Hi All!
For those of you who’ve done a wrap deal…
is adding 20% to the current market value of the house a good guide to setting the sale price in a wrap deal??? and…..
is adding 1-1.5% on the mortgage interest rate standard for a wrap??Hoping some[angel] can answer this.
Kind regards,
Kirsten
ps the reason I ask is because I lost a deal and am wondering if I was too greedy.[oink]The amount you add to the price of the house is dependant on the price you paid and the exit strategy you have for your buyers. If you plan to have them refinance sooner rather than later then the sales price needs to be lower (very close to market value). As far as intrest rate goes you can charge upto a 2% or more if the funds you have for your mortgage are low but if your funds are dearer then 1-1.5% maybe more realistic.
Dave Siacci
Hi Kristen, We charge 20 – 30% @ +2% interest. A few tyre kickers have said they feel this is exhorbadant. I know wrappers charging way more. Some put on +$25,000 on each house no matter what they buy it for. We’re hoping our clients re-fin after 5 years
I had one person abuse me for the charges we added only to ring back two weeks later, tail between his legs wanting me to buy him a house.
Stick to your guns, set your charges and be flexible but always remain in the drivers seat..Hi Saicci and WallFlower…
Many thanks for your help. I now have a really good idea how to structure the deals. Just need one now….
Kind regards,
Kirsten
You must be logged in to reply to this topic. If you don't have an account, you can register here.
