If you are faced with a distressed property you can no longer afford, you’re not alone. In the United States, about 2.1 million households are three months or more behind on their mortgage payments. It may seem hopeless, but there are ways to deal with distressed property. Working with a cash home buyer like Meli can make the process of selling your home more manageable. Regardless of your situation, we make competitive offers when webuy distressed homes.
When Does a Home Become Distressed?
If you are wondering “what is a distressed property?” it’s essentially any property where the owner can no longer meet their financial obligations. Perhaps they’ve defaulted on their loan or no longer have enough money to pay the property tax and mortgage. In addition, a distressed property is generally a house in disrepair, having been neglected over time, or vandalized.
Distressed properties gain a lot of attention from investors because they provide a chance to buy at a bargain price and flip for a profit or to create a rental property. There are several options to consider for how to get rid of the house while improving your personal financial situation.
Before selling a distressed property, evaluate its true worth. There are several ways to approach this.
The easiest and least expensive method of determining your home’s worth is with a Comparative Market Analysis (CMA). A CMA evaluates the relative value of your home by looking up nearby properties or contacting a real estate agent.
There may be a need for an appraisal if there aren’t many comparable houses in the area. At Meli, we also provide you with an estimate of your home when it’s in poor condition and you are looking to sell.
Decide if You Should Repair or Sell As-Is
Whenever you’re dealing with a distressed house that has fallen into disrepair due to neglect, think about whether you can recoup your repair costs in the selling price before undertaking any major repairs. For example, vinyl window replacements in Orlando average $19,367, but the resale value is only $14,249 in 2021. That means you’d be able to recover just 73.6% of the money you’d spend. Do some research into which repairs add the most value to your property when selling a house in poor condition.
Various things may go wrong during a major repair, including finding asbestos or lead which can increase your costs dramatically. So, significant repairs to a distressed property may not be the best option if you plan to sell it to a cash buyer.
In place of a renovation, focus on freshening your home with minor updates like a deep clean and decluttering. The key to selling a property that needs a lot of repairs is to price it low and accentuate its best features. This helps to demonstrate the potential it has if repairs are made. Unfortunately, for a seller who’s in a financial bind, pricing low to attract investors isn’t always an option.
Evaluate Potential Buyers
Even if a conventional home buyer is interested in your distressed home, it’s likely that the process of them gaining approval from their lender will take some time, which can slow down the sale process immensely. This is especially true if the home is in need of serious repairs; the lending institution will likely perform an inspection and may be hesitant to approve the loan if they determine the financial risk is too great.
Cash homebuyers don’t need a mortgage and have a network of reputable investors to rely on. You can reduce the chances of an offer disappearing at the last minute when you work with a reputable home buyer in Central Florida.
Give Complete Disclosure of Your Property Before Selling
Even if the property has material defects that aren’t visible to the naked eye, you must be honest about any possible flaws that could affect its value. Despite Florida not requiring the disclosure of defects in writing, concealing property defects raises the possibility of legal issues. Even when you are selling your house as-is, you are still required to disclose any defects you are aware of under Florida law.
If the buyer discovers the issues before closing the deal, they will likely want the price reduced or pull out of the deal entirely. For your protection, it is best to have your disclosure done in writing.
Gather Your Real Estate Documentation
As a seller, you may find it challenging to get all your contracts in order. In addition to disclosing any issues with the home, you’ll need to ensure you keep copies of all sale-related agreements and file necessary paperwork correctly. Failure to do so can put you at risk of legal trouble down the line. To avoid handling the overwhelming documentation yourself, consider working with a professional cash buyer like Meli.
With a cash buyer, you avoid the prolonged financing and closing process to complete the home purchase and we handle all the paperwork for you. You can also accelerate the sale with a cash buyer because there’s no need for a lender to evaluate the buyer’s creditworthiness.
Get in Touch with Meli Homes
While many homes on the market require some level of repair, some require extensive maintenance that can’t be ignored. If you don’t have the financial means to make necessary repairs to your home, consider implementing some of these tips for marketing the property, or contact a cash home buyer in Florida so you can off-load your property as-is without the hassle of listing it.
If you’re selling a house that needs repairs in Central Florida, Meli can help. We buy distressed homes. Give us a call at (407) 338-4183 to schedule your walk-through and start a consultation.
For your ease, we have provided a transcript of the Q&A Recording.
Hey, this is Evan with Meli, back for our monthly Q&A. I just want to take a quick second to introduce Meli. Meli was formerly Simple Sale Central Florida. We ended up rebranding the company to the name Meli, short for “ameliorate,” which means to make something better.
