I just had a thought that when everybody expects residential property market to crash there is a market for a new product - Put Options on Property (POP). That's how it should work:
You own a house worth say $300,000. You and I sign a contract. According to the contract, I grant you a POP, or the right to sell your property for a specified price (say $270,000) within a specified period (say 12 months). Exercising a POP means: you let me market and sell your propery. If it sells for less than $270,000 - I will pay you the difference, if it sells higher, I will pocket the difference (or we'll share it). I will charge you a fee to issue the POP.
It looks that products like this may become popular if offered by a respectable organisation, such as an insurance company, a large RE franchise, a large mortgage broker etc.
What do people think?
Say cheese ,
Lotana
You own a house worth say $300,000. You and I sign a contract. According to the contract, I grant you a POP, or the right to sell your property for a specified price (say $270,000) within a specified period (say 12 months). Exercising a POP means: you let me market and sell your propery. If it sells for less than $270,000 - I will pay you the difference, if it sells higher, I will pocket the difference (or we'll share it). I will charge you a fee to issue the POP.
It looks that products like this may become popular if offered by a respectable organisation, such as an insurance company, a large RE franchise, a large mortgage broker etc.
What do people think?
Say cheese ,
Lotana