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We just purchased a larger home with a 4.5% loan. We'd like to sell our other home, it is free and clear, I've been cleaning it up and thinking of the best way to sell it.
Some ways that we are thinking:
1) Auction, fast sale, but lower price?
2) Traditional listing
3) FSBO
Also would it be advisable to finance the home? It's a older double wide with pool, 2 car garage on 8 acres in TN. We gave $89,900 2 years ago, don't know if we can get that for it now or not.
It really depends upon what you want. Do you want to dump it at a discount or do you want market value? How close to your older place are you living and how accessible will you be to handle FSBO buyers at their convenience? Listing with an agent will put a lock-box on the home and allow other agents to show it, 24 hours a day, buyers will not have to be dependent upon your schedule.
...this strikes me as a nice opportunity to really use seller financing to attract buyers.
When you have a property that has owned free and clear the temptation is to assume owner financing is the way to go, and that is not always true. If the place is very expensive then the risk to the seller that the buyer defaults and does some major damage is quite high. This sounds like a situation where the value of the land and the improvements (like the pool) are going to be somewhat 'durable' and if you need to reposess from buyers that default you will be in good shape.
I would think that since you have a relatively modest sum into the property you could tolerate a fairly low down payment (I'd suggest about 6 to 10%, which is high compared to FHA, but your "target buyer" is going to be someone that either cannot qualify for FHA or just does not want to go that route...).
Of course anytime you are dealing with a create challenged buyer yiu want to understand what happened to put them in that situation and be very sure they will not stiff you. If yiu are not uo for that than just list it normally.
I do not believe an auction would be to your advantage, as even if the auction format was mostly for "promotion" and you gave the "winner" ample time to secure financing the time from "sale"to settlement may nit be any better than with a normal listing...
Similarly I just don't think a FSBO wouod save you enough in commisiions to matter. When you have the place free & clear your carrying costs are so low you probably do not need the hassle of a FSBO...
...this strikes me as a nice opportunity to really use seller financing to attract buyers.
When you have a property that has owned free and clear the temptation is to assume owner financing is the way to go, and that is not always true. If the place is very expensive then the risk to the seller that the buyer defaults and does some major damage is quite high. This sounds like a situation where the value of the land and the improvements (like the pool) are going to be somewhat 'durable' and if you need to reposess from buyers that default you will be in good shape.
I would think that since you have a relatively modest sum into the property you could tolerate a fairly low down payment (I'd suggest about 6 to 10%, which is high compared to FHA, but your "target buyer" is going to be someone that either cannot qualify for FHA or just does not want to go that route...).
Of course anytime you are dealing with a create challenged buyer yiu want to understand what happened to put them in that situation and be very sure they will not stiff you. If yiu are not uo for that than just list it normally.
I do not believe an auction would be to your advantage, as even if the auction format was mostly for "promotion" and you gave the "winner" ample time to secure financing the time from "sale"to settlement may nit be any better than with a normal listing...
Similarly I just don't think a FSBO wouod save you enough in commisiions to matter. When you have the place free & clear your carrying costs are so low you probably do not need the hassle of a FSBO...
Any suggestions on how to sit up owner financing? Use a lawyer? Standard forms? Thanks for the input. Also, I'be gotten alot of questions about lease option, is that viable as well??
Lease options don't often end in a sale, but it does bring in revenue temporarily. However, it does take the home off of the market. Again, talk with someone familiar with how lease options are handled in your area.
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My gut says...
