If you are considering selling a home in poor condition, should you sell it as-is? It can depend on how expensive it is to fix the issues. A cosmetic repair may be an affordable and quick fix. It would allow you to raise the sale price of your home and sell it quicker.
However, suppose your home needs a new roof or has a leak that caused mold, visible damage, or electrical problems. In that case, the repairs may be more expensive than you can afford. This is where it can become a take it or leave it situation for potential buyers.
Factors that impact your decision to fix your home before placing it on the market
While your budget may be the primary reason you don’t make repairs, other factors can impact your decision.
Home Inspections
The findings in a home inspection report give your buyer a powerful negotiation tool when selling on the open market. If your home is in a state of disrepair, you’ll have to negotiate a lower price or let your buyer walk.
However, if you are selling a home in poor condition and as-is, the inspection findings don’t impact the sale. So, the buyer no longer has any leverage.
Current real estate market conditions
If it is a seller’s market you may be able to sell your house with fewer repairs. But, if it is a buyer’s market, and you don’t make repairs, you’ll have to list your home at a reduced price or expect your house to sit on the market.
Your neighborhood competition
Evaluate how your home stacks up against the competition in your neighborhood. If there is a mix of remodeled and as-is homes, you may be able to sell your home for a reasonable price.
If a lot of homes in your neighborhood have been updated or have curb appeal, your home will sit unsold indefinitely.
Return on investment
Paying to repair your house doesn’t make sense unless you stand to make more money than you spend. Consider the costs of repairs and then which are affordable and which will give you value for your spend.
Is my house distressed?
Before deciding to sell your home as-is, an appraisal can help you to understand whether your home is in poor condition. In Florida, a home is defined as a poor condition if it meets has the following criteria:
Your home is uninhabitable
If your home is dangerous, unsanitary, or unhealthy to occupy, it’s marked as unlivable. Some examples of hazardous homes include frayed or damaged electrical wires, black mold, lead or asbestos, serious plumbing problems, a non-functioning HVAC, and severe foundation cracks.
If visible repairs are required
While major repairs may not earn a poor rating from a house inspector, it can limit your appeal to buyers on the real estate market. Serious problems with wood rot, roof damage, and plumbing may label your home in poor condition which can make selling it challenging.
If it needs an update
Older homes may be safe to live in and can appeal to certain buyers looking for homes with historical value. However, the appearance of peeling paint, outdated finishes, and overgrown landscaping may mean an offer below the home’s value.
Know your home’s value
Even homes in poor condition have value. In most cases, the location, the size of the lot, and even the house are worth more than it will cost a buyer to fix it up. Don’t let its current condition fool you into accepting less than it is worth, because once it’s back in shape, it will be worth a lot more!
Why should I sell my home as-is?
Selling a home as-is is a fast and convenient way to unload unwanted property. Many people inherit neglected homes they don’t need, have to liquidate their assets quickly to repay debts or sell their homes to avoid foreclosure or a short sale.
Selling your home on the open market currently takes on average 93 days, which may not be fast enough if you need cash quickly.
If you sell your home as-is you still have a legal obligation to answer questions truthfully concerning existing problems. Real estate agents in Florida ask sellers to complete a Seller’s Property Condition Disclosure Statement so they can represent the home more accurately.
Once on the market, your as-is home may not attract buyers, and you have to accept a lowball offer due to its condition.
Benefits of selling to a company that buys homes as-is
Unlike selling a home in poor condition on the real estate market, contacting a company that buys homes, as-iscan remove the hassle of unloading a property in poor condition.
Convenience
Selling your house to Meli, a company that buys homes as-is, means there are no repairs, cleaning, or home staging required to sell your home. Simply schedule a walk-through and the sales representative makes you an offer based on your home’s current condition. Selling a house in disrepair to Meli also eliminates negotiations over the closing costs.
Zero Fees
There are no fees involved, no broker’s commissions, and no hidden closing fees. At Meli, we also work with you to resolve tax liens.
Quick Turnaround
Unlike a conventional real estate transaction, the sale happens quickly. You don’t have to wait for loan approval for the buyer, and your payment won’t be sitting in escrow.
At Meli, we take care of the paperwork and buy your home with cash. We can buy your distressed home in Florida from walk-through to payment within 30 days.
If you need to secure a house sale fast or face foreclosure or bankruptcy, Meli is an excellent solution. Schedule your walk-through and get an offer from Meli by calling us 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.
Meli Homes was formerly known as Simple Sale Central Florida as mentioned in this video and transcript, but the information provided is still just as valuable! If you have any questions, please reach out to the team at Meli!
For your ease, we have provided a transcript of the Distressed Home Q&A Recording.
Hey, this is Evan with Simple Sale Central Florida. We’re back for our monthly Q&A where we answer some commonly asked questions from our clients that we work with throughout Central Florida.
Just to have a little introduction to Simple Sale, we buy distressed properties throughout Central Florida. We bring transparency and accountability to distressed home sales in an industry where there’s many predatory tactics, and we work with our clients to be transparent and accountable during the process. Simple Sale buys properties throughout Central Florida from Tampa to Titusville to Orlando and anywhere in between.
Let’s get going. We have 10 or so questions here to go through.
