January 2020 | Meli Homes : Meli Homes

3 Strategies to Sell Your Home Fast When Facing Foreclosure

Posted on January 24, 2020August 6, 2021 by Evan Shelley

Selling a distressed property can be intimidating; you want to sell your home fast to avoid a foreclosure. This is especially true when you want to avoid hiring a professional real estate agent. However, there are strategies you can use that can help you sell your home before it is foreclosed on.

Price Your Home Strategically

One of the best ways to sell your distressed property is by pricing it right. Avoid listing your home above its market value if you need to sell it fast. You want to get the best possible price, but you can’t forget you’re working against the clock when you’re selling your home in pre-foreclosure. Even if you do decide to list for your asking price, you will probably have to compromise on your asking price as you get closer to your home’s foreclosure.

Most potential home buyers will hire a well-informed real estate expert to represent them in the home buying process. Their agent can easily find them a better home at a similar price. If you underprice your property below market value, it’s more likely to attract buyers and you’ll be able to sell your property quicker.

Setting an unrealistic price can possibly lead you to losing your home entirely if you can’t find a buyer. It’s important to keep in mind that if your home is foreclosed upon, you won’t receive any compensation and your credit score will likely take a huge hit. It’s likely better for you to sell your home for less than you’d prefer than lose everything to foreclosure.

Plan a Clear Marketing Strategy

Taking time to devise a strategic selling plan with an effective marketing strategy will help you in the long run. Reaching out to a large number of potential buyers on your own is challenging and takes time. You can instead work with a real estate agent who will market your home to a larger pool of potential buyers. Choose a realtor who has strong knowledge of your neighborhood and a robust network of buyers and other agents.

If you want to sell your home on your own, make sure to learn as much as you can about your housing market, analyze the trends, and consider getting assistance from a lawyer. Selling a distressed property on your own is far different from selling a home through a realtor. You can try mailing postcards to neighboring houses to let them know you’re selling to gauge interest.

Give your Yard, Kitchen, and Bathroom a Facelift

No one wants to move into a home that requires a lot of work. With that in mind, it’s better to spruce up your home to draw in potential homebuyers. Plan to revamp your home interior, but remember that the outside of your home is the first thing buyers see. Make a good first impression with potential buyers and renovate your home’s exterior.

Improve your home’s curb appeal by cleaning up clutter, manicuring your lawn, installing lighting, setting up a nice patio through home staging, and adding some fresh, green plants. When it comes to the interior, your kitchen and the bathrooms will draw lots of attention.

You don’t need to spend a lot of money renovating your home when you sell distressed. Even a deep clean can do wonders. If you have leaking faucets, broken shower, or clogged pipes, try to fix them and work on cost-effective cosmetic touches. These improvements do not consume much time and transform the entire aesthetics of your home. If an investor is buying your home, they are likely to overlook these problems as they will not be looking to move into your home, and instead will fix it up to sell to a home buyer.

Selling Your Home in Pre-Foreclosure Isn’t Always Easy

Time is of the essence when your home is in pre-foreclosure. The timing can vary, but finding a buyer who is willing to pay you what you want for your home isn’t always possible. There are ways you can manage to sell your home, either by doing it yourself or working with a realtor, but selling through traditional channels takes time, which isn’t a luxury most homes in the foreclosure process have.

Simply put, if you need to sell your property fast with the least hassle possible, it may be in your best interest to sell to a reputable distressed homebuyer. Meli specializes in buying distressed properties, including homes in foreclosure, even if they have other issues tied to them like excessive damage, murky titles, and more.

If you have any additional questions or you’re having trouble selling your distressed home, please get in touch with us using our contact form, or by calling us at (407) 305-5008.

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 decisions.

4 Ways to Help Buyers Find Your Distressed Property

Posted on January 16, 2020August 6, 2021 by Evan Shelley

Selling distressed is different than selling through traditional realty channels. Distressed properties often have a few telltale signs. These can help potential homebuyers identify whether a property is distressed or not.

Common traits of distressed homes include:

Notices posted on the windows and doors.
The home’s outside appearance is run-down.
Its appearance differs from neighboring homes.
The yard is overgrown and unkempt.
There are few signs of a resident, such as piled up mail and dark windows at night.

Your home may be easier for potential homebuyers to identify if it exhibits any of these signs, but it’s better to reach potential buyers instead of waiting for them to find you.

Here are some ways you can use to market your property:

Add your home on a Multiple Listing Service (MLS)
Send ad postcards to realtors
Ask your friends and family to give referrals
Get help from a professional, such as a realtor

Selling a distressed property can take a long time. If you’re unable to wait to find a buyer, consider selling your property to a distressed home buyer like Meli. We’re Florida’s trusted distressed home buyer, and will work hard to purchase your distressed home should we both determine we’re a good fit for one another.

If you have any additional questions or you’re having trouble selling your distressed home, please get in touch with us using our contact form, or by calling us at (407) 305-5008.

Is it Better to Sell a House As-Is or Fix it Up and Then Sell It?

Posted on January 16, 2020August 6, 2021 by Evan Shelley

The process of selling a house as-is can be pretty simple. There are various options for your property depending on its current condition. You can list it with a realtor, sell to an iBuyer, or sell to an investor/homebuyer.

