With the Idaho Real Estate market changing along with the rest of the country it is those 5% of the 95/5 rule (yes, the 80/20 rule is history) that will survive due to "Thinking outside the Box".
I recently wrote a blog about how to correctly write Craig's List ads that can generate business and make sales. Just like in print advertising, there are ads that do nothing and then there are ads that are lead generating machines.
There is another tool out there that has traditionally been used in farms, ranches and commercial real estate. I am referring to "Real Estate Exchanges". No, I am not referring to tax deferred 1031 exchanges. I am referring to good old fashioned "trades".
In the mid 80's when mortgages were 17 ½% owner financing, wrap-around contracts, all-inclusive deeds of trust and "Real Estate Exchanges" were the only way to sell real estate.
Earlier this year I created a relationship with a builder. He had 2 new spec homes that had been on the market for nearly a year with no luck. I agree to co-list both homes and we were successful in getting the less expensive home sold due to having it staged and having the right buyer come along at the right time.
The more expensive home was another story. This builder wanted to move this home and free up his cash flow. I presented the idea of exchanging the home for a smaller home that would be easier to sell. He spoke to his accountant and they both loved the idea.
I then wrote a new ad and posted it on Craig's List and I immediately received 5 emails and one call. We now have an offer in place to exchange my builder out of an expensive spec home and into a less expensive home that should be much easier to sell and if does not sell will easily rent for more than the payment which the more expensive spec home would not have done.
The advantage is that one typically does not have to negotiate the price of your much at all, if any. We were lucky to find a local buyer that had not even listed their home but have been thinking of a larger home for their family. The exchange will benefit both buyer and my builder.
In real estate exchanges what one is basically doing is trading equity for equity. Talk to your Title Company or attorney and find one that knows how to do a Real Estate Exchange. If your closer does not know how to do them I highly recommend you find one that knows how to do them.
Real estate exchanges are not hard to do and may be the tool you need to make a sale where you may not have been able to do one before. How many sellers do you have that want to move down and how many do you have that want to move up?
Exchanges are not for everyone but my bet is that every one of you out there as a sale or more that can be made by "Thinking Outside The Box" and taking a serious look at Real Estate Exchanges.
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Posted By: George Tallabas - Boise Idaho Real Estate Agent - Associate Broker
with RE/MAX Advantage, Canyon Counties #1 Brokerage in sales and listings
specializing in Boise Idaho Real Estate and Southwest Idaho Real Estate.
George,
That's a very unique idea and a great example of thinking outside of the box to get the deal done for your client. I hope you sell the smaller home quickly. Thanks for the info.
I like it...thanks for this outside the box idea.
Now Have a Blessed Day,
John Occhi, Hemet CA REALTOR®
Mission Grove Realty
Yes, I like thinking creatively. I have lived through bad times in slow markets in the 80's and different approaches are always helpful. Thanks for the posting. Have a great day!
Ricki Eichler
Coldwell Banker Heart of the Hills, Realtors
Kerrville, Texas
George - "Exchanges" happen every once in a while here is SW Missouri. I've had a couple trade their piece of land to a builder for a new duplex. Usually it is someone wanting to get into town that initiates the "trade."
Andrew - Thanks for the well wishes
Rick - Thanks and congrats on making it through the tough times
Pamela - Thank you and make sure and keep your eyes open for the opportunity to do your exchange
Debbie - Good for you for "Thinking outside the box!"
Good suggestion, George. Sounds a little like a barter system. Thanks for the idea - bookmarked for the future. I can see some possiblities with some properties I have seen.
Jeff
I've done a lot of exchanges, but never used it quite this way. Thanks for the new idea. On a side note, that Craig's list is quite a good source of business, isn't it?
George,
Thanks for sharing another great idea - I had never heard of this one before.
George
Really fantastic tips! Thanks for sharing your ideas on how we can think outside of the box. I love learning new tricks!!
Great idea! Way to think outside the box. We will need lots more of that over the next few years.