1. I inherited a house with my siblings but we can agree on what to do with it, what can we do?
We see these situations a lot, where there’s multiple siblings and they don’t know what to do with their property. Depending upon how serious the disagreement is, sometimes properties never get sold because siblings can’t agree. In some situations they do, and a lot of it is just communication between the siblings, and we can help facilitate a lot of that.
There are also legal actions you can take in order to sell a distressed property, but that’s not the preferred route. You would much rather just have a good dialog between the siblings and figure out what the issues differences are in order to get the distressed property sold.
If you do go the legal route, it’s usually a 6 or 12 month process where you essentially go to a judge and request that they sell the property for you. It does take time, 6-12 months, and can be costly with lawyers as well. Typically the easiest way is to just communicate with all the siblings and come to an agreement.
2. Can I sell my rental property as-is?
Yes, of course. Rental properties, with or without tenants, you can sell those properties with no problems. If it does have tenants then there’s usually going to be requests for leases, proof of rent being paid and things of that nature. You can absolutely sell your rental property as-is in its current condition to a cash buyer. That’s not an issue at all.
There would be an issue if you had a tenant that was not paying rent and refused to leave. The property becomes a lot less desirable, but in our experience you can still sell that property. We’ve bought properties like that. The risk that the buyer has to take will reduce the price of the property, so you won’t be able to sell the property for as much as if the property was vacant. You can still absolutely sell your rental property as-is.
3. Can I sell a condemned property?
You absolutely can sell condemned properties. We’ve bought many condemned properties, condemned due to code violations or code violations, unsafe living conditions. Typically things of that nature will lead to a property becoming condemned. You can sell it in that condition.
Typically, there’s going to be legal issues that you have to figure out that comes with it being condemned but there shouldn’t be an issue. It is probably less desirable for a buyer, but the fact that it is condemned doesn’t mean that you can’t sell it.
4. I’m in pre-foreclosure, but I don’t know what to do because of the moratorium. Do you have any advice?
If you are in pre-foreclosure and your mortgage is insured by the federal government, the moratorium (as of right now) ends for you at the end of this year. If you’re in that situation, I highly suggest you figure out how to (A) sell the property, or (B) get the mortgage current.
If you get the mortgage current, obviously you don’t have any more issues. If that isn’t an option then, you would definitely want to sell the property so the foreclosure doesn’t ruin your credit. Having a plan on when you want to get the property sold is imperative. As of November 13th, you have 45 or so days to get that property sold.
I would highly recommend figuring out a plan to sell it or become current on the mortgage. Once the moratorium is lifted, the bank will have the right to foreclose on the property. This will ruin your credit and you’ll lose your property. I would say, in a lot of situations, if you sell your property before that point you’re going to get a lot more money for it. Once a property goes to foreclosure auction you probably won’t get anything out of it depending on how much money is left on your mortgage. The biggest thing is figuring out if it’s possible for you to become current. If not, then figuring out a plan to sell it.
5. I feel like my house is taking over my life and I just don’t want to deal with it. Can you help me?
We do work with a lot of clients that have had a property for a long period of time. It’s become a burden to them and they just want to get rid of it. They want to get rid of the problems, I think. You don’t just see cases like that with houses. It’s their house, it’s their car, it’s whatever. If it becomes a constant problem, you would rather get rid of it than continue to deal with the issues.
Typically in those situations it’s just better to sell it and get rid of the stress, because it’s not worth the stress it’s putting on you. We can help you by purchasing the property or we can help you list that property and get it sold. It depends on your situation and your property.
We can absolutely help you with those situations and it’s not uncommon. It is quite common to see people who have gotten to that point with their property. It’s not anything unusual or anything to be embarrassed about for sure. We can absolutely help you, without a doubt.
6. Do you charge any fees for handling my property’s problems?
No, we don’t. In a lot of scenarios we end up helping the person with their situation and we don’t end up working together for whatever reason. The person may just want to figure out what their situation even is. We’ll help them figure it out and we may not end up working together. Our goal is bringing transparency and accountability to distressed home sales. If we can help someone, we’re continuing the mission of the company and that’s OK with us.
We don’t charge any fees. We give that sort of consulting and specialist information away for free. In a lot of scenarios, those people may not work with us but some of them do. It’s just part of the mission of the company. Fees you’d typically expect when selling your home yourself include legal advice from lawyers or property repairs. In terms of legal issues like liens, figuring out what the real situation is, we can help you through that with no fees at all.
7. I live in another state, can I sell you a house I own without having to go there?
We have definitely dealt with situations where the person is out of state. Most times they’ll mail us a key and we’ll go look at the property and see if it’s something we can help with. That’s really the easiest way to do it.
We’ve talked with people and based on what they told us, we’ve given them an estimated offer. If we’re on the same page, we’ll sign a contract, they’ll mail us a key and we will work to move forward and close on the property. So no, you absolutely do not have to be in the state. You don’t even have to show up for closings. It can all be done remotely. You absolutely don’t have to go there; it can all be done remotely.
8. I want to sell my home in Fort Lauderdale, can you still help me?
We would definitely consider looking at the property. We are currently just focusing on Central Florida, but we would look at it and we can help you with your situation and still possibly buy the property. It would really just depend on your situation in particular but we would definitely consider it, but it’s not our core area at the moment. We also can help you list the property as well and possibly help you work with someone in the Fort Lauderdale area that might be more convenient.
