B, Home Seller in Des Plaines, IL

We like to sell our house and offer our used car its a convertible, is this a good idea?

Asked by B, Des Plaines, IL Mon Jun 2, 2008

Chrysler Sebring

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Sam Katzenbe…, , Phoenix, AZ
Mon Jun 2, 2008
If this is a car that you and the rest of you family are not going to use and it will help sell the home, it is a great idea. That is very solid out of the box thinking. The main thing is to sell the home, figure out what the blue book price is and work it into the home price.
Web Reference:  http://www.prg-az.com
1 vote
Torrey Lewis, , Chicago, IL
Tue Jun 3, 2008
What we have been seeing in the current market is that most buyers will not bite on a promotion such as this. It is great for getting attention, but in the end, the buyers that we are working with will try to negotiate "out" the car, meaning that if you are willing to take $300,000 for the house, and throw in a car worth $8500, then why doesn't the price adjust to $291.500, and then leave the car out?

As others have mentioned, it is also difficult for lenders and appraisers to wrap their heads around such concepts, and it's generally best if any mention of the car is left out of the contracts (please consult with your attorney first).

If you can sell the car before you list the home, you could use the cash from the sale to induce buyers in other ways, such as paying closing costs, assessment fees (if there are any), future property taxes, etc. Make sure to check with your attorney to ensure that anything you offer will be legal and "above-board", and also double check with the prospective buyer's lender to make sure there are no restrictions on the types of credits you are offering.

Hope this helps! Good luck!
1 vote
Mwass, , Chicago, IL
Tue Jun 3, 2008
offers like this are great "attention getters" but there are a couple of potential pitfalls.

first, mortgagee lenders will only lend money against property that they can securely place a lien against (and for which they can transfer the loan). they will not want to lend money towards "buying" the car. i see lenders demand that such items be removed from contracts all the time.

second, if you are giving the car away, you may incur gift tax liabilities (then again, i am not a tax preparer and you MUST NOT take anything here as tax advice. The IRS really frowns on this sort of thing)

i'd review this with your legal counsel for a more formal opinion before you proceed.
1 vote
Greg Zaccagni, , Illinois
Mon Jun 2, 2008
Creative selling strategies are a great idea but please remember that the appraised value will only reflect the home you are selling. If the buyers are using low/no money down, you may not be able to profit from the inclusion of the convertible. Here is a blog on seller buydows which home builders use all the time to help sell properties.

Web Reference:  http://www.GregZaccagni.com
1 vote
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