Things come up in life and sometimes it makes sense to cash in on an expensive asset – your house. If you need a quick house sale, you probably don’t want dozens of real estate agents and clients parading through your home for weeks or months, trying to negotiate a good deal. A retail listing through a real estate agent will attract retail buyers, who usually need their mortgage companies to do an appraisal and then they’ll negotiate some needed repairs to make the home habitable per their standards. This takes time and money, not to mention paying a commission. A retail quick house sale is possible, but whether or not it’s probable depends on your home and market conditions.
This article isn’t written by a lawyer and isn’t legal advice, but is intended for presenting options available in the marketplace to sell your house.
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Whether you’re facing bankruptcy, foreclosure, or financial distress in general, there are options to sell your house quickly.
Auctions
Auctions are becoming more popular, and buyers typically close faster than a retail sale, However, you set the minimum price and then wait to see if the minimum is met or not. THere is usually a contract and you need to wait for the auction to conclude and then see the result. Auctions usually result in a sales price lower than retail. You’ll need equity in your home for this to work (your mortgage balance should be at least 20% lower than market value of your house).
Auction websites such as auction.com are different from sheriff sales often performed as auctions, after a home is foreclosed on. Auctions can be a way to get a quick house sale.
Cash Sale
If you know anyone in real estate or that invests in real estate – property managers, landlords, even contractors – ask them if they know anyone interested in a private cash sale. This could be the fastest & cheapest route, since you’ll know the person already and can avoid paying a real estate commission. It’s difficult to tell someone you’re facing bankruptcy, foreclosure or financial distress, but if you’re comfortable telling people, it can get a faster sale, albeit with a lower price.
Private Sale – Other Option
If you don’t know anyone with cash to buy your home, contact us and we’ll see if there’s a fit. If we don’t buy it, we’ll talk with our network of cash buyers who might. If all else fails, we’ll list your house for free.
Retail Sale
If you have some time and want the maximum price, a retail sale is the way to go. To maximize price, you’ll need to do some work to prepare, such as cleaning up, painting, and performing repairs. Retail buyers will want to see the home before purchasing, so you’ll need to make the home available for showings. Retail sales are often not quick house sales; mortgage companies insured by FHA will have strict requirements such as no flaking paint if your home was built prior to 1978 (when lead paint was banned), functional hot water heater, clear exit paths including openable windows, etc.
For a slightly faster retail sale, your agent could put the word out you’re a “motivated seller” – this is a gentle way of letting other agents know about some kind of financial distress or strong personal motivation to sell, aside from bankruptcy or foreclosure.
Other Considerations
There are costs involved in any sale. You may have to pay transfer taxes or other fees, but these can be negotiated in a quick house sale. Those costs are negotiable, and you can ask the buyer to pay all closing costs and see if they’ll agree. If you aren’t using a real estate agent, the buyer and you should work with a title company, lawyer or other closing agent to process the sale.
If you owe more money on your mortgage than your house is currently worth, working with your lender and a lawyer might be your only options. An experienced agent could also help with a short sale.