Miami Housing Market: Get the Price You Ask For
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When buyers gain more leverage in the Miami housing market, sellers must think out of the box to attract buyers to their homes, then to fixate on their asking price. This article discusses 8 possible ways for Miami housing market sellers to get a home sold at least a little closer than what you might have gotten otherwise, if not exactly at your asking price.
First is allocating a decorating allowance. If your décor looks quite old and out of trend, then allot some cash for upgrades, new carpet and a paint job. With good bidding on the job, you may be able to keep your price, while giving the buyer his or her wants. You can even make some money on the backside by not dropping your asking price. Buyers in the Miami housing market would typically love $20,000 to spend the way they want on decorating.
Second is to consider your mortgage payments for your next move. Since you as a seller would also be moving into a new house after the current one has been sold, it is advisable to consider mortgage payments. On a $300,000 mortgage at 6 percent interest, the principal and interest payment is $1,798.65 monthly. Over three months, this rate of payment would translate to a savings of $5,395.95; over 6 months, it would be more than $10,791.90.
Thirdly, for some buyers, purchasing a home in Miami is all about the monthly amortization. A strategy that has been proven to be quite effective is inveigling buyers into your price with an offer to buy-down their interest rates by means of paying points. If buyers can get the interest rate low enough, they will be able to bear a higher mortgage for a lower monthly payment because of your point money left at the table. This tactic can be more aptly characterized as “selling the deal” rather than selling the house.
Fourth is another “selling the deal”-kind of tactic–offering a “buy house now, get a Caribbean Cruise later” sort of incentive furtherance. Sometimes, a buyer might get cash back at the settlement table, but wouldn’t dare spend it in a luxurious way. Offer a cruise, an expensive spa weekend, airline tickets to some exotic travel places around the world, or some other out of the ordinary travel package to lure them. When you consider the inventory has more than doubled in the Miami housing market, chances are substantial that the only thing distinguishing one house from another may be the cruise line.
Fifth is to entice buyers by offering a free media room. The prevalence of at-home, non-sticky, low-ticket price media rooms is the primary reason that movie ticket sales have plummeted in recent years. During the recent Christmas holidays, some media rooms packed with big screen monitor and surround systems were selling for less than $5,000. This one investment alone could be the one beguiling factor that a buyer needs in order to sign the bottom line.
Sixth, another selling tactic would be offering year-long home owner association fees in condos. Relieving buyers of those expensive dues is considered as a more direct and practical benefit to them. Depending of course on the community, these fees could top out to more than $500 every month, which translates to $6,000 for the first year. Offering this benefit could definitely entice the cash-poor buyer.
Seventh is to offer seller financing. This is an option quite overlooked by a number of sellers because either they or their realtor simply just do not bother about it too much. Seller financing can take various forms–as a first trust, second trust or even 100 percent financing for the whole house. For the seller who can swing a first-trust mortgage, this can actually become quite the money-spinner. For instance, a $100,000 mortgage offered at 7 percent over 5 years with interest-only payments followed by a balloon payment of $100,000 would actually translate to net earning of $135,000 to the seller over the life of the loan–not that bad for a return of investment.
Lastly, pay off bills. Some loan plans will enable sellers to redeem credit cards, auto loans, and the ilk, for the buyer. It could spell the difference between qualifying for the mortgage and having to buy a smaller, less expensive home. Over again, hold on to your asking price and offer to pay off debt for the buyer.
These tips may be quite fancy, but there is absolutely no harm in giving at least one of these a try. In an imminent buyer’s market like the one in Miami right now, alternatives for selling a home at the price you ask are in short supply.
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Source by Earl Juanico