So in our line of business, we find houses with title issues like probates, liens, code violations, things like that, and we work to fix the situation for the property. We also, of course, buy properties that have excessive repairs and things of that nature. But, now we’re really focusing on properties that have extreme title issues. A lot of the clients we work with are in that category, so we decided to just really market toward that set of people that are going through those types of situations. Examples like, they need a probate on a property, a lien negotiated, or things of that nature.
1. What are my options if I have a really difficult problem with my home?
If you have a difficult problem with your home, I suggest you consult an attorney and see what they think about your situation. You can also consult with home buying companies like Meli, for example. We deal with those situations. Other homebuyers probably also deal with a lot of these situations.
As far as your real options, I recommend you consult an attorney, or someone like us or another home buyer. Someone that’s experienced in handling situations where there is some kind of title issue on a property.
2. I tried to get a lien off my house but can’t figure it out. Can you help?
Of course, we can. We’ve negotiated, at this point, hundreds of liens on properties mounting in millions of dollars for clients. We’d just get on a call and discuss your scenario and really try to help understand what’s going on. If it’s a situation we think we can help you with, we would then look deeper into the records. We may see that lien filing, see exactly what they’re looking for, what they’re looking to get, and if it’s negotiable…
But we can definitely help. That’s exactly what we are looking for, is to work with clients that are going through those types of situations.
3. I’ve never heard of a probate before, what is that?
So, a probate is when you have a relative, let’s say, for example, a parent that passes away. In order for their assets and belongings to get conveyed to the heirs, whether that be children or whomever, you have to go through a process called probate.
This is essentially the legal way of showing that you have the right to inherit that deceased individual’s belongings, whatever that may be. Whether it be a house, cars, money, things of that nature, you would go through the legal process called probate. During that process, it will determine who is entitled to these items. Maybe you and your siblings, or whoever, are entitled to these. In some scenarios it will show that you are not entitled to those things.
The reason for that is to make sure that people aren’t trying to inherit assets that aren’t theirs. People try to maliciously take assets from a person, which I’ve seen before. I’ve seen people create a will or falsely say they inherited a house, when in fact it’s not legally theirs. Those types of things do happen. That’s why probate is important, is to make sure that whoever is supposed to inherit the house actually inherits it.
4. How can I sell a house if it’s inherited in probate?
What I would recommend is pretty simple. Even if it’s in probate, you can still sell it, you would just go under contract with a home buyer. And they would buy the property whenever the probate was through.
Unfortunately, I’ve seen people trying to do probates by themselves many times, and I’ve never seen it end well. But people try to do it because they think they’re saving money. Ultimately, they don’t understand the law well enough. They don’t file the right documents, and they end up with an unofficial probate that doesn’t convey the property correctly. In those snares, they have to go back and fix it, or they end up spending a lot more money on attorney’s fees to clear up the title issues that they’ve created.
So, to sell a house that’s in probate, hopefully you’ve got an attorney and you’re going through that process. Then, you’d sign a contract with someone that’s looking to buy the property and close on it. That’s really all there is to it. There’s not a huge process. Once that probate is finished, if it’s done properly, you would then just proceed to closing.
5. How should I start trying to fix the title issues on my home?
I would highly recommend that you reach out to an attorney. You could also reach out to a company like Meli, if not Meli. We’ll discuss the issue with you and see if it’s something that we can help you with. An attorney will be able to try to help you, too. They’re going to be able to get you through that process in most scenarios. But, they may have to have a retainer for their work, or maybe they can negotiate through a scenario, but by the time you pay them, it’s not worth it.
You have to think about if it’s really worth it. If the attorney can save you hundreds of thousands of dollars, then you should just consult the attorney. But if not, then someone like Meli can help fix those title issues, and we don’t do it for a fee upfront or anything of that nature, and just fix the scenario, whatever that scenario is. And then we would either buy the house from you or we would list it for you and broker it and get it sold.
6. How can I resolve a tax lien on my home?
Your options depend on what type of tax lien it is. If it’s a property tax lien, then you would have to just go pay it. If you owe $5,000, you would just go to the County and the municipality and pay it. As a note, property taxes are not negotiable. You cannot negotiate those down. Now if it’s an IRS lien, those are negotiable. Depending on your situation, you can go try to negotiate those down, and then ultimately come to a price for that lien that you would negotiate through.
So, you can negotiate the lien and sell the property simultaneously. It’ll take anywhere from 60-120 days to negotiate those liens with the IRS, and then you’ll have that negotiated payoff. Let’s say it was $100,000 and you negotiated down to $80,000. You can have that payoff ready for the closing.
