Homes That Can’t Be Bought or Sold “Sunk Cost“: A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business may face, such as inventory costs or R&D expenses, because it has already happened. Sunk costs are independent of any event that may...Read More
Housing Market’s “Brussel Sprouts” Edina Realty Regional Manager Terry McDonough gave a terrific talk at City Lakes yesterday about the advantages — and potential pitfalls — of using contracts for deed in today’s housing market. In an environment of zero percent interest rates (“ZIRP”) and lots of stealth home equity (something like 2/3 of those...Read More
On the Plus Side, There’s a Lot Less Prep Once upon a time, listing presentations — essentially, a job interview for Realtors — took about an hour, and covered such things as the Realtor’s track record, credentials, marketing strategy, references, recent housing market activity, etc. Now? After exchanging social pleasantries and taking a quick house...Read More
Why Aren’t Contracts for Deed More Popular? With interest rates in the toilet and the stock market having already almost doubled from its 2009 low, you’d think that there’d be more takers for contracts for deed. An alternative to bank-financed mortgages, they allow Buyers with tarnished (or too-brief) credit histories to buy, and Sellers to sell...Read More
