Creative Thinking

Getting creative just may be the answer to working out a vacation home purchase or sale in today’s economic environment. Buyers and sellers are thinking outside the box to bring deals together for win-win situations. Whether buying or selling, your success will improve if you open yourself up to broader and more creative solutions.

Consider these options:

Lease purchase: Back in the height of the seller’s market, it was rare for a property owner to consider an offer that proposed renting with an option to buy. In today’s market, this is one way to creatively bring a negotiation together. Sellers benefit by receiving income from the property and by having a commitment from the tenant to move toward purchase, and the buyer/tenant benefits by having longer period in which to gather financing while beginning to build equity in the property by having a portion of their rent applied toward the purchase. For more details about how lease purchase agreements work, click here.

Seller Financing: Owner financing was also more of a rarity in the boom markets of the early 2000’s, but more buyers are asking for it today, and more owners are accepting these offers. With the lending markets tightening their restrictions, many well-qualified borrowers are being turned away from traditional financing. Owner financing offers a win-win solution in many cases. Owners who don’t have an immediate need for the proceeds stand to make more in the end by adding interest payments to their bottom line and buyers who otherwise couldn’t get financing are able to move toward their dream of owning an investment property or second home. For more details about seller financing, click here.

Sharing a Purchase: Many experts espouse that the time is now for buyers to make a move, but due to the daily negative reports on the credit and housing markets, some buyers are being held back by fear. Consider sharing the risk with a friend by investing in a property together. When you invest in a property in Provincetown, Truro or Wellfleet, you have the opportunity to offset many of your expenses with rental income. If you are sharing the cost burden with a partner, you enjoy all the benefits, while feeling more secure with less at stake. Investing with a friend or partner is another path to realizing your dream of owning a vacation home on Cape Cod.