Again, with the property tax lien, you can’t negotiate those. If you didn’t have the money, a lot of times people would just end up selling it. What you don’t want to do is wait till the last minute and try to sell it because that property is going to go to a Tax Deed sale. If you wait till the last minute, the sale may not go through fast enough. You just want to be very careful. If you’re within 30 days or less, you really need to move quickly. Make sure that you avoid that.
We’ve had situations where we paid for the taxes before closing to make sure that the property wasn’t sold, or wasn’t sold as a Tax Deed sale. There was a property; they owed about $6,000 tax liens. We went and paid them before the closing. So, we saved the property and ended up buying it a few days later.
7. What do I need to do to sell my house if it has code violations on it?
With code violations, it could be a couple of different things. It can be active violations, or it can be code violation liens. With an active violation you have a couple of different options. One, you can fix that situation. Let’s say it’s something simple like you haven’t mowed your grass, then you just mow the grass. Then, you could go to the code violation authority and code enforcement and tell them, “Hey, I mowed my grass. Please drop this.” And they’ll typically drop it. Maybe you may have to pay a small fine for that and then you’d be able to sell the property.
Now the other option: some people will buy the property with the code violation. Say it’s an active violation, or there’s a structural issue with the property and somehow, you’ve got a code violation. Some people will just buy it with the active code violation using what’s called a Hold Harmless. This holds them, essentially saying “I know that there’s a code violation on this property, I’m still going to close.”
With code violation liens, you’d fix the situation and then pay the lien. Code violation liens are unusual because it takes a while to get one. But, let’s say you hadn’t mowed your grass in a year, then you got it mowed. You could then go to the code enforcement and say, “I’ve now mowed the grass. I know I owe $15,000 in code violations. I’m going to pay those and settle.” In that scenario, you can do that, or a homebuyer that will close with the code violation lien. However, this is very uncommon for people to do. We do it. We’ll do it on properties, but a lot of buyers will not do it until those code violations are cleared up.
So, that’s ultimately, what you do is you either sell it as-is with a Hold Harmless, with the liens or with the violation, or you fix the situation and then sell it. So, it’s really up to you. You may make more money on the property if you clear up the violation. It just depends on what time and money you can put into fixing the situation.
8. Is it possible to sell a house with title issues?
Yes, it is very possible to sell a house with title issues. It depends on what kind of title issue it is. If it’s a probate, and there’s not a clear title, it’s going to be pretty difficult. A lot of people will not buy it. We would buy something like that, but most people would not.
If it’s something like a lien, like we just talked about, maybe someone would buy it. If you’re buying out a partial share of the property, then there are some buyers that would probably do something like that. So it is possible. You would just need to talk with a buyer and see what they’re comfortable with doing, and see if it’s a good fit.
9. How does a consultation with Meli work?
To get started, you can give us a call or you can reach out on the website, MeliHomes.com, and let us know what’s going on with your situation. We’ll take a few minutes and talk you through it and see if it’s something that we can work with you on. And if it is, we will.
We will either make you an offer on the house to buy it, list it, or just do a straight consultation. If we decide to work together on a consultation, we would look at the situation and charge you a fee depending on what exactly we need to do to fix it. If you agree, we’ll then perform those services for you. So, yeah, that’s essentially it.
10. How can you list my home if it has title issues?
Well, typically you don’t. A lot of people won’t. What we would ultimately do is we would fix the title issues for you, and then list it. Or we can list the property while it has title issues, then fix those title issues while we’re negotiating a sale of the property.
Let’s say it takes us 60 days to fix the title issues. During that time we will find a buyer for the property if we were to list it for you. That’s how we’ve done it in the past, and it’s worked out really well. We’ve done probates where we’re simultaneously getting through the probate, finding a buyer for you, and having that sale ready to go as soon as the probate is done.
Wrapping Up
As always, thank you very much for listening to this. I hope it was informative. You can give us a call at 407-338-4183. That will get you through to our phone answering service and they will take your information. Also, if you want to call, you can request Evan. That’s me. You can request Evan Shelley directly, and they will transfer you to me and that’ll get you right to my cell, if you want to go that route. Then, I’ll get back to you as soon as possible.
You can also go to our website at MeliHomes.com, and answer a few questions, and that will help us determine what’s going on with your property. That’s it for our September Q&A with Meli Homebuyer, Brokerage, and Consultant. Feel free to reach out, we’ll try to help you as much as we can. Thank 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.
Putting your house on the market in Central Florida without doing any upgrades is a bit intimidating. It can be nerve-wracking to list your home when it’s in a state of disrepair with a neglected yard or a roof that needs replacing. But not everyone has time or money to renovate a fixer-upper.
