One of the questions that often arises from my testamentary clients, potential testamentary agents and investors is testamentary deposits. For the most part, the 10% insertion rule is only for inheritance sales undergoing the legal confirmation process. If you've read my blogs, you should already know that this is the last place we look for inheritance after investment deals, as we use the new inheritance law that allows us to place any deposit we want . Sounds better?
As a testamentary agent, if you are dealing with end users (buyers who want to relocate) and undergo the old legacy confirmation process, the buyer must place a 10% deposit on your offer. So let's analyze this. It has a pre-approved, gilded FHA buyer who has a 3.5% discount but needs help closing, which is typical in today's market. If we buy a house for $ 300K, your subscription is approx. $ 10K plus a closing of about $ 14K for a required amount of about $ 24K. Most buyers have the payout but not the closing, so you can deal with a buyer who only has $ 10K and must have the seller's closing cost credit.
If we need to place a 10% deposit with your $ 300K offer, they need $ 30K. So do you think this could be a problem? You can bet that this is what happens that this typical buyer doesn't look at a list of heirs or yours or makes an offer through you as they simply don't have the money. So what just happened is that about 80% of FHA buyers who had to go through the court confirmation process to buy an inheritance just disappeared, and there is a cake of smaller buyers to buy their Heritage List, or you as a change agent, making a sale simply cannot make it work.
For the agents who understand the inheritance law that we use (that's what I learn) that for those FHA buyers with only 3.5% off, we would still offer this same house, but we will add language to that offer that would attract the legalization sales process is confirmed out of court and in a typical sales process with minimum requirements. This also means a deposit that makes sense. I spend 1% to 3% of the offer price, so even a buyer with only 3.5% (FHA) can do it. Changeover property equals more sales if you know what you're doing.
So when you understand the process and can get a court confirmation of this process, speed it up, do you think you will have more options for placing buyers in testament homes than other agents have no idea how to do it? . In addition, many times we just match the buyer and equity on both parties' behalf, so we don't even have the competition you see today in your local MLS. Almost everything in my market is sold the first week with multiple offers, so you who have partnered with FHA buyers with limited cash (need help closing). I bet you made many offers with no luck.
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