Selling a Home???? Make your buyers first 6 months payments!
Author: Troy Schuricht • URL: http://www.communityfirstfinancial.comMarch 28th, 2008 •
Need an incentive to help move a home?
The answer is PITI Abatment. Do not let the financial jargon scare you. For years production builders have used this incentive to move inventory. Now every seller/investor has the opportunity to participate.
What is PITI Abatement?
- An incentive to the buyer to have the first 6 months of the mortgage paid by the seller/investor.
- PITI Abatement program is a product designed specifically for home-buyers. You can give a 6% Seller Contribution that can be used for Principle, Interest, Taxes and Insurance payments.
What are the General Guidelines?
- Loan amounts up to $417,000
- Up to 100% of the purchase price in some markets
- Minimum score of 575
- Fixed Rates and ARMs
- Interest Only is available
- Income limitations may apply
- Closing costs can be paid by seller too
- No prepay penalty
What is the Realtor or Investor marketing element?
- 6 MONTHS PAID!
- BUY THIS HOME AND I WILL PAY YOUR FIRST 6 PAYMENTS
- 6 MONTH PAID MORTGAGE INCENTIVE
- BUY MY HOME AND I PAY CLOSING COST AND 6 PAYMENTS
In today’s real estate market investors need all the help they can get. With increased inventory in just about every market place, realtors and investors need to use unconventional tools to create benefits for their potential buyers. I have seen cars, furniture, pools, and televisions given away. But those items can be difficult to include in the average investor transaction. Giving away 6 months of payments can create separation from the other sellers in your market place.
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Joshua Dorkin
Charles Feldman
Ted Karsch.
Richard Warren
[...] Selling a Home???? Make your buyers first 6 months payments!, by Tony Schuricht. [...]
Nice job Troy!
This incentive has worked well for us, too. Often times our buyers of bread-and-butter houses are mainly concerned with monthly payments, so this is very attractive to them. Another great strategy if it’s not selling to a retail buyer, is to switch to a rent-to-own, which also highlights the need to be working with a great lender (great as in they close 100+_ loans/year).
Burn your TV…… go find a deal,
Richard
Chief deal Weaver
[...] Here To Add ValueBarry Cunningham, Are you a Marketer, Advertiser or a Salesperson?Tony Schuricht, Selling a Home???? Make your buyers first 6 months payments!Sean Purcell, What’s Your Six Month Plan?Mary McKnight, 1 Month of blog topics: Ultimate guide [...]
[...] Incentives - Even in a stable market, we have to provide incentives to move inventory. No Cars or TV’s, home buyers aren’t as gullible as you think, if, in this market they have the income, credit score and down payment to purchase their home in this credit crunch, they will see right past that desperate ploy. Incentives should be in the form of money (bonus to agent/closing costs) or costs deferred like this example. [...]
This sounds good…Incentive always attractive