Resort Buyers Respond to Flexible Terms
By The Walsh Group
In a “perfect” world for sellers, every Summit County CO real estate sales transaction would be a cash deal! There would be “perfect” buyers who can easily pay full price for a Summit County CO resort property.
In reality, however, only about one in eight buyers will actually purchase Summit County or Breckenridge resort real estate with cash. The other buyers of Colorado resort mountain properties arrange for mortgage financing using one of several different loan packages that are currently available.
Since the overwhelming majority of our Summit County resort homebuyers (87%) do secure a mortgage, sellers can turn that fact into their advantage and turn the transaction into something closer to “perfect”. They can offer flexible terms to the buyers of their Summit County, Colorado homes. Flexible terms often trigger a more suitable purchase offer. The old saying, you can have price or terms rings true. If a seller of Summit County CO real estate helps to make it easier for the buyer to say yes by presenting flexible terms, the seller is more likely to receive better offers at higher prices.
What flexible terms are we talking about?
Sellers can offer to pay discount points, closing costs, or other expenses normally paid by the purchasers. It may cost a bit but time is money and the quicker sale will give the seller more freedom.
They may offer to ‘buy down’ the interest rate on the purchaser’s mortgage. This option may be variable depending on the mortgage.
Sellers can offer to carry a second mortgage. Maybe the buyer is $100,000 short of qualifying for the home but the seller is willing to extend a second loan.
Sellers can also offer to subsidize monthly homeowners fees for a specified period of time. This is especially helpful for older condominiums with high homeowners association dues.
When sellers “sweeten the pot” through improved and/or flexible terms, they exponentially increase their chances of selling more quickly and for a better price. So, it pays in the long run to remain open and creative through the entire process.