Selling a home in need of work at a reasonable price isn’t impossible, and it doesn’t require substantial investments. You can use some of these simple tips on selling a house that needs repairs to make your property more appealing to buyers.
1. Take Care of the Yard and Remove Clutter
A 2019 study found that curb appeal contributes to 7% of a house’s value when it is sold. Therefore, it makes sense to focus on landscaping to create a positive first impression with buyers and realtors. You certainly don’t have to spend a lot of money on landscaping; just mowing and edging the lawn, trimming the shrubs, and planting a few flowers may be enough. Removing clutter from your yard can also improve curb appeal.
2. Focus on Some Major Repairs
When selling a house in poor condition, focus on some major repairs since most buyers put a large percentage of their cash into the down payment and can’t afford immediate maintenance after closing. Taking care of these major improvements will allow you to ask for a higher price that covers the upgrade costs and attracts a broader range of purchasers. Some major repairs you can do to increase home value include:
Install a new water heater
Repair pipes or septic systems
Update the HVAC system
Replace kitchen appliances
Update bathroom fixtures
3. Small Changes Can Have a Great Impact
If you don’t have the time or money for major repair projects, it’s worth the effort and money to make minor updates around the home. A few quick touch-ups can help make a positive impression on potential buyers who come to view the property. Some upgrades you can make in a pinch include:
Refreshing your home’s interior with a coat of neutral paint
Removing stains from bathtubs and toilets
Changing light fixtures & bulbs to improve lightning throughout the house
Getting a professional carpet cleaning
Even if your home is not brand new, it must be clean. Dirt, stains, and clutter can turn off potential buyers more quickly that more significant issues like worn flooring or outdated counters.
4. Bring Attention to the Home’s Features
How you stage the home affects how buyers perceive it. When you’re selling a house that needs repairs, consider how you can draw attention away from the property’s flaws.
Talk about your home’s best features, like a spacious master bedroom, additional garage storage, or a walk-in pantry. According to the National Association of Home Buyers, about 83% of home buyers place a walk-in pantry on their buying wish list, making it worth mentioning on a listing.
Buyers can always replace the home’s countertops and other aesthetic elements. But, they are more likely to take the plunge if its location and layout appeal to them. Consider highlighting positive neighborhood features such as local recreational activities, malls, and school districts.
5. Offer the House for Sale “As Is”
Properties advertised as being sold “as-is,” meaning there are no warranties, repairs, or any other assurances conveyed by the listing. If you have a desirable lot size, location, or floor plan, your property may still appeal to buyers even if it requires significant repairs.
Homebuyers who are strapped for cash, distressed home buyers, or individuals looking to flip homes for future rentals are all potential buyers for a home listed “as-is.” A buyer may still ask for an inspection of the home, but a real estate agent can set the expectations of no significant repairs.
6. Engage the Services of A Real Estate Agent
Real estate agents offer a full range of services, including listing your home, staging it, taking photos, and negotiating with the buyer. An agent can recommend what minor repairs will make your home more marketable, and they can make suggestions for staging the property to highlight the home’s best features.
However, keep in mind that a real estate agent takes a cut of the final sale price as commission. This may not be ideal if you’re already accepting an offer that’s lower than you’d like.
7. Sell a House that Needs Repairs to a Cash Home Buyer
Cash home buyers in Central Florida can offer you several advantages over traditional buyers. Homebuyers who acquire properties with cash payments are often willing to buy distressed homes and offer quicker transaction times because they don’t require approval from a third-party lender.
Contacting cash home buyers in Central Florida like Meli is as easy as calling and describing your circumstances and the condition of your home. If interested, we schedule a time to walk through your home and assess its value. You’ll then receive a firm cash offer that you can accept or reject.
When Meli buys your home, we handle the paperwork and pay you in full. We typically close in just 30 days, which is ideal for individuals dealing with a distressed property they need to get off their hands quickly. A cash buyer gives you the best price for your house without all the hassle of traditional listings, showings, and negotiations.
Get in Touch with Meli Homes
While many homes on the market require some level of repair, some require extensive maintenance that can’t be ignored. If you don’t have the financial means to make necessary repairs to your home, consider implementing some of these tips for marketing the property, or contact a cash home buyer in Florida so you can off-load your property as-is without the hassle of listing it.
Every home gets cluttered at times, but some homes end up full of things the owner has no use for. Hoarding is a rare but serious situation in which a home or apartment’s occupant ends up overwhelmed with things and refuses to part with them. Not sure how to sell a hoarder house, or what it even means?