9. Are there any problems you can’t work with?
There are very few problems that we can’t work with. In most situations, we can figure out the problem. I would say most of the time the reason we don’t work with people is because there’s an emotional or a price issue.
As far as legal problems or problems with the property, there are very few situations we haven’t been able to figure out. We’ve found people that couldn’t be found that needed to sign a deed. We’ve worked through probates with 7 heirs, some of which didn’t know each other and we found them.
We can figure out most problems with a house or the legal issues. Oftentimes the problem is that the person doesn’t know if they want to sell or not, or they want a price that’s just not attainable and that’s OK, that’s their choice. That’s just what we’ve noticed over time. Any issues we can tackle from a legal standpoint, we almost always figure them out.
10. How fast can you buy my home?
We actually had a question from a guy on our team, Dontae: “How long would it take to close on a property once the contract is signed?” From the point of signing the contract, in our experience it’s 30 days or less. I would say 89% of the time it’s 30 days or less, and many times it’s around 21 days. But almost always it’s 30 days or less.
If we haven’t closed in 30 days, there’s a legal issue we’re trying to figure out and we’re at the mercy of the municipality, whatever county or city that it may be in. We’re ordering documents, we’re working with lawyers to figure out the issue. But if it’s something a simple transaction where there aren’t legal issues there’s no reason we go more than 3 weeks really in almost any situation. 30 days or less is 89% of the time. If you appear to have small legal issues or no legal issues, you can expect to close in 30 days or less.
OK, that was the last question. I think we just answered Dontae’s question there. “How long would it take to close on a property once the contract is signed?” It’s going to be 30 days or less a lot of times, around that 3 week mark is pretty common. Yes, you’re welcome, Dontae. Glad you came on. So if there’s not any other questions, we’re going to go ahead and close this one out. This is our November Q&A.
Wrapping Up
As always, we buy properties throughout Central Florida. Orlando, Titusville, Tampa, so Brevard County, Orange County Pinellas County, Hillsborough County Ocala, Kissimmee. We really – anywhere in Central Florida we consider. Not to mention the Gainesville area, we also look there.
If you have a property in one of those areas we can absolutely take a look and see if we’re a good fit. If we are, then it’s what we call 3 Simple Steps. We’ll talk about the property with you online, then we’ll talk about the property with you either via phone or email, we’ll get information from you, we’ll give you an estimated offer. That’s the first step.
If we are on the same page with price for the estimated offer and we’re in the ballpark, we’ll come and do a walk-through of the property, typically within 24 hours, and make sure that the property is in the condition that we discussed and then from there. That’s the second step and the third step would be making the offer and getting closed.
Just 3 Simple Steps. We like to keep it as simple as possible and if you have any questions at all, feel free to go to our website, simplesalecentralflorida.com. You can call us at 407-338-4183.
That’s it for this month and we’ll catch you next month. Thanks everybody!
Meli Homes was formerly known as Simple Sale Central Florida as mentioned in this video and transcript, but the information provided is still just as valuable! If you have any questions, please reach out to the team at Meli!
For your ease, we have provided a transcript of the Distressed Home Q&A Recording.
Hey, this is Evan with Simple Sale Central Florida. We’re back again this month for our October Q&A. Covering questions that we commonly hear with clients that we work with throughout Central Florida.
Simple Sale Central Florida is a distressed home buyer. Distressed homes typically mean foreclosures, legal issues, excessive repairs – properties that need to be sold very, very quickly for whatever reason. That really defines the residential distressed industry.
We work in places like Orlando, Tampa, Titusville, Melbourne. Orange County, Hillsborough, Brevard, Pinellas, Osceola, Seminole County, Volusia. Many, many counties throughout Central Florida. We’re also looking at the Gainesville area to start buying properties there as well. Let’s get started with the questions.
1. I got stuck in a contract with another company and now they’re offering me way less than before, what can I do?
This is pretty common in the industry. A company will offer you what you’re asking for the property, whatever it may be. Let’s say it’s $100,000. They’ll get you into the contract, move forward and make you feel comfortable that the deal will close. At some point before closing, sometimes a day or days before closing, they’ll request reductions or what they call credits. They’ll say “oh, I didn’t know the roof was that way” or whatever, and they’ll request a credit. Those credits can be anywhere from $2,000 to $10,000 to $20,000.
As a seller, you’re emotionally and financially involved in the process, possibly trying to plan your life out. A lot of times those tactics work because someone is dedicated to closing. They want to move on with their life and just get rid of this distressed property, this stressful situation.
In that situation what you can do – hopefully, first off, the buyer has a deposit down, so you should have the right to that deposit. If they’re trying to offer you less and they’re not willing to close, you should have the right to that deposit. You should also contact the title company and tell them that this transaction is not going to happen because they’re changing the offer price. Tell them that you’re wanting to cancel the contract.
Because you’re telling the buyer you don’t want to close now, things could get pretty hostile, I would contact the title company directly. I’d possibly have a lawyer call the buyer and the title company and show them you’re serious. You’re not taking less for your property than what you agreed to. You went through an inspection period and everything checked out and now they want to change the offer price for reasons that should have been mentioned during the inspection period.
