Strategy?

• Chapter 6. What Is Your Note Selling Strategy?

• Part III. The Who Of Notes

• Chapter 7. Who Will Help You Create A Note?

• Chapter 8. Who Will Help You Hold A Note?

• Chapter 9. Who Will Help You Sell A Note?

Where Do You Get The Book?

The book is available only from my co-author. Visit Owner Financing Made Easy to get more details about how you can use owner financing to:

• Safely increase your profits
• Sell quickly.
• Create cash flow.

Why not act immediately to find out how owner financing is your best selling solution in a tough market?

For Your Real Estate Investing Success,

Kalinda Rose Stevenson, Ph.D.

P.S. Don't let anyone talk you into reducing your asking price until you read this book, and discover how you can sell your property for your asking price, even in a declining market.