Hoarding is a complex predicament that can have wide-ranging effects on family members. If you’re intervening in a hoarding situation or have inherited one, you don’t have to handle the sale alone. Here are some possible scenarios for how to sell a hoarder house.
Recognizing Hoarding
It’s important to remember that not all highly-cluttered homes are irreparable hoarding situations. If the owner or occupant can clean the clutter, you may be able to get the property to a saleable state.
Hoarding behaviors alone may be considered a mental illness, but can also be tied to anxiety, depression, or OCD. This often makes it more challenging for the individual to tackle the situation or make a change. Even having the help of family or friends isn’t always enough.
Hoarding usually results in unclean conditions around the home that can cause long-term damage to the carpets and walls. This is exacerbated if the hoarder had pets that were not properly cleaned up after. In most cases, hoarding houses are not attractive to traditional buyers because of the level of repairs they require.
Option 1: Intensive Clean-Up
When the occupant has passed away or has consented to selling their home and moving out, the most obvious option is to clean up the house and try to sell it. This may seem like a reasonable choice for low-level hoarders, but the expenses of a thorough cleanup can accumulate quickly, especially if minor repairs are also necessary. Selling a hoarder house can take months or even years if you take on all the tasks yourself.
You will need to enlist the help of a junk removal team and professional cleaners. Junk removal teams look inexpensive at first glance, but they often charge based on the number of items removed. This can add up fast in a hoarding situation.
After that, you may need to enlist a home repair expert to thoroughly inspect the home for damages related to rot and mildew. Many homes require carpet replacement at a minimum, and others need more substantial repairs to drywall, closets, and window frames.
The problem with attempting an intensive clean-up on your own is that the most expensive issues usually don’t come to light until well after decluttering has begun. Renovating a hoarder house can drive up original cleaning and repair estimates by tens of thousands of dollars. When you’re the owner of the house, you’re on the hook for these repairs, even if they end up outweighing the market value of the home.
If there are significant amounts of black mold or rot that have caused structural damage, a home inspector may deem the house unsafe, which will impact your ability to sell a hoarder house.
Option 2: Selling As-Is
If you don’t have the time or means to clean it, it may be time to figure out how to sell the hoarder house. Your second option is to sell the property as-is, leaving any damages for the buyer to deal with. This is not a common option for properties with moderate wear and tear but is worth considering for sellers dealing with a hoarder’s house.
As-is means that the buyer accepts the property with only a basic inspection and walkthrough and cannot back out of the deal in most cases. The buyer has the intention of cleaning up and even significantly improving the property. In dire situations, they could demolish the existing home and rebuild a new house in its place.
When you sell the property as-is, most banks and mortgage providers won’t provide any loans for the purchase. This is because the property is a potential liability, with substantial damage deeply affecting the home’s value.
However, a home can be sold as-is to a cash buyer in many cases. This relieves you of the stress of dealing with the property and allows you to start fresh elsewhere. It also means the sale will be completed more quickly since there’s no waiting time for inspections or mortgage approval processes. For homeowners with a distressed property, an as-is sale to a cash buyer is an excellent solution.
Navigating Potential Buyers
Not everyone has the financial and logistical capability to buy a home in poor shape due to hoarding. A hoarder situation is often far more than the typical fixer-upper that the average DIY enthusiast can handle.
The best buyers for hoarder homes are companies with long-standing relationships with contractors who can handle the cleaning and renovations. A company specializing in purchasing distressed and damaged homes for cash will know exactly who to turn to for repairing the home.
Companies specializing in buying hoarder homes will also know how to cut through the red tape to buy them quickly. In many cases, Meli can close on your home in 30 days or less, allowing you to unload your distressed property fast.
The process with Meli Homes relieves pressure from the seller with a few easy steps. Call us today to answer questions about your home, then schedule a walkthrough so we can get a better look. We can make you an offer the same day, and if accepted, we can close in 7 to 30 days.
If you’re struggling with how to sell a hoarder house in probate or similar circumstances in Kissimmee, Melbourne, or Winter Park and the surrounding areas, reach out to Meli. We are a reputable, local home buying company with excellent reviews and a long list of satisfied sellers.
Meli’s Commitment to You
At Meli Homes, we understand that selling distressed property can be stressful. Our goal is to ease that burden on the seller by handling the paperwork and providing you with a simple process for a cash sale that starts with a phone call.
We work with families facing complex financial situations due to inheritances, hoarding, liens, divorce disputes, and much more. Our compassionate and knowledgeable team can offer you cash for your home and close within weeks. Call us at (407) 338-4183 for a no-obligation consultation to get started.
