Here’s What to Know When Selling a Distressed Property
Many of us find ourselves in a situation where we need to sell a distressed property as fast as possible, whether it’s to release some funds or take some unwanted responsibility off our plates. Buying and selling a property can be a stressful experience, which is why there are companies that buy distressed properties. Our guide to things you should consider when you’re selling your distressed property will help you achieve your sale.
What is Considered a Distressed Property?
When you hear the term “distressed property,” you may think it refers to the physical condition of a building. While physically neglected homes are one type of distressed property, the term also refers to properties caught up in legal disputes or whose owners have financial difficulties. Some of the principal reasons a property might become distressed are:
- Properties can be left in disrepair due to natural disasters or neglected because of the owner’s economic problems. If the homeowner cannot pay for repairs, they may need to sell the property quickly.
- The homeowner has died, and the property is stuck in probate.
- Due to financial instability, the homeowner cannot pay their mortgage and may wish to sell quickly to avoid foreclosure.
- If an owner has been fined because the property is not to code, they may need to sell it as a distressed property.
- If a property market is slow and a homeowner needs to move quickly, they may decide to sell their house as a distressed property.
The Benefits of Selling to Companies That Buy Distressed Properties
Buying and selling homes is an emotional experience. It can get even more fraught when people are forced to sell under unexpected circumstances. Some homeowners find the idea of selling their house as a distressed property sad or shameful, but that’s not true. There are considerable benefits to selling a property in this way, for instance:
- Speed and simplicity: Buying and selling property is often one of the most stressful experiences of people’s lives, and sometimes that experience takes months or even years. Selling your distressed property as-is to companies that buy distressed properties is a fast, straightforward alternative.
- No need to renovate: If you are the owner of a property that’s in poor condition, for example, if you’ve inherited a relative’s home, you may not have the resources to renovate. Selling it as a distressed property allows you to avoid this mammoth task. Plus, you may walk away with cash in your pocket.
- Avoid foreclosure: If you find yourself unable to make your mortgage payments, the bank may repossess your home. Selling your distressed property quickly can ensure you avoid this. This may also give you money to pay off some debts and protect your credit rating.
Tips for Getting the Best Sale
Every homeowner that’s selling their property wants to sell for a good price to honest buyers. Depending on the housing market, that can be a challenging task. Following these simple tips can help you get the sale you want.
- Make some improvements: One of the best ways to achieve a higher offer on your home is to do some renovation. Depending on your time and budget, you may fix large structural issues or merely give your house a face-lift with a fresh coat of paint. Balance how much value the work will add to your property with how much money and time it will take.
- Present it well: You’re much more likely to attract distressed property buyers if your home is clean, uncluttered, and inviting. If the outside or inside of your property is messy and unkempt, potential buyers will be left with a poor impression. Staging your home well is vital.
- Set a fair asking price: Do your research and don’t ask for more than the property is worth.
- Honesty is the best policy: Be upfront with your buyers about any issues with the house, whether they are structural, financial, or legal. This prevents buyers from dropping out at the last minute or taking legal action against you in the future.
- Keep thorough written records: Remember verbal agreements aren’t binding and are challenging to prove in court.
For more tips on preparing your home for a sale, read Our top 5 strategies to help you sell your distressed house.
How to Sell a Distressed Property
When it comes to selling a distressed property, you have three choices: sell with a real estate agent, list it yourself, or work with a cash home buyer.
Real estate agents are most people’s first port of call when selling a home, and that’s understandable as it comes with a lot of benefits. Realtors have lots of experience and come with many contacts of potential buyers. They do most of the work for you, from advertising to organizing open houses. However, the housing market is fickle, and it can take months to sell in this way. Additionally, you will have to pay your agent a commission fee.
Selling your property yourself avoids real estate agent fees, and many homeowners like knowing that they are in charge of how, when, and to whom they sell. However, this method involves a tremendous amount of work. To do it successfully, you will need a lot of time and knowledge about your state’s real estate laws.
If you want to avoid the stress of listing your own property, avoid commission fees, and achieve a fast sale, selling to a cash home buyer could be the right choice for you. Companies that buy distressed properties, such as Meli, can often complete the sale, buying in cash, within just 30 days. They will buy your property as-is, so there’s no need to try and convince them with house selling tactics. It’s a simple and effective method.
Companies That Buy Distressed Properties
If you decide that selling your property in Central Florida as-is is the best solution for you, go to Meli. Just as the name suggests, the process is surprisingly simple. You could close on your house within 30 days of initial contact. We offer a fair price, handle all the fees, and can be flexible with your moving-out date.
For more information about selling a distressed property, contact Meli Homes today at (407) 338-4183.
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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