Stonegate Realtor Book

A LOOK AT WHAT HIP CAN DO FOR YOU
Let’s illustrate what HIP can do for a Listing Agent:
• Increase sales prices, resulting in growth of sales commissions
• Reduce overall days to sell (DOM)
Consider an example of how HIP can help a Listing Agent facing the
daunting task of listing a home that isn’t market-ready. Again, this is
an actual transaction closed by Stonegate’s HIP Department. In this
case, the seller opted to list the home in its current condition, and the
Listing Agent cited that the home was “perfect for investor/rehab or
a buyer with a touch for remodeling and landscaping.” The home was
listed on the market for 50 days at $130,000, temporarily removed
from the market and re-listed 11 days later at $128,000. It sold for
$126,500 after 74 DOM.
Sold ‘As-Is’ Sold after
rehab
Difference
Sales Price $126,500 $153,000 $26,500
After improved value n/a $153,000
Existing debt $ - $ -
Renovation cost $ - $9,614
Realtor commission $7,590 $9,180 $1,590
Seller concessions $2,800 $2,800
Closing costs* $1,176 $3,000
Misc. (Property taxes,
etc.)
$92 $92
Seller’s profit $114,842 $128,314 $13,472
Our buyer benefitted the most in this transaction, gaining built-in
equity that the seller left on the table.
Now that we’ve shown you examples of how HIP can benefit both you
and your clients, let’s look at the different loan programs available and
discuss the types of improvements that can be made.
how it works for you
The home was in fair condition, with
minimal repairs required (per the
appraisal). After installing a new
high efficiency indoor comfort system
and replacing some carpet, our
home buyer invested only $9,614
using his new HIP loan. The home,
in its subject-to condition, appraised
for $153,000. In many instances,
home buyers are wary of purchasing
homes requiring repairs because they
don’t know how much it will cost to
make those repairs. As you can see,
sometimes a small investment can
go a long way. Imagine if this seller
had chosen to make repairs prior to
listing the home. This chart on the
left shows how this transaction would
have looked a lot different.
______________________________
*Closing costs on the ‘Sold after
rehab’ option have been modified
to indicate two sets of closing costs
(i.e. refinance, then sale).
get HIP with Stonegate Mortgage stonegatemtg.com/hip 855 396 0228 4