Selling a property can prove to be a challenge. Selling a distressed property, however, is a whole other level of uncertainty. How do you go about the process? Should you sell it as is, or would it be better to get some repairs done?
What repairs would you even choose when there seem to be so many? Which repairs are necessary to get buyer financing? These must be the concerns you are facing right about now if you are looking to sell a distressed property. Now, you can relax because this process does not need to be stressful at all.
Selling distressed property can be time-consuming, but we have information for you that will not only help you sell fast but at a fair price as well. In fact, you can sell your property very fast, depending on who you decide to sell it to.
What Is a Distressed Property?
A distressed property is one that a homeowner has lost the ability to keep up with the financial obligations of ownership. If, for instance, you default in your payments or can no longer keep up the property to a safety standard, it’s considered as distressed. Other issues include foreclosure, tax liens, bankruptcy, divorce, and poor conditions.
What Should You Know About Distressed Homes
There are several things you must know about a distressed property, given that you don’t have much time and need to make a distressed sale. If you are facing foreclosure, then you need to sell your house quite fast.
1. You May Have To Fix It to Get an Appraisal
Some distressed homes don’t meet the criteria for an appraisal due to certain conditions such as water damage or exposed floorboards. Fixing this kind of house will undoubtedly put a hole in your pocket, and it may not fetch enough to cover those expenses when you sell it.
If you compare the cost versus the return of remodeling, you’ll discover that it may not be worth fixing. Lowering the price of the house is a much better option.
2. Selling To Cash Buyers Is a Good Idea
The thing about distressed homes is that they can’t qualify for mortgages. Unless you are willing to fix the house before selling it, what you need is a cash buyer. One of the best things about this is that we buy houses for cash, and we’ll be more than glad to take it off you.
Dealing with people whose funds are tied up in investments is a drawback since you are looking to make a distressed sale. This is one of the reasons why we buy distressed properties in Florida and make it easy for people who need fast sales.
Cash home buyers are an excellent choice because apart from buying in cash, and fast, they also buy houses in any condition. As long as you deal with a reputable cash home buyer, you’ll receive a no-obligation offer. The money can save you on medical bills, legal bills, foreclosure, or debt collectors if you happen to have such problems.
3. Knowing the Value of Your Home Is Essential
You’d be surprised at the number of homeowners who get into the real estate market without knowing the actual value of their home. Not knowing how much its worth may be detrimental to your sale, even if it’s distressed. Understand the local market and compare prices with similar sized houses.
Look for properties with similar amenities to yours, check out their prices and adjust your price accordingly. If it’s not too distressed, then you can have an appraiser take a look at it, and give you a valuation.
4. You Must Verify Your Buyers
Given that you are likely to sell your distressed property to people who will buy the house out of pocket, it’s advisable to verify if they’ll be able to pay the agreed amount on the agreed date. Don’t feel shy about asking for a financial verification.
If you feel that you can work out a land contract, then ask for proof of income to ensure that they’ll be able to make ongoing payments as agreed. Don’t appear desperate to sell the house because buyers will take advantage of that to give you low-ball offers.
If you can, stand firm and wait until you get a reasonable offer depending on the value of your home. You also need awesome negotiating skills if you are going to sell at a reasonable price.
5. You Need to Disclose Everything to the Buyer
Regardless of whether you find a buyer or choose to sell to cash buyers, you need to be upfront about the property, irrespective of the situation. The problem with hiding property defects is that you may face a lawsuit in the future. Besides, once the buyer discovers the issues before closing the deal, they’ll either lower the price or back out.
6. Paying Agent Commissions Is Not Necessary
You don’t need to pay agent commissions while selling distressed properties because listing your home in Florida will be expensive, and the chances of actually closing a sale will be slim. What you need to do is find direct buyers so you can have a closing date much faster and avoid expensive agent commissions that will eat up the little profit you’ll make from the property.
Besides, you probably don’t have the luxury of time, and this can really delay the process. If you don’t occupy the property and you take too long to sell it, you may find squatters taking advantage, and you’ll be responsible for any damages they create.
7. Have Everything in Writing
Get all contracts in order, which may not be easy if you’re selling on your own. All the paperwork has to be done right, you need to provide disclosure documents and ensure that everything is done legally. This gets a whole lot easier if you decide to work with a cash buyer because they take care of everything and give you cash right away.
Ready to Sell Your Distressed Home?
Selling a distressed property can be easier than you think, especially if you can find a good deal with a cash buyer. The whole process will be over fast, and the property will be off your hands in a matter of weeks. If you need to sell that property as soon as possible, give us a call, and we’ll give you an offer you can’t refuse.