November 24, 2020
How to sell a house fast in a slow market ? Life can throw you some curveballs that shake up your plans and force you to take actions you aren’t prepared to handle. One of those challenges could be having to sell your house fast for cash in a pinch. Although it could be for good reasons such as a new job offer or moving in with a partner it could also be because of upheaval such as impending bankruptcy, foreclosure, the unexpected death of a loved one or divorce. When the time comes to sell, there are many options to get things moving more quickly, so you can reduce stress and get on with the next stage of your life.
Most people will speak to a real estate agent as the first step to sell a house fast for cash. This makes sense in most cases, as they provide the expertise required to price your home right, list it, prepare it for sale, show the home and negotiate offers. However, it is not necessarily the fastest or even one of the fastest ways to go.
While an agent will probably get you the best price, it won’t be a fast sale and they also take 5 to 6% of your profits in commission. Once the listing finally hits the MLS, even if you get an offer right away, there is a lot of paperwork involved when you choose to list with an agent. The offer alone can slow things down as most buyers will request contingencies that can not only delay the closing but also open the potential for the sale to fall through.
There are some benefits to listing with an agent including:
So, in a nutshell, while working with an agent is not fast, it certainly is the safer option.
How to sell a house in a bad market ? or how to sell a house in a bad market ? Selling your home for cash is another option if time is of the essence. Local cash investors come in many different shapes and sizes, but all have the same goals: Acquire properties and sell them quickly for a profit. Some are focused on homes in good condition, while others are happy to buy fixer-uppers to tear down or upgrade. They remain competitive with their offers, made even more attractive as they are strictly cash.
The benefits to local cash investors are:
The key to working with cash investors is finding the right one for your needs. For example, if your home is in excellent condition, you can benefit from a company that specializes in buying and selling high-quality homes (this does not mean luxury, just homes in good condition). Other companies might specialize in fixer-uppers, making them an excellent choice if your home lacks curb appeal, has a leaky roof or outdated décor.
There is a growing number of “iBuyers” entering the real estate market. These instant homebuyers are willing and able to make quick home sales for very fair prices. This is an exciting option, as everything is done online.
The benefits to iBuyers are pretty much the same as working with cash investors, with the main difference being the transaction is managed mostly, or entirely online. Although these companies save you time and also help find the best cash offer there are some cons. You have to watch for things such as administrative fees that can take as much as 10% of your profits, as well as fees they might charge to cover repairs. In these cases, although the sale might be faster, the share of the home equity you get can be reduced quite a bit.
This is the choice many sellers make because they want to save the 5-6% that goes towards real estate agent commission. The problem is, this is rarely a good choice, even in markets where houses are selling like hotcakes. If you need a fast sale, the last thing you want to do is try to sell your home yourself. Why? There’s quite a list of cons including:
In general, this is just a bad idea. Your lack of knowledge, your inability to network with agents looking for listings and dealing with buyers’ agents not overly concerned with your need to sell quickly all point to things taking longer, costing more and getting you less money for your home.
This is actually not a fast sale option at all, but we want to list it so you understand what it means. Many people think the term “short” refers to it taking a shorter amount of time to sell. However, the short refers strictly to the short on the sale price as your lender is working to sell your home for less than you owe. This option only makes sense if you are in dire straits and need to sell your house to avoid foreclosure.
Your best bet is to be thorough and research your options before proceeding. You can make a shortlist of companies or individuals you wish to speak to about what they offer. Then begin your research considering the following:
Once you have all your information, you will be able to decide which option is right for you.
As you can see, not all cash buyers are the same. Read some of our real reviews to learn why we are the perfect option when you need to sell your house fast for cash.