If Your Home is Distressed:

Assuming the property is in distressed condition with excessive repairs, listing the property may not make the most sense. The typical homebuyer is looking for a move-in ready home, not an investment property.

If you choose to sell to a realtor when your home isn’t in the best condition, you’ll likely be selling the property to an investor and paying a commission to the realtor. You can find distressed homebuyers like Meli yourself by searching online and looking over reviews.

If Your Home is in Good Condition:

iBuyers like Opendoor and Offerpad can be a fantastic option for a seller if the property is in decent condition and only needs small repairs or has cosmetic issues. If the property has excessive repairs, typically iBuyers will not purchase the property.

When selling to an investor or homebuyer, there are a few things to keep in mind:

Make sure the buyer is reputable. Check online for reviews to see if the company is credible.
Ensure the homebuyer is working in your best interest. Sometimes homebuyers will tell you whatever they think you need to hear to buy the property.
Any agreements made need to be in the contract. Every contract will have an “Additional Items” section. Add anything you see fit in this section. No agreements should be made on a handshake.

If you find a company you feel comfortable working with on your distressed property, this will be the best option in terms of time saved. The reputable company will take care of the situation and give you all your options, with you doing little to no work. This is the value added by a distressed home buyer.

Fixing It Up Yourself

If you have experience in the construction and rehab of residential properties and the time to manage the project, it may be in your best interest to repair the home yourself. You can save money by doing and managing the work yourself before listing it. This will be the best way to get the full value out of the home.

The only downfall of this option is the time that it takes to get the property rehabbed, putting it on the market, and getting it sold. It can take a few months depending on the pace of construction and your dedication to the project.

Simply put, if you are needing to sell your property fast with the least hassle possible, it may be in your best interest to sell to a reputable distressed homebuyer. If you are in no rush to sell the property and have experience in residential construction, you will likely get the most value by fixing the property up yourself and listing it.

If you have any additional questions or you’re having trouble selling your distressed home, please get in touch with us using our contact form, or by calling us at (407) 305-5008.

It’s Okay to Compromise on Your Pricing Strategy

Posted on January 3, 2020October 25, 2021 by Evan Shelley

If you priced your distressed home above market value, you’re unlikely to have many showings. Homebuyers today are usually much more aware of market conditions, especially in the distressed housing market. Oftentimes, they’ll hire real estate experts to represent them in their home buying journey. Despite what more people think, it’s okay to compromise on your pricing strategy.

If you do decide to set a higher price on your home, you’ll need a strategic plan for cutting your losses. Be aware that your property will most likely be up on the market for longer than it would at a lower price point. It’s in your best interest to set a realistic price for your distressed property to sell it fast. Here are some smart pricing strategies you can adopt:

Check Home Value Estimates Online

When you need to set a price for your distressed property, automated valuation models (AVMs) can be a great tool to use. The AVMs assess the details of your property and real estate market data, then run this information through an algorithm to give you your home’s approximate value. The details factored into your home’s value usually include location, square footage, number of beds and baths, basic features, and more.

Not that AVMs are not the most foolproof way to estimate your home’s value, as their estimates are based on limited data. A home appraisal will likely alter your home’s value based on factors like upgrades you’ve made to the house, damage, changes to your neighborhood, and more.

Set your Home Price based on Comparable Sales Analysis

Before setting a price for your home, research homes that have sold or are currently for sale in your neighborhood. Depending on several factors, property values vary in every area. You can rely on comparable sales (aka comps) to set the best price for your distressed home. Look at recently sold properties that are similar to yours in condition, size, and location. When you get different price listings of homes, add or subtract the value of your home based on unique features, positioning, and upgrades.

If you’re working with a real estate agent, consult with them about comparable sales in your area. They’ll have the knowledge and resources to help you price your home accordingly.

Undervaluing your Home can be a Great Strategy

Setting your price below the market value may sound strange, especially when you want to get the most for your home. However, there is a time and place for this tactic, such as when you’re in a buyer’s market. A buyer’s market occurs when there are more homes than buyers. The opposite is true in a seller’s market: there are more buyers than there are homes being sold. A buyer’s market gives buyers the upper hand, as they have far more options, and you are far less likely to have other offers. In this scenario, pricing below your competitors can help your distressed property stand out, and having to compromise on your pricing strategy may be in your best interest.

Underpricing is a strategic move if your home needs repairs and upgrades you cannot afford. Sometimes, setting a below-market price doesn’t reduce your final earnings as you might think. If you’re selling a home in the right circumstances, this strategy can help attract more potential buyers, which can potentially cause a bidding war.

Price your Property based on Seasonal Shifts in the Real Estate Market

Homes sell faster for more during specific times of the year depending on the stability of the real estate market and buyer behavior. You can boost the profits on your house by over 75% if you sell at an opportune moment.

While you may need to sell your home as fast as you can, if it’s possible, analyze the real estate market before listing. If there’s more demand for homes than supply, you may be able to earn more profit than when there are more homes listed. Oftentimes, the market will experience a surge in the spring, summer, and the early winters.

Remember, it’s okay to compromise on your pricing strategy. If you have any additional questions or you’re having trouble selling your distressed home, please get in touch with us using our contact form, or by calling us at (407) 305-5008.