Hi , I have a friend who built a very large house he’s trying to sell for 500k. His monthly debt service is $4000.00. He hoped to flip it but is having trouble selling it. This is a really expensive house for our area. Does anyone have any ideas as to what he can do?
In two words, seller incentives…
Here are a few that work for some of my clients…He can offer to pay for closing costs, discount points to buydown the rate for the new buyer or he can offer to pay X months of mortgage payments.
One other area that he should also re-evaluate is the asking price itself…Quite often when a property isn’t selling, the seller’s expectations don’t correlate with the market’s reality…
How much is his loan?
How long has it been on the market?
How is the house being marketed?
What kinds of houses are nearby?
Sounds like it also might be overbuilt for the market as well…