At that point it can become a legal issue and they can threaten to put liens on your property or what they call memorandums, but you’re in the right. You’re not in the wrong. The buyer may try to make you feel like you’re in the wrong but you’re not. It isn’t your fault, it’s just a tactic that companies in this industry use and they do it on purpose, unfortunately.
2. The foreclosure moratorium is the only thing keeping me in my home. What can I do when it’s over and I’m still behind on payments?
The moratorium ended for a small percentage of people that have private mortgages on their properties. We haven’t talked with any of those people to see how those foreclosures are coming along or if any foreclosures have been filed. I personally don’t know any sellers or have had any clients like that.
It really depends on your situation and how much you owe on the property. Let’s say the property is worth $100,000 and you owe $100,000, and you’re going to walk away with nothing. Depending upon your situation, if you’re already in foreclosure and someone offers you the money to get out, it seems like a logical conclusion to go ahead and take that offer, but there are options outside of that. You can try to re-negotiate with the bank. Those processes can be difficult, but it’s possible that they would negotiate with you to see if you could get a lower payment or if they can give you an extension of, you know, 69 days. You can start those dialogues, because if you really need to stay in that home for whatever reason, there are other options than just selling.
If you are just trying to get out of it and you can get out of the foreclosure without it hurting your credit, that may be your best option. But it really, really just depends. It’s also possible for you to have someone take over your mortgage and make the payments and take possession of the property and make your payments for you. You move on with your life, assuming you don’t want to buy another property with a mortgage. They’ll clear up the foreclosure and continue making the payments.
In those situations, a lot of times investors will pay the mortgage payment and rent out the property. They’ll pay down the mortgage over time – over 5, 10, 20 years. Eventually that mortgage will get paid off and you can move on with your life without having to worry about it anymore because the person or investor has an obligation to continue paying that.
I think I answered that one pretty well, but it’s a situation-by-situation basis. If you want more information, just reach out on the website simplesalecentralflorida.com. We can evaluate your situation and better understand what you’re working with. The principal owed, how far behind you are on payments, things of that nature really matter. You could also consult with a lawyer, that’s another option. They could really understand your situation and point you in the right direction.
3. Will my house be worth more if I take care of the legal issues myself??
Absolutely. The legal issues on a property can mean big, big differences in what it’s worth. If you have what they call a broken chain of title, the house essentially can’t be sold. If it is sold, then the person that’s buying it from you isn’t actually taking full interest in the property. They’re probably buying some less than 100% interest in the property and they don’t even know it. When you take care of those legal issues yourself, the property will most likely be worth more.
In our experience, legal issues can start as simple as $300. We have one property right now that we’ve been working on since May 2019 and it’s closer to $10,000 in legal bills. It’s not finished, but we should be this month or next. So $300 all the way up to $10,000+ in legal bills.
If you have the money and a lawyer you trust, it will definitely increase the value of your property by more than what you pay. That’s something to keep in mind. It’s all about having the legal team there that you trust to get the legal issue resolved. Also having the money and the patience to be able to deal with it because legal issues can take anywhere from a few days to years. The one we’re working on right now we’ve been filed in the courts for 10 months or so. It can take a long time.
4. Is there any way I can sell my distressed home using a realtor?
Yes, you can, it’s possible. Typically, realtors or agents have a hard time understanding the situation because they aren’t investors. They may try to sell your property for less than what it’s worth, over-price it, or give you advice on that specific situation that isn’t necessarily accurate. I’m not saying they’re lying to you or they’re uninformed. Realtors are very well-informed and most agents are very well-informed, they just haven’t seen those problems before.
For example, you may have a legal issue and they’re pointing in directions that aren’t the most efficient. That’s not always the case and you can totally sell your distressed home that way. I would try to find someone who’s an agent and an investor that can deal with those issues. Someone who knows those issues and can clear them up and put it on the open market, like an MLS, so you get the money you deserve for the property.
5. Should I shop around when I’m looking to sell my home?
Absolutely. Some clients reach out to us and ask us questions like “Are there other people that do this?” or “Are there other companies?” Or they say “I’m actively looking at other companies.” We highly recommend you talk to other companies. Get to know them, their process, and their goals. What’s their mission when working with their clients? Having more than one point of reference on the homebuyer industry will give you a good idea of what companies serve their clients well and what companies don’t.
I think it will become apparent very quickly which companies really care about their clients and which ones are just saying or doing anything to get you into a contract to try to manipulate you in order for them to have personal gain. Unfortunately, it’s part of the industry, but you should always look at more than one company. It will give you a point of reference on which company is the best and which one you should work with.
6. How does selling my house to Simple Sale Work?
This is what we call the 3 Simple Steps. Step 1, you get an estimate on your property. After discussing the estimate via phone we will come view the property to confirm the estimate. That’s step 2, doing a walk-through. Step 3 is making you an official offer on the property, typically same-day, possibly in person, we’ll make that offer and then move forward with a contract.
To reiterate:
1: Giving you an estimate on your property via phone and reviewing it online
2: A walk-through of the property to confirm the estimate
3: Getting an offer on your property
In some situations we would give you our estimate and then confirm our offer without a walk-through, but in most situations we would still walk through the property to confirm the offer.
