What is the fastest way to dictate the sale of your home?
Simple. It's the TERMS of the sale.
Terms will out pace any other variable when it comes to selling your home.
What do I mean by terms?
Terms is a generic word for the details of a transaction. It goes beyond "when" you want to close, and the "location" of closing or "possession" terms (immediate or rent-back to the seller, etc).
The terms dictate the details, and specifically, it is the details of the money-part of the transaction. The terms dictate the when, how much, for how long, and to whom.
One time, I bought an inherited home from 6 siblings. Each of the decedent's heirs had their own priorities and restrictions and requirements for their inhearitence. The youngest was a drug addict and wanted his cash as soon as possible, even before we closed. On the other end of the spectrum, the most successful of the kids didn't want the money this year because of tax-purposes. In other words, some of them wanted all their money up front either at the closing or prior to closing, and others were more flexible for when they got their money. We bought the home for $120,000, but it wasn't split equally at $20,000 a piece. Since the requirement for cash upfront is more expensive, the drug addict got the least amount, $10,000 and the person who could wait the longest for their cash, received a premium of $30,000. The rest took a combination of some cash up front and some cashflow along the way while I was fixing it up, and the rest at the end. My goal with that home was to rent it out and fix it up while it was being rented for 3 years. I paid everyone off at the end of the 3rd year (4 year term total). It was great deal for everyone involved.
We bought that house in 14 days. Doesn't that sound fast? Terms are all about flexibility. The person with the most flexibility has the most control on the system. That means, if you have flexibiliy, you can have the most control.
Although, most people think "All Cash", is the only way to sell a home, that reality is much greater. When you open your mind to different terms, the beauty of real estate becomes unlimited. Remember, "all cash" is just an example of a term. There are infinite other options available which will move your property immediatly.
Post a Comment
I'd be delighted to consider your comment for posting