Get a good quote for your apartment even if the market is down
A slow market may be a market wherever it takes longer time than usual to sell or rent a property. Most land agents or investors have a general plan of the time that it takes to sell or rent a property in their primary space of operation. The real estate market operates with an economic, social and political context and these factors have some way of determining whether or not the market is down or up. Once the economy of a rustic is experiencing a boom time, the flow of cash within the economy impacts absolutely on the real estate sector. Properties available for sale get oversubscribed quickly as a result of many individuals and organizations have disposable or invest-able funds.
When real estate markets cool down, typically inventory increases and the number of buyers decrease. Slowing market conditions make it more difficult to sell homes, yet some homes still sell. So, why do some homes gets offers and others sit on the market? The answer has very little to do with the home itself, as I've heard real estate agents claim. More likely it lies within the poor quality of the marketing efforts.
One of the smart things to keep in mind is that you need to know enough to recognize and act on good advice. If you have a knowledgeable and trusted real estate consultant, you should pay careful attention to their counsel. More often than not when the market begins to slow down, those in the industry are among the first to sense the change of direction. Often, these property professionals find it difficult to convince their clients to lower their prices a little in order to get out of the market on time. In a slow market, those who have cash at hand have serious negotiating edge. It is better to get a good value for your property rather than be forced to sell or wait out the slow time.
Here are some methods for home selling in a slow market.
Cash closing: Buyer pays the sale price at closing in cash regardless where the funding source is from a lender or the buyer. This is the one most people already know and use.
100% owner financing: Seller finances 100% of the purchase price and no bank is needed. Usually, the owner has a lot of equity in the house and knows a lot about financing, including the risk and how to protect buyer default.
Partial owner financing: Buyer gets a mortgage loan of certain percentage, for example, 80% or more, of the mortgage loan from a lender. Seller finances certain percentage of the sale price by taking a note back as the second lien holder on the property.
Lease option, also called lease purchase or rent to own: Buyer leases the property for certain months with an option to buy the real estate property at the agreed purchase price at the end of the lease. Buyer will have to pay the option money or down payment at the beginning for that purchase price and the rent each month.
Open house for bid: It is a method used by some experienced real estate investors. The real estate investor put a lot of efforts to market the property and brings a lot of potential buyers to see the house and let them bid on the house. The seller usually has a reserve if the highest bid does not meet seller’s bottom line.
The critical issue in a slow market is the availability of cash and whatever arrangement makes it cheaper or easier for people to buy a property is bound to attract greater interest rather than a rigid approach to the market.