Using the Web and social media to sell real estate

Today I participated to my local real estate investor association meeting (you see a short video below). The consensus amongst the active investor present there are at least six strategies that are working TODAY in the current market to sell a house.

There are at least six different ways for selling a house today.

Not all of them work equally well in all markets, but again real estate is a field that requires judgment and you will need to figure out by yourself what works for you.

The six strategies are as follow:

1.FHA loans are the king of the hill since they provide a very easy way for home buyers to get into their new home. The qualification process is somewhat stringent: they need to have at least 620 credit score and the house you are selling need to appraise correctly, otherwise they will not get the loan and you will have to reduce the price to what the appraiser has established to drop the deal. Yet there are is a big number of buyers in this category that are using this system.

2.Cash buyers: they are still pretty much around and looking for very good deals, therefore you need a house in good shape that is below current market value (let’s say 80% but this is just to give you an idea – there is no fixed number). Domestic cash buyers are estimated to be 40% of the buyers out there.

3.Lease option or rent-to-own buyers. These are people who can’t qualify for a loan yet, but could qualify later, once they have corrected their credit score. They usually get in the house by paying an option fee (often non refundable) and them by paying rent every month untile they can get a loan and cash you ouy.

4.Seller financing is still one of the preferred techniques in creative real estate transactions. You need a seller who owns the house free and clear and who doesn’t need all the money right now. It is the fastest way to get a buyer since you bypass all of the lending process, but will tie up you capital for a longer time.

5.Foreign cash buyers: they are not so common but yet are out there and can pay cash for close to full market value, if you provide them all the needed services for a long distance transaction and for the subsequent management of the property.

This shows that the real estate market is still alive and kicking even if the rules of the game have changed.

Roberto Mazzoni

P.S. If you find this article useful, share it with others on social media by using the buttons below.