How To Sell Your Distressed Property Without Losing Any Money
Most homeowners need to sell a distressed property due to financial problems. Whether facing foreclosure, a tax lien, or going through a divorce, homeowners often want to sell a house without losing money quickly.
Depending on the market and your location, it can take 2-3 months to find a buyer willing to pay your asking price. If you need the funds from the sale to pay your taxes or stave off foreclosure, two months might be too long to wait.
Like Meli, a cash home buyer is an excellent option for homeowners looking to sell in Central Florida without losing any money.
What Makes a Property Distressed?
Several situations can lead to a distressed home. Disrepair or lack of maintenance are the primary causes, but distress can also refer to households with financial issues. Failure to pay your mortgage or taxes can result in foreclosure, an involuntary tax lien, or a judgment against your house.
Divorce, a speedy relocation, or problems in probate court can also result in a quick cash sale of a distressed house.
Depending on the reason for your sale, there are several things you can do to increase your asking price and sell without losing money.
How to Sell a House Without Losing Money
The first thing to determine is how soon you need to sell your property. In Florida, you have 90 days after receipt of a Notice of Amount Due. After a careful examination of your financial situation, you may decide you need to sell your home. The sooner you decide to sell, the more time you have to prepare your home and find a buyer.
Situations like divorces and the death of an owner might allow for some more leeway in your timeline. If there is a possibility you sell your house on the open real estate market, there are a few things you can do to get a high offer from a buyer who invests in distressed homes.
- Fix Structural Problems
If you can afford it, fixing major structural problems can significantly affect your asking price. Particularly if you are selling the home due to a divorce or a move, find a quick-working construction company. Before agreeing to any work, make sure the cost is worth it, and you’ll earn some return on your investment.
Large issues like foundation repairs, significant electrical or plumbing work, and roofing may end up costing you more than is within your budget. Under these circumstances, it is often best to sell your home as-is. Selling your house as-is to an investor minimizes the stress of selling your home. Plus, it eliminates the need for major repairs.
- Clean Up Clutter
Most buyers need to see your house in person before purchasing. Before your walkthrough appointment, clear away clutter and thoroughly clean every room. A buyer will be more interested in a clean, uncluttered house, which might influence their offer.
Don’t forget to declutter your yard and trim overhanging branches and hedges. Small, simple yard maintenance tasks often cost very little and can do a lot to improve the curb appeal.
- Self-Appraise Your Home
Do your research before setting an asking price. Look online and see what similar houses in your area have sold for. You can get an average estimate by multiplying your home’s square footage by the price per square foot of similar homes in the area.
For example, if your home is 2,000 sq. ft. and the average cost per square foot of other houses nearby is $150, then a reasonable home estimate is $300,000. You can adjust the value according to the condition of your home.
- Vet Your Buyers
Even if your buyers seem like friendly people, you should request to see their financial records. You don’t want to waste time hammering out a deal and signing paperwork, only for the buyer to back out at the last minute or not have the cash available.
Working with a cash home buyer lowers the risk since these companies do not need to apply for a mortgage, and they often work with a network of experienced investors. However, you should still check the companies’ financials before coming to an agreement. - Honesty
Honesty is the best policy. Be upfront with your buyer about any tax liens, judgments, or structural issues. A buyer dropping out at the last minute due to previously unrevealed issues means you will lose valuable time.
If a buyer discovers issues with your home that weren’t previously disclosed before settling, you may also be liable for litigation for fraud, costing you a substantial amount in legal fees.
Sell To a Cash Home Buyer
Selling a distressed home on the open market is time-consuming, complex, and you’re not guaranteed a quick sale. If your home is in disrepair or considered unsafe, you may be unable to obtain an appraisal, limiting your selling options. Real estate agents also require commissions, which can cut into the profits from your home’s sale.
A cash home buyer lets you bypass the complicated listing procedure by managing all the necessary documentation and connecting with a network of investors, lawyers, and real estate agents to help you sell your distressed home as quickly as possible.
Many cash home buyers prefer to buy a distressed home as-is. This means that you don’t need to perform any costly repairs or renovations. At Meli, there are no fees, commissions, or closing costs to pay, and we will perform a no-obligation walk-through of your home to help you make an informed decision about selling your property.
Finding and Vetting a Buyer
While most cash home buyers are trustworthy investors with an interest in flipping properties, some disreputable companies may not offer you a fair price for what your house is worth. Before selling your home to a cash buyer, it’s vital to find an honest company to ensure you are protected. Here are a few tips for finding and vetting a cash home buyer.
- Check online reviews on Google or the Better Business Bureau for positive client experiences.
- Examine their real estate portfolio and check country records for proof of their purchases.
- Ask the cash buyer to provide proof of funds with a bank statement.
- Explore their website and social media accounts for photos of previous projects.
- Read testimonials on their website.
Choose Meli Homes to Sell Your Home Fast
Understanding how to sell your house without losing money is vital to protect your interest and streamline your home’s sale. Selling to a cash home buyer takes the stress out of selling your distressed home. And, it ensures you receive a fair price without the need for costly repairs.
At Meli, we’ll schedule a walk-through within 24 hours, and can close on your home in 30 days or less. We are a reliable, trustworthy company with years of experience dealing with challenging housing situations. Call us at (407) 338-4183 to get started.
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.
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