Whether you’re an owner of a distressed property, facing foreclosure, or you’re in a hurry to sell an inherited house, there’s no reason you shouldn’t make the best out of your situation. There are many ways to sell your house, but you should always do your homework before putting it on the market.
We have listed a couple of things you should keep in mind when choosing your sale strategy, especially if your property is located in Southern California.
You Can Avoid Realtor Commissions
Sure, a real estate agent will probably get you a buyer and save you a lot of prep work, but their average commission in Southern California is 5%, and you will certainly feel that. With companies that buy directly from you, like SleeveUp Homes, you can avoid these costs and still get a reasonable offer.
Companies like these will also spare you the closing fees, which will not be the case with a traditional sale. Plus, some traditional buyers might ask for closing cost assistance, which means more cuts to your original price. Another way to avoid commission fees and still work with an experienced realtor is by looking for a full service, flat fee realtor like CA Flat Fee.
You Should Avoid Wholesalers
Wholesalers have a bad reputation for taking advantage of people in trouble. They are basically middle-men who will resell your home to a different buyer and they will pocket the difference. In order for them to make money, they have to offer below market value for your property, and they pocket the difference.
If you don’t want to go through the traditional sales process, you should look for home buying companies that are looking to restore your property, since you’ll be selling directly to them. They will always offer a better price than a wholesaler would because you are cutting out the middleman. Visit https://www.thepropertybuyingcompany.co.uk/landers/sell-house-fast to know more.
Pay Attention to the Demographics
If your property is located in Southern California, you probably want to attract millennials. They are finally on the market buying their first house, and Southern California is the hottest real estate area among millennials.
However, their budget is still tight, and they are not very interested in restorations. This means that they want to get a house ready to move in, for as little as possible. If you’re selling a distressed property, you probably won’t get lucky targeting millennials, which leaves you with fewer options.
Empty House Insurance
If a property is vacant, it will be at higher risk of damage and may also become the target of vandals or theft. For example, a pipe might burst, causing flooding and major damage that will be expensive to repair. For these reasons, standard house insurance will not cover an empty or unoccupied property. Most house polices will have a clause stating insurance will not be valid if the home is left empty for a period of 30 days or over. Unoccupied house insurance is a specialist insurance product that covers the additional risk posed when a house is left empty for a prolonged period of time. The cover is available for 1 or 3 months and can be extended. This guide by multiquotetime explains the available options for insuring an unoccupied property or a property in probate on a short-term basis.
You Don’t Have to Deal With Repairs
The most time-consuming and expensive process of a traditional sale is repairing the house. A realtor will ask you to do that in order to pump the price up, which definitely works for them, but not necessarily for you.
Depending on the state of your house, you can end up spending so much money making the necessary repairs, that your profit will be equal to a wholesaler’s offer. Not to mention the time you need to invest.
If you’d need to make significant repairs to your home before you can sell it, your best bet may be to find a company that will buy the house as-is and does the repairs themselves.
Selling a House Takes Time
A traditional sale usually takes 4-6 weeks to close, and this is if you’re lucky. During that time, you won’t just be losing time, but also money. You would still have to pay for all the bills and taxes while your house is on the market.
If you’re in a hurry to sell, you may need to lower the asking price. This is probably not something you want, but you need to be realistic. Calculate your potential profits and expenses before you decide on how you’ll sell your house.
You Shouldn’t Avoid Showings
Showings make one of the worst parts of a traditional sale. Your house always has to be ready to welcome potential buyers, and that’s very hard to keep up with, especially if you live there with your family.
Open houses are also an option with a traditional sale, where you keep one day a week open for all potential buyers. You can try preparing your house for such days, but to get the best results you should probably get a professional to stage the house.
However, this will also cost you extra money, and you probably want to avoid that. And yet, showings and open houses are some of the most important steps in selling a house. You can avoid showings altogether, but that will seriously limit your potential buyer pool.
Pay Attention to the Moving Costs
Even if you think you’re done after selling your house, there’s a new adventure right around the corner - moving. Moving is always very stressful, but a buyer can make it even worse. Most traditional buyers will ask you to completely empty the house, but you probably don’t need most of the stuff from the old house.
It can be very costly to hire a crew for handling such a big move. This can be avoided if you sell to a restoration company. They just need your signature, and they will handle everything else. You can take or leave whatever you want and go on with your life.
A Few Takeaways
You can try to get your ideal price on your own, but it’s not at all easy. Don’t discount the time and energy you needed to invest to learn the relevant skills. And always keep in mind the financial costs of repairing and keeping the house on the market.
If you want to cut out the middleman and sell the house quickly, your best option is to contact a restoration company. These businesses are legitimate and have a much better reputation than wholesalers. The advantage is that they have the cash and they do their own work.