Do you need home selling tips?
The decision was made to sell your home. What to do, what to do, what to do???? Maybe you have a job transfer, you and the family have outgrown the size of your home, you have saved for your dream home, you inherited your grandparent’s house but not interested in living there. The list goes on and on. Homeowners might feel the best option is to contact their Real Estate Agent, price, stage, show, sell, done. BUT…. is that the BEST way to sell? Here are 6 options with home selling tips.
Option 1: Sell AS IS to CASH BUYER
- Fast closing, could be in as little as 5 days! Typically, the Buyer will close on YOUR timeline (BIG +!)
- Possibility of NO inspections! Is the roof tattered, therefore cannot be sold through the MLS? A cash buyer has the tendency to purchase AS IS without closing delays, such as an inspection (BIG +!)
- Cash buyer is just that, with cash! No financing from a bank (BIG +!)
- NO Real Estate Agent commissions (BIG +!)
- Use a local Real Estate Attorney for paperwork and closing, which can be a huge savings in comparison to a commission (BIG +!)
- Buyer and Seller communicate directly! Eliminate the “middle man” (BIG +!)
- Buyer and Seller may add in contingencies such as buyer includes contents of property so that seller has less to pack (BIG +!)
Even with all the BIG +!, there are drawbacks. A cash buyer may have lower offers due to covering more expenses with repairs to a property that is in AS IS condition.
Option 2: Keep house for a RENTAL PROPERTY
- CASH FLOW! (BIG +!)
- Pay off mortgage quickly with profits from rental income (BIG +!)
- Equity builds quickly (BIG +!)
- Tax deductions such as: equipment upgrades, mileage to/from property, etc. (BIG +!)
Rental properties also have drawbacks. Tenants may not pay rent on time which may lead to a costly eviction process.
Option 3: Homeowner does UPGRADES THEN SELLS
- Increase property value for more seller profit (BIG +!)
- Retail buyers like “move-in ready” properties (BIG +!)
- Possibility of multiple offers=possible bidding war=more profit (BIG +!)
Again, there are potential drawbacks to the upgrade process that may include but not limited to: the time/labor/stress of projects/juggling the folks working on the upgrades while the homeowner may not be at the property all the time.
Option 4: Real Estate Agent to represent absentee Homeowner
- Ideal for Homeowner who lives away from the for-sale property (BIG +!)
- Less stress of managing property (BIG +!)
- No need to prepare for showings Ex: cleaning property, leaving, worry about valuables out for people to see (BIG +!)
There are drawbacks to this option as well. For example, the closing time may be longer to get all documentation signed by all parties, making sure everyone is on board, perhaps the seller would have to travel to the closing.
Option 5: For Sale By Owner (FSBO)
- Homeowner is in control without an agent (BIG +!)
- Close at Real Estate Attorney office, which is a cost savings in comparison to paying a commission to the agent (BIG +!)
- Buyer and seller communicate directly (BIG +!)
Drawbacks are many in this scenario. From the time the FSBO is made known to the end buyer, this could be a lengthier timeline than if an agent were to represent the property. The homeowner may not have the full knowledge of how to sell the property which could be a key factor in the longevity of the sale.
Option 6: Contract for Deed/Subject To Financing/Rent to Own
- Credit gone downward? The buyer takes over the mortgage without changing your name, the payments are on time, the homeowner’s credit score goes up! (BIG +!)
- Cash flow (BIG +!)
- Buyer may have a large down payment to Seller. This could assist in paying off mortgage faster. Any funds coming in after are profit (BIG +!)
An example of one drawback may be: What if the buyer defaults on the payment? This reflects on the seller. The mortgage is still required to be paid which is now up to the seller.
There are pluses and drawbacks to everything, but it’s ultimately up to YOU to decide the best option for your situation. Whatever scenario you choose, good luck with these home selling tips! Reel Property Solutions, LLC has a team of key players to assist with any situation. We can help you answer questions about home selling tips!
If you want to sell your home in AS IS condition, contact us today at 507-218-8788 or info@reelpropertysolutionsllc.com.
