Author: 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.

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.

Part of the process of selling your home is getting it under contract. Being another part in the legal process, signing a contract can be