Lack of inventory is a common problem for listing agents. A larger problem is the amount of homes that need some work. Move in ready homes can be hard to come by. The homes available need work and all seem to have “issues”. Often there is the misconception these homes are not insurable and cannot be financed so they are often marketed to investors and cash buyers who come in and drive down the price.
This is where Renovation loans can really help. Education is the key to successfully using these programs. Working with a lender that has a dedicated Renovation Specialists on staff is important because the Renovation Specialist can do the heavy lifting on educating everyone so that the whole team knows what the next steps are and what is needed to close the loan.
Listing agents should also consider working with a contractor who understands how renovation financing works. Connecting with a contractor who has design tools to create a blueprint or tour of what the home would look like with the financed repairs allows buyers to see what the home could be. Educating buyers about Renovation loans and what is available is a great way to sell listings.