7. How much work is it for me to sell you my home?
We get this question a lot. If you look at some of our reviews, you’ll see clients mention how little time they spent on the actual process because we try to make it as simple as possible. We really want you to do as little as possible, so we handle all the steps and processes that come with clearing title. Working with the title companies and conveying the title. We absolutely do not charge fees for giving you an estimate or an offer. No fees for walk-through, nothing. We do not charge fees for anything like that.
To fully answer the question, we try to make it as little work as possible. We shouldn’t have much more than a few conversations on the phone, a walk-through, and then signing a contract and a deed on close. There really shouldn’t be much more than that. If there is anything more than that, it may be because there’s legal issues, but we would handle most of those and explain what’s going on as we’re handling those problems.
8. Are there any good resources to find more information on distressed homes?
I think as a company we do have a lot of information on our website, simplesalecentralflorida.com. We have a lot of articles written that explain questions like:
All types of articles that help explain how the process works and how to do it yourself without working with someone like Simple Sale Central Florida or another homebuyer. That’s one option. You can also search on Google for more information. For example, if you have a tax lien on your property, Googling “what people do when they have a tax lien on their property.”
One good website for really deep information is biggerpockets.com. It’s mostly real estate investors, but there are sellers learning about what’s going on with their property from investors. There are a lot of articles and opinions on certain aspects of distressed home sales. That’s a great reference but you can Google it and try to find a reputable source like our website, biggerpockets.com or an attorney’s website with blogs or information. Those three would be good references but there isn’t any one source in particular that I would recommend.
Wrapping Up
I think that is it for today for our Q&A. If there are any other questions you can put them in the comments now. I don’t see any, if there aren’t any questions that come up in the next few seconds, I’m going to go ahead and conclude here.
We are Simple Sale Central Florida, we buy distressed properties throughout Central Florida. Our main goal is to bring transparency and accountability to distressed home sales. That really means that we’re accountable for what we do, we’re very transparent about the process and we try to work with our clients to give them the best experience possible in a situation that’s very stressful. That’s our goal and that’s what we strive to do.
Give us a call any time at 407-338-4183 or you can visit our website, simplesalecentralflorida.com, and we will typically get back to you within a few minutes after you’ve filled out the form. We’d love to answer any questions you have about your property. If that is it, thank you all for viewing and we will be back next month with another Q&A. Thank you.
Life is unpredictable, and sometimes, despite our best efforts, we find ourselves in difficult financial circumstances. Getting out from under debt can be stressful and overwhelming, particularly if you don’t know your options.
If you have a property tax lien on your home, your best option might be to sell. But, can you sell a house with a property tax lien? The short answer is yes. However, selling a house with a lien is generally a little more complicated, and you’ll want to understand the process before making any big decisions.
What is a Property Tax Lien?
A property tax lien is a lien placed on your home when you owe property taxes to your city or county. Sometimes, property taxes are built into your monthly mortgage by your lender. Otherwise, property owners pay taxes separately for the annual bill.
Whether you fall behind on your mortgage or have unpaid property taxes, the government can put a lien on your property, frequently resulting in foreclosure. Unresolved property taxes are just like any other debt. Interest and penalties will continue to accrue with each passing day, so it’s a good idea to address the problem quickly.
Confronting a Property Lien
Your home is likely your most valuable asset. If you’re struggling financially and don’t have the means to clear your unpaid taxes outright, your best option to settle the debt may be to sell your home. We can show you how to remove a tax lien.
We’re frequently asked the question, “Can you sell a house with a property tax lien?” The answer is complicated. Ultimately you will need to deal with your tax debt before the house can close escrow. When you sell a home with a tax lien, you’re not transferring the lien with the house. The debt is yours, and you will have to resolve it before the sale can close.
However, you can begin the process of selling a house with a lien. It can take time to resolve the tax debt, and you don’t want to wait until the house closes before dealing with it.
When confronting such a situation, you need to know how to remove a tax lien. Essentially, you have three options.
Pay the Debt
Obviously, the easiest, most straightforward way to settle any debt is to pay it. If you have the financial means to pay the lien, interest, and penalties owed, you should. This can help you to avoid a foreclosure or tax levy.
If, for example, the tax debt is owned by someone else or you have already paid the taxes, you should contact your city or county government and resolve the issue as quickly as possible. Disputing tax debt isn’t easy, but it’s worth pursuing in some cases.
Sell Your House
If you find yourself unable to settle unpaid taxes outright, you may find that selling your home is the next best option. You can’t close escrow on a home without resolving the lien, but you can start selling your house in order to use the proceeds from your sale to pay to remove the lien.
Tips for Selling a Home with a Property Tax Lien
There are some essential things to consider if you’re planning to sell a house with a property tax lien.
Know the Value of Your Home
Before selling any home, it’s important to determine how much it’s worth. You’ll want to explore listing and sale prices for comparable homes in your area so that you can set a reasonable asking price and evaluate any offers made on the property.
The team at Meli Homes has extensive experience selling homes throughout Central Florida from Tampa to Orlando to Cocoa Beach. We understand the market in your area, as well as the complexity involved in selling a property with a lien.
Be Honest
Whether they’re in denial or simply embarrassed about their debt, some homeowners think they can keep the property tax lien quiet until after the home has closed. You may be reluctant to alert buyers to your lien, but honesty is the best policy here. It’s never a good idea to mislead a buyer or an agent, and a quick title search will show existing tax liens on your property anyway.
