By: Ok, here’s my open admission that I’m a Starbucks addict. Most days I get my regular: Decaf, grande, extra hot, with whip, mocha for Steve. I justify the habit by calling it “networking”, which to some extent it is, but honestly, it’s a lot more about the chocolate syrup in the mocha.
At any rate, today I was surprised when a hand written note on the door said today Starbucks would not be taking CASH, only credit cards and Starbucks cards. Inside the store, inquiring minds had to know. The culprit: the safe didn’t understand February 29. With no way to get into the safe, there was no place to put/retrieve the money. I thought to myself, “I think that’s illegal…you have to accept cash”, but I just paid with a card anyway. Another customer handed over $2 for his grande drip, and was given the coffee at no charge. I think the employees know it’s illegal to decline cash as well, so when the issue was forced, they did the right thing.
As I read the paper, I noticed a few people would read the sign and then leave, never venturing inside.
Looking for how this relates to real estate? While no one can be forced to accept all forms of payment/financing, with current market conditions, a seller would be crazy not to accept any and all forms of legitimate financing. Whether the buyer will be using conventional financing or cash, FHA or VA, now is not the time to be picky. Sure FHA and VA are going to impose costs on the seller. Explore those costs at the time of the offer, and if necessary, counter-offer appropriately. If your property is listed for under $200K (take note of this positive article in the Arizona Republic today about properties under $200K), you should darned near expect an offer from an FHA or VA buyer.
As well, as a property seller, if you are in a position to enable it, you should absolutely announce that you would consent to seller financing. Seller financing, in this market, will get the phone ringing. As more and more people are being forced from their homes via foreclosure and foreclosure avoidance (short sales/deed in lieu of trust), sellers offering seller financing are in HOT, HOT, HOT demand.
4 responses so far ↓
I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.
Aaron Wakling
Great story Steve. My computer accounted for Leap Year but my pocket PC did not which is strange because its connected to my computer.
What kind of liability does the seller maintain when offering seller financing? Is this different from an assumptionDoes the seller hae to have money to invest or at least good credit?
Steve, an interesting correlation between Starbucks and sellers. I believe some sellers are starting to come around in the Daytona Beach market, but many are still in denial. I have seen an increase in inquiries, especially with bank owned properties. The problem is that many of these properties are in really bad condition from what is essentially abandonment.
A seller who is flexible can leverage their well maintained home against the perceived bargain of the foreclosed home.
Good article.
Lynn Byrne
Most of the people I’m qualifying these days are FHA or VA. It’s weired, but I think I’m at a 50/50 ratio right now. Subprime had killed FHA and given it a “bad” name, but looks who’s talking now????
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