This is the social network equivalent of another motto that comes from the business world: “You are just as good as the last deal you made”. But who has enough time and money to share with other people information for free? You can look at it from the other perspective as well: if you act as if you had all the resources that would allow you to share with others you will eventually get them.

Procuring the buyer a way to get a loan is probably the best selling tool in residential real estate

How this plays into the real estate market? Well, most people today don’t seem to be out looking for a house, but are looking for somebody that will help them get a loan. Addressing the financing issue and helping potential buyers qualify through maybe some financial coaching is proven to be a key factor for facilitating sales in the only area that seems to be moving well now: the first time home buyer.

I have been selling houses for a few months now using some other broker or Realtor and I have noticed that the interest in the property was more dependent on the question: “Is it going to appraise for the agreed selling price?” rather then on the merits of the house itself. Naturally the buyers need to like the house, but they depend utterly on their ability to get a loan for actually getting it.

I have seen that one approach that is growing in popularity consists in marketing to potential buyers that have bruised credit who come in the house as tenant with an option to buy and then spend the following three to six months in fixing their credit and using the option to actually complete the transaction.

The house needs to be price within a value range that will be confirmed by the appraiser, but with this system you can get a buyer in the house in as little as 15 days and you can have the house sold in 3 months if the pre-screening of the buyer was done well and he follows the direction he is given to improve his credit.

I am currently testing this strategy on the house I have on the market right now using the help of a broker that has been doing it many times in the last years. It is a very different type of sale as compared to the usual listing, but the time of the actual sale can be comparable (the time to sell on the MLS right now averages 3 months in Florida for exampe) and while you wait for the final closing, you get some cash flow from the rent as well as the option deposit that you will keep if the prospective buyer doesn’t get his credit fixed and therefore his financing.

I will update you on the outcome of this test that, if successful, could change a lot the way I market my properties. The nice thing about it is that, while you market the property, you also build a list of contacts to which you can market the next house and you get referrals from the people you have helped in getting a new home.

Roberto Mazzoni