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| Real
Estate Agent Information |
AS
A BUYER'S REAL ESTATE AGENT,
HOW DO I EXPLAIN THIS PROGRAM TO THE LISTING AGENT AND SELLER?
THIS MAY ALSO BE USED WHEN LISTING A PROPERTY |
To be successful,
the buyer’s agent must explain to the listing agent how this program
can help the listing agent and the seller. This program offers several
advantages to the seller.
First, the seller will receive top appraised price
for the property with little or no negotiations in the sales price.
The property will sell faster, usually within 30 days, because the
pool of prospective buyers is larger since there is no money coming
from the buyer. This means that the seller is not saddled with additional,
unnecessary monthly notes to pay. Every time a seller pays a payment
on the house that is money the seller will never get back from the
sale of the property. That money is gone forever. After all, the price
of the house will not go up because the seller is making payments
on the house.
Last, but not least, the seller can make more bottom line money from
the sale of the property by using the Family Home Provider Program.
Below is an example of a transaction using a 3%
gift and a processing fee of $400 for a total Service Fee of $3,400
to
Family Home Providers, Inc. from the seller.
Also, the property may appraise for $2,000 to $3,000 more than the
asking price and the seller will net even more.
If the house appraises for more than the asking price, the seller
could raise the price of the house to the appraised price.
Sellers/Builders must sign the “Sellers/Builders Participating
Home Service Fee Agreement Form 106”
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EXAMPLE:
Asking Price/Appraised value of house is $100,000
3% gift with a $750 processing fee
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Normal
Real Estate Transaction |
FHP
Program Transaction |
| Contract Sales Price |
$95,000 |
$100,000 |
| Closing Costs |
$2,850 |
$3,000 |
| Real Estate Commission |
$6,650 |
$7,000 |
| FHPP
Service Fee |
$0 |
$4,000 |
| Net to Seller |
$85,500 |
$86,000 |
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