Dunedin, FL (PRWEB) September 06, 2012
A Florida real estate broker has found a way to sell and houses fast during the current market collapse, by mining his “disastrous” entry into real estate.
It’s as hard as or harder than at any other time in the last hundred years to sell a house today almost anywhere in the country. But, George Beardsley, broker of Advanced Realty Team, Inc., Dunedin, Fl, has been there before, when the national market was good.
Before he was a real estate broker, he bought a home in Boca Raton, FL, only to learn there were plans to build a garbage burning incinerator a mile from his new home.
“The real estate market was fine everywhere except my subdivision and the immediate area around it,” Beardsley said. “All I knew was hire a real estate agent and let them do whatever it was they did.”
That wasn’t good enough in his neighborhood. “ Nothing was selling, no matter how nice of how low the price,” he said.
“It’s very similar to the current situation,” he said. “The cause is different, but the results are the same. The old fashioned marketing methods did not work in my neighborhood then and they don’t work anywhere today.”
“To make current situation worse, more than five million foreclosed homes are owned by banks and other lenders over handing the market, which means things are not going to get better soon,” he said.
“In many cases this means the value of the house is lower than the balance on the mortgage,” he said. “If a home owner wants to sell, it will require the seller to write a check or try to sell using a technique called a “short sale.” “No one wants to pay the buyer to take their house and short sales can take a year or more.”
“So I dug back into my experience with the Boca garbage incinerator to see if there was something I could use today to help sell houses fast,” he said. “We really leaned valuable lesson then and as I recall so well, we fought against success as hard as we could, but finally gave in.”
Luckily he had a real estate agent who was willing to look for different and creative ways to sell a house and introduced the Beardsleys’s to "owner financing."
“Nice young couple who were both managers at a big name department store, able to afford a home, but needed some time for their credit to improve. We sold them the house and took payments every month.”
“Then one month the check bounced and we were terrified. We hired a lawyer and he wrote a demanding letter and the people made the check good. Not all that hard.”
“That was the only problem we had and in less than two years the new owners got a mortgage and paid us in full,” Beardsley said. “I realized we had sold an unsalable home in a blighted neighborhood at top dollar and collected in full plus interest,” Beardsley said.
“So we got to thinking, how can we use the Boca lesson today?”
The answer, he said, is to look at what you have and find a way to make it what you need to get what you want.
“We had a house fully paid for and were in the position of being the lender in the situation, so we were able to sell to someone who needed financing and did not qualify for a loan at that time, even though it appeared they would qualify in time because they had good income and time on the job.”
“Everyone wants to sell at full price and for all cash,” he said. “And that is just not possible today. We took a risk and it worked out fine. Sometimes it will not work out, so the seller has to decide which risk is greater, not selling or taking a risk to sell.
By taking the assets attached to the house, such as a good mortgage, the ability to rent for more than the mortgage, or a fully paid for house, or house with equity and a mortgage we can structure sales that otherwise would be impossible,” he said.
“Using techniques growing out of the Boca experience, we can buy homes over mortgaged on some occasions and pay people the price they want even if above today’s market value if we can work out an agreement on how to structure the deal so we can rent the properly with a positive cash flow.”