The bottom line is that you can’t complete your home’s sale until your debt is resolved, so there’s no benefit to keeping it a secret.
It is helpful to have a knowledgeable real estate professional in your corner throughout the process of selling a home to help you navigate and ensure things run smoothly. At Meli, we are familiar with the intricacies of the property tax laws and regulations specific to Florida. This makes us uniquely qualified to walk you through the process.
Find the Right Buyer
While some home buyers are reluctant to purchase a house with a lien, others aren’t dissuaded by the extra steps involved in buying these properties. You’ll want to work with the latter.
Connecting with a qualified, committed buyer is an integral step in getting out from under your debt. Meli Homes represents many verified cash buyers looking to invest in difficult-to-sell homes. Our team can be your link to the market you need to tap into in order to sell your home for a fair price.
The Takeaway
Selling a home can be stressful under the best circumstances, but particularly with the added complications of a property tax lien. You’re likely eager to have it resolved as quickly as possible. At Meli Homes, selling challenging homes is our specialty, and we’re equipped to deal with every tax situation.
You’re not in this alone. The qualified professionals at Meli can answer that complicated question, “Can you sell a house with property taxes owed?” by addressing your unique needs. Call us today at (407) 305-5008 to get started. Let us help you resolve your situation and restore your peace of mind.
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.
Meli Homes was formerly known as Simple Sale Central Florida as mentioned in this video and transcript, but the information provided is still just as valuable! If you have any questions, please reach out to the team at Meli!
For your ease, we have provided a transcript of the Distressed Home Q&A Recording.
Hey, it’s Evan with Simple Sale Central Florida. We buy distressed homes throughout Central Florida, from Tampa to Orlando to Titusville.
We’re bringing you a Q&A. We typically do these every few weeks to answer any questions that we typically see from home sellers. As a distressed home buyer we see tons of questions because it’s kind of a topic that there isn’t a lot of good information about, so we like to bring you Q&As in which we openly talk about things that we see everyday.
And again, I’m Evan with Simple Sale Central Florida, and we will dive right into questions.
1. Is there anything I can do to get a higher offer on my home?
There’s always things you can do to get a higher offer. Very simple things would be just cleaning the property up. That’s going to bring a higher value, for example. If there’s a lot of junk or items like that, cleaning the outside of the property, the inside of the property, floors – replacing floors is a really easy thing that can make a big difference on the value of your property.
Other things could be updates, but that’s going to get a little more complicated, and a little more time consuming and hectic. But I would say the biggest one would really be just making it more appealing, in the sense of it’s just a cleaner property. That would be the fastest and easiest way.
If there’s a lot of junk around the property, that can be unappealing to home buyers that come and look at your property. It’s like anything else in life, if something is dirty, if there’s a lot of junk, it’s just less appealing to anyone that wants to buy it, even though it actually may not have a significant effect on on the house itself. You can make a big difference in what you’re going to be offered for your property.
2. I’m not sure if I’m ready to sell yet. Can I still talk about my options?
We have people all the time that just want to talk about thinking about it. You know, don’t know if I do want to sell or don’t want to sell. We will absolutely talk with you about your options and then make a recommendation.
Quite often we do tell people to not sell or maybe they should list their property because it’s not a good fit, they’re not actually a distressed property. Maybe there’s some very minor things wrong with the property that, in a sense, if you sell to someone that’s an investor or cash buyer, you’re going to get sell it for a significant discount and you’re really not going to get the most money out of it.
With that being said, yes you can absolutely call and we can talk through all your options and then make up a recommendation on what we think is your best option.
So yeah, feel free to call, 407-338-4183 is our number. You can go to our website, simplesalecentralflorida.com, and you can leave your information and we can give you a call. But with that being said, absolutely. We don’t charge to give advice on what we think is your best option because it’s not always us. We’re not always your best option.
In a lot of situations your best option may be not doing anything at all. You may be considering selling your distressed home and then it ends up that it’s probably not your best option and may be a better option just to keep it and rent it or, also list the property. Absolutely give us a call anytime and we will talk about your options.
3. Will I have to pay any fees for working with a distressed home buyer?
No, working with a distressed home buyer you typically do not pay any fees. Let’s say someone offers you $200,000 for your house. That’s typically what you’re going to get minus pro-rated property taxes you’re probably going to get around $200,000 minus whatever property taxes you may owe. Otherwise, if you’re being charged closing costs or anything of that nature, that’s very uncommon.
If an investor or cash buyer or home buyer is buying your property and they’re trying to charge you fees, that’s not typical and I would question the validity of that. You may be working with an unreputable company if they’re trying to add fees that you don’t understand because it’s very uncommon.
Like I was saying, typically what you get offered is what you’re going to get. If that’s not the case in your situation, then I would question that company and figure out “What are these fees that you are charging me? It doesn’t make sense. Why am I paying closing costs? Aren’t you supposed to be paying closing costs?” Those are the types of questions I would be asking.
4. Do you require any sort of contracts to work with you?
This kind of refers back to the question that we talked about earlier. As far as talking about your options, you don’t have to sign any sort of contracts. That advice is free, no obligation, just trying to give you value in a situation where your property may be distressed. We’ll give out information to try to help you and get the best result possible for you.
As far as working in the sense of purchasing your distressed home, yes, you’ll have to sign a contract. We’ll enter into a contract period. Typically, how a contract works is we’ll sign a contract and there will be anywhere from a 3-day to 14-day inspection period on the property, and during that inspection period we will evaluate the property and work to see if it is a good fit, and then close on the property after the inspection period, typically in less than 30 days.
So yes, you have to sign a contract in the sense to sell your home but as far as just talking about your options you do not have to sign a contract with us. You do have to sign a contract in order to sell your property.
5. Can I choose my closing date?
Yes, you can absolutely choose your closing date. We are very flexible on when you can close on your property. Typically it is going to be in less than 30 days. That seems to always be the case. People want to close relatively quickly and we work with the seller to choose a date that works with them.
You can be flexible, Monday through Friday. I would say in a lot of cases we close on Fridays but any time Monday through Friday in a period, any time of month is fine. So, yes you can actually choose your closing date.
There is another question that references this, but you can actually stay in your property anywhere from a couple days to a couple of weeks after closing to move your stuff out of the property. We typically allow anywhere from 2 to 14 days to give you time after closing to move out of the property.
You can have a closing and then remain in the property for a short period of time. All of that would be contractual, to make sure that you’re going to be vacating the property at some point after close, but there is a move out period available. People use it on occasion, it’s not used as often, but it does happen in certain situations and we are flexible working with you for that.
6. Do you buy homes outside of Central Florida?
We do consider them, and we look at them actually quite often. I would say that most of the properties are in Central Florida, but we would absolutely look at your property outside of Central Florida. Anywhere in the U.S. for that matter. We’ve done deals in several different states, it really just depends on the property, but we are definitely open to looking at your property anywhere but our focus right now is currently distressed homes in Central Florida.
7. Will I have to do any major cleaning or repairs before I move out?
No, you don’t; you really don’t. You really don’t have to clean the property or make any repairs. We’ve bought properties that have significant issues and tons of problems and it doesn’t really make a difference but referencing one of the questions earlier, cleaning or making those small repairs to your house is going to get you a higher value, without a doubt.
Taking the time to throw away junk or making small repairs like minor bathroom updates and things of that nature is going to make a difference. But do you have to do those things? No. You absolutely do not have to do those things.
We purchase distressed properties as-is with junk or excessive repairs, leaks, roof issues, electrical issues, anything of that nature we will definitely close on the property with no problem, so it really isn’t an issue.
8. What kind of legal issues do you deal with on homes you buy?
The typical legal issues would be probate. Probate is where the owner of the property has died and you are needing to go through the courts to determine that the property is now yours. This process can last anywhere from 3-6 months going through the courts. Other legal issues would be liens, judgments, things of that nature. Depending on the liens or judgments it can be a very short process or it could be a very long one.
We are currently dealing with one with code violations in Tampa that has taken several months, but you know, that’s what we do and we can always work through the issues, those legal issues, but honestly the most common is a probate. That’s what you see most, because it’s something that people don’t really talk about, but it’s also actually very common. Those are the types of things that we deal with.
9. Do you list properties on the market?
We do now list properties on the market. We didn’t up until a few months ago, but now we are currently listing properties. If someone brings us a property and we know without a doubt that our cash offer isn’t going to be competitive compared to what maybe a retail buyer would pay for the property, we do offer listing service in order to allow the client to get as much money as they can for the property.
At the end of the day our goal is to work in the interests of the client, and to do that in some scenarios listing the property makes more sense and they get more money for it and really, that’s our goal, is for someone to take a distressed property and get the most they can out of it and move on with their life. If that means listing the property and selling it to someone else we will absolutely do that. We will make that recommendation.
So yeah, Simple Sale Realty is now listing properties. I would say it’s not our first option. We would always rather buy the property, but in some situations if it doesn’t make sense for the client, we’re not going to recommend we buy the property if it isn’t the best choice for you.
10. What can I do if my property is worth less than my mortgage?
This is what would be called a short sale. You would negotiate with the bank on making an offer that’s less than the mortgage. Let’s say, for example, your house is worth $200,000 and you have a mortgage for $250,000, you would go to your bank and you would say “I have someone wanting to buy my property,” and we would help you with these negotiations as well, “I have someone wanting to buy my property for $200,000. I know I owe $250,000, is that adequate?”
You’ll have to get it approved by the bank on the short sale, and when you do get approved then you can sell the property for that amount, whatever that determined amount is. You can absolutely negotiate with the bank on your mortgage. It’s done more often than you would think and it’s really not an uncommon occurrence – it really isn’t. It’s done quite a bit and it’s a useful strategy for people in situations where for whatever reason. Maybe they bought they bought their property for a price that was too high and now they need to sell.
You can absolutely negotiate with the banks on your property, and get out of your distressed property situation. That is something that we always consider. With the short sale process it can take several months if not a year, so keep that in mind. It isn’t a short process in all scenarios it’s going to take 6 months or more. It’s totally possible you can sell the property that way, it’s just going to take some time.
I think that’s it for today. Are there any questions out there? I know I see a couple of people on here. If you have any questions at all feel free to ask, and also we’re always here to answer your questions. You can message us on Facebook, that’s a really easy way and you can catch us at simplesalecentralflorida.com.
You can send us your property’s address and your information and we will reach out to you and talk with you about your property, discuss what issues you’re having, and see if we’re a good fit for one another. If not, then that’s really not a problem. The goal of the company is to help the client out of their distressed home situation. If that means not working with us that is absolutely fine. We’re here to provide a service and that’s really the core of the company. If we’re not a good fit we’ll find a good fit for you, and it doesn’t always have to be us.
I guess if there aren’t any questions – I don’t see any questions, then that’s it. Like I said in the beginning, we purchase distressed properties throughout Central Florida from Tampa to Orlando, Titusville, Melbourne. Really from coast-to-coast in the Central Florida area we are actively buying properties.
If you have a distressed home that you are looking to sell or if you just have questions about distressed properties, give us a call at 407-338-4183. We also have an ebook on the site that you can download and there’s some good information in that. It’s a short, simple ebook that will tell you about distressed properties and help you with your distressed home situation.
But if that’s it then we will catch you next time. Feel free to reach out anytime. Thank you.
There are many decisions that go into selling a home. Do you want or need to move? Is this the right time to sell? Can I afford to sell? Can I afford not to? What is the least complicated, most effective way to get your home sold?
One option is to sell your house as-is. This essentially means you’re acknowledging that your home is a fixer-upper and communicating to buyers and their representatives that you aren’t interested in doing any major repairs or updates to the property. In other words, for the most part, what you see is what you get.
There are somepros and cons of selling a house as-is, and it isn’t necessarily for everyone. There are many things to consider before you decide to list your home for sale. People opt to sell their property as-is for different reasons, but most frequently, to save time, money, and the hassle of the traditional home sale process.
Save Time
The process of selling a home can seem endless. On the front end, you have to find an agent; then, you’ll need to list the property. It will likely take you some time to clean, stage, and update your home to make it most attractive to potential buyers.
Once your home is ready for show, you have to wait until the right buyer comes along, and that can take months. When your house finally sells, you still have to contend with lenders’ delays, multiple days in escrow, and the possibility that the sale will fall through.
Save Money
It’s never worth the risk of going into debt to make improvements on your home, particularly when you want to sell. Home repair and remodeling are costly. You may choose to make updates to get a better asking price, but you should weigh the cost of that investment versus the likely return you’ll see upon your home’s sale.
To be fair, as-is properties sell for less than an updated home, and potential buyers will factor in the costs of needed repairs when making an offer to buy. You’ll want to weigh the costs of selling your property as-is. Opting out of improvements and selling for a little less may end up saving you in the long run.
Save The Headache
Often, sellers want to sell a home as-is simply because they don’t want to deal with the headache of updating, repairing, and marketing a home. Buying and selling a home is inconvenient, at best.
If you just want to get a piece of property off your hands, selling as-is can be an especially good option. If you’ve inherited a fixer-upper from a deceased family member or friend, you may not have the interest or energy needed to endure the lengthy process of selling a home.
An additional benefit of working with Meli Homes is our fast, streamlined process. We deal almost exclusively in distressed and as-is properties. We can anticipate the curveballs, walk you through the process and save you money, time, and the hassle that generally goes with selling a home.
Additional Considerations when Selling As-Is
As-Is Isn’t for Everyone
There tend to be fewer buyers when you’re selling a property as is because they require work. Your as-is house might appeal to a young couple eager to turn your fixer-upper into their dream home, but other buyers may shy away from the need for major renovations. There tend to be fewer buyers when you’re selling as-is because these properties require work. Your home might appeal to a young couple eager to turn your fixer-upper into their dream home, but other buyers may shy away from the need for major renovations.
It helps to have the assistance of a seasoned investor of as-is properties to ensure your property is being seen by the people who are most likely to buy it. The team at Meli Homes works with various verified investors, specifically seeking as-is properties to buy.
Know Your Obligations as a Seller
Some people mistakenly believe that by labeling a property “as-is,” they relieve themselves of any buyer’s disclosure obligations. In actuality, Florida law requires a homeowner to disclose any defects to the home, even if the buyer doesn’t ask for it.
The professionals at Meli Homes are experts in real estate law specific to Florida and can help you protect yourself and avoid potential legal issues down the road.
Know Your Home’s Value
Just because the house you’re selling needs some improvement doesn’t mean you shouldn’t get a fair price.
To avoid being taken advantage of by a less than scrupulous buyer, it pays to have the assistance of an experienced Central Florida real estate professional familiar with the sale prices of comparable properties in your area.
Meli Homes has facilitated as-is property transactions throughout Florida for sellers and cash home buyers from Kissimmee to Tampa to Melbourne. We can ensure you get the best price for your home.
Call Meli Homes Today
The buying and selling of as-is homes is a specialty niche in real estate investment. It can be an excellent option for buyers and sellers, but it can be a more complicated process than a traditional sale.
Meli Homes is a reputable home buying firm with a proven track record for working with as-is properties. Our company represents financially secure cash buyers willing to purchase properties in any condition and move quickly.
As one of the most trusted home buying firms in the state, at Meli Homes we know the ins and outs of selling a house as-is and can facilitate a fast, smooth process.
We even offer incentives to sellers who schedule a walkthrough of your home within 48 hours, so call us today at (407) 338-4183 so that we can discuss your home, your particular needs, and the best path forward for you.
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.
