{"id":2618,"date":"2008-02-19T12:07:03","date_gmt":"2008-02-19T19:07:03","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2618"},"modified":"2008-02-19T12:24:13","modified_gmt":"2008-02-19T19:24:13","slug":"down-payment-assistance-is-another-creative-financing-option-you-can-deploy-to-make-sure-yours-is-the-home-that-sells","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2618\/down-payment-assistance-is-another-creative-financing-option-you-can-deploy-to-make-sure-yours-is-the-home-that-sells\/","title":{"rendered":"Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>):<\/p>\n

 
Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells<\/b><\/p>\n

It’s a hard world for home sellers right now. It’s possible that things are slowly getting better, but a qualified buyer still has at least ten suitable homes to choose from.<\/p>\n

Does this mean you might sell now, or you might sell a little later? Probably not.<\/p>\n

Does it mean you might sell for your price, or you might have to accept a little less? Probably not.<\/p>\n

What it means is that, if your home is not the one that answers most of a potential buyer’s needs, it probably won’t sell at all in this market.<\/p>\n

We’ve talked before about being the most appealing — best priced, best prepared, best presented. These are the homes that will sell to the best qualified buyers — while the near-misses languish month-after-month.<\/p>\n

We’ve talked about using seller-financing to help less-qualified buyers. Carrying back a note for a third mortgage entails a risk of loss, but, again, that marginal difference can be moot if the house wouldn’t sell otherwise, or if it sells months later for a much lower price.<\/p>\n

There is another creative financing avenue you can pursue, although this one comes with an assured loss to the seller. It’s called Down Payment Assistance. Through programs like AmeriDream or Nehemiah, sellers contribute a portion of the sales price to serve as down payment or closing cost assistance to the buyers, who receive those funds at close of escrow as a grant.<\/p>\n

This is what I call Psycho Lender Math at its worst, since the lender is permitting the sellers to discount the home by a huge percentage while pretending that that same pile of money is coming to the buyers as a grant from a neutral third party.<\/p>\n

The house still has to appraise for the full purchase price, so it really is just a seller discount disguised as a shell game — but if it means your house sells while all the others languish, you still might be ahead of the Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link):  Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells It’s a hard world for home sellers right now. It’s possible that things are slowly getting better, but a qualified buyer still […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,6,5],"tags":[],"class_list":{"0":"post-2618","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2489,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2489\/seller-financing-can-give-you-an-edge-over-your-competition-in-the-phoenix-real-estate-market\/","url_meta":{"origin":2618,"position":0},"title":"Seller financing can give you an edge over your competition in the Phoenix real estate market","author":"Greg Swann","date":"January 12, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Seller financing can give you an edge over your competition in the Phoenix real estate market If you have significant equity in your home, you have a potent weapon at your disposal on resale. The big news\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":113,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/113\/7-or-more-creative-ways-to-market-your-property-in-a-cold-housing-market\/","url_meta":{"origin":2618,"position":1},"title":"7 (or more) creative ways to market your property in a cold housing market…","author":"Greg Swann","date":"July 20, 2006","format":false,"excerpt":"The Real Estate Investing For Real Blog cites 7 Creative Ways to Market Your Property in a Cold Housing Market:Properties are not getting multiple offers and selling within hours of listing anymore. Things have calmed down a bit across most of the country, and properties are now sitting on the\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1096,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1096\/how-much-is-my-agent-charging-me\/","url_meta":{"origin":2618,"position":2},"title":"How Much is My Agent Charging Me?","author":"Russell Shaw","date":"March 1, 2007","format":false,"excerpt":"Lin Savage wrote: I am evaluating a proposal from a realtor to sell my current home and represent me in buying a new home (all in Texas). I would like some assistance in clearly understanding the commission structure as I consider her proposal.In the \"right to sell\" doc that she\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"cash-pile-notes","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2007\/03\/cash-pile-notes.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3053,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3053\/do-you-want-to-make-sure-your-home-will-sell-little-things-matter\/","url_meta":{"origin":2618,"position":3},"title":"Do you want to make sure your home will sell? Little things matter","author":"Greg Swann","date":"May 4, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). (Incidentally, this kind of previewing is one of the reasons I developed the ideas that led to engenu. You can organize photos and details for a lot of houses into one web site, then you can easily\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":641,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/641\/i%e2%80%99m-all-in\/","url_meta":{"origin":2618,"position":4},"title":"I’m all in","author":"Russell Shaw","date":"November 16, 2006","format":false,"excerpt":"I'm all in. Meeting Greg and Cathleen was good for me too. I really enjoyed the time we spent together. As all of the regular readers here already know they are very cordial and intelligent people. And isn't that the whole idea for the individuals who congregate here - find\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2849,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2849\/dont-blog-your-listings-how-about-this-dont-try-to-pass-sales-call-reluctance-off-as-social-media-marketing-expertise\/","url_meta":{"origin":2618,"position":5},"title":"Don’t blog your listings? How about this? Don’t try to pass sales call reluctance off as social media marketing expertise","author":"Greg Swann","date":"March 28, 2008","format":false,"excerpt":"I know, I know -- I owe, I owe. I owe Jeff Brown a discussion of every little last thing we do to launch a new listing with maximum impact. 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