Looking to sell your multimillion dollar property anytime soon? Well then you are in for one long wait to say the least. You see, the world economy was dealt a heavy blow recently by a word as strong as “recession”. The economy of the whole world spiraled downwards and as a result people are left with lighter pockets and in all possibility need a long time to recover from it. The worst bit is most people who may have the capacity to purchase a multimillion dollar property have all been hit hard across the face by global recession and may be unwilling to dish out a huge amount on property deals. However don’t lose hope and heart for selling your property maybe difficult but it is far from impossible. A proper organized approach can pay you very rich dividends and you may well sell off your property at a decent price range. The trick here is to be smart and work with and look at the right people who can work on this property sale with enough enthusiasm and before you know it you will be at peace with a deal completed in no time. Here are some tips to help you achieve your goal.
The first thing you must do is reach a consensus as to how much you value your property at and how much you are willing to sell your property for. Be prepared for negotiations beforehand and be sure about what is your lowest limit. Now that you are mentally prepared we look at your target group.
Establishing a target group for your property is essential. You would not want to waste time or energy on a bunch of people who may not have the capacity of buying your property or intend to get into a lot of paperwork with regards to getting credit to buying your property. So the trick is to target a specific income group which you must settle as per the valuation of your property.
Once you are decided on your target group you must conduct proper research on their favorite publications. This is not as difficult as you think it is. A simple bit of handiwork online or a visit to a publication office will let you know which publication is read by whom. The next bit of work is to prepare an ad with a high quality picture of your property and put it up in these publications. You may even place an ad at the various leisure clubs these people you have targeted attend.
The most important part of the procedure is to hire a realtor or a broker. This can’t be just any other broker but someone who has experience working on properties of this price range with decent amount of success. Most often it is your broker is the deciding factor in such deals. So if you get a good broker, half the battle is won right there. So now that you have some idea as to how to get about things, go on and may you see success in the world of real estate.
I’m often asked the question – Can you really purchase a bank foreclosure for pennies on the dollar? The answer is yes and no.
The reason why it’s no is pretty obvious. Let’s assume you own a house for $200,000, would you sell it for $5,000 – $10,000, of course not. You might sell it for $160,000 – $170,000 to sell it quickly, which works in today’s market. Banks are the same, they’re not going to let their homes go for 5 – 10 cents on the dollar, when they can sell them for 70 – 80 cents on the dollar. This is all pretty much common sense.
I just told you that banks will not sell you a home for pennies on the dollar, then you might be asking who does? The answer is the government. The government is in control of many types of homes including:
1 – VA Foreclosures – You can purchase for $0 down using VA financing and you don’t have to be a veteran. This is America’s best kept secret.
2 – USDA Foreclosed Homes – $0 down using their financing.
3 – HUD Homes – As low as $100 down. (Only in certain states)
4 – Fannie Mae Homes – 3% down using their financing. Use a grant to make up the difference.
5 – Freddie Mac homes – 3 1/2% down using FHA financing. Use a grant to make up the difference.
The best type of government home is a HUD home. In the past the government has run special programs, usually when a house is on the market for more than 6 months. You can get huge bargains, it all depends on what state you’re in. With the other government homes you can get a great buy but not as good as with a HUD home.
When we say pennies on the dollar we mean between 10 -25 cents on the dollar. If you’re looking for anything under 10 cents on the dollar you have to look at tax sales, which is rare and complicated to do. (You have to foreclose on the person on the Deed of Record.)
One of the best programs the government has is called Best Offer. If you’re in a state where many people don’t know about this program, you can bid on a house and get it for 25 cents or lower on the dollar. Another program is called Neighbor Next Door, where HUD will take 50% off their list price (where the house is already discounted 10% – 30%) for certain occupations. Another one is the Dollar Program, but this is only for non-profit organizations.
The longer a house sits on the market, the better deal you can get. If HUD has many homes that have been on the market for over 6 months, and the more homes the better, then HUD will come out with a new incentive program to sell the homes quickly. And in today’s market where homes are just not selling as quickly as before, you definitely want to keep an eye on HUD for their opportunities.