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  • Writer's pictureKevin Peterson

Selling Your Home in a High Interest Rate Environment? Here Are 4 Secret Strategies You Can Use

Updated: Jan 24

I’ve got not one, not two, but four secret strategies to sell your home FAST and for TOP DOLLAR. These can work if you have no equity, a little equity, or you own your home outright. I’m Kevin Peterson with KPeterson Realty and stick with me because we're diving into these strategies that most agents don’t know or talk about.

Secret #1 - The Rate Buy Down.

Mortgage rates are the #1 thing slowing down potential buyers today and if your house sits on the market too long, the sharks start circling with lower and lower offers. When this happens, the average real estate agent will advise a price cut. Don’t do it. Instead, you need to consider a rate buy down and preferably before you list your home for sale. A credit to the buyer that can shave off 1 to 2% on the interest rate, making their mortgage payments more appealing, especially at the price you want. Give the buyers what they want so you can get the highest price that you want.

Secret #2 - The Assumable Mortgage.

This is straight out of the magician’s hat and real estate investors swear by this profitable strategy. Not all mortgages are assumable so you’ll need to confirm with your lender. But if so, we are telling all the buyers out there in your listing, “hey you can come and assume my low interest mortgage payments”. This works great if your rate is a lot lower than what the market is today AND the buyer can qualify to take over and become the borrower on your mortgage. Your house becomes the shining star in the real estate galaxy.

Secret #3 - “Subject To”

In this strategy, the mortgage would stay in your name and the buyer would start making the payments for you. I know. I know. It sounds wild, but trust me, it's a genius move if you're playing the low-equity game or your house needs a little TLC. You maintain control, and if things go south, you've got the upper hand. What do I mean by this? If your buyer stops paying you, you take the house back, keep the down payment and any mortgage payments that have been already made to you PLUS keep any improvements they did to the house. Most real estate agents don’t know about this and we’ll dive into why and provide more details in another video but this is another way to set your house apart from all the rest.

And now, my favorite...

Secret #4 - Seller Financing.

But first, let me ask you a question - when you look at any downtown skyline - what industry owns the most, the biggest and most expensive buildings? The banks. So if you own your home free and clear and maybe you are facing some massive Capital Gains taxes, this secret strategy could be for you. It is called “Seller Financing” and you basically create an annuity while minimizing your capital gains. You are the bank to the buyer and with my help, we negotiate the terms such as interest rate, timeline, clauses to protect your interest, etc. It may go something like this, “hey buyer, I'm going to let you give me a downpayment of X and you will pay me over Y amount of time (maybe 5 years, 10, 20, 30, 40, 50 years. Whatever.) And you are going to pay an attractive Z% interest rate (4,5,6 7 8 9 10). If your rate is cheaper than the Market, you will be that much more attractive to possible buyers. Then, you can get more money for your house AND minimize your capital gains as you won’t be incurring a large capital gain in this calendar year. I’m not a tax professional so be sure to discuss this strategy with your CPA as well.

Summary of the four secret strategies to selling your home

These 4 secret strategies are the real deal - Rate Buy Down, Assumable Mortgage, Subject To, and Seller Financing. If your agent isn't on this level, it may be time for a change.

I'm Kevin Peterson and I’ve been a real estate agent, private lender, landlord and overall real estate investor for many years here in the San Francisco Bay Area and beyond with skills to solve almost any real estate problem.

So give me a call, email me, DM me, whatever works best for you. Let’s turn your unique situation into a winning plan, whether you are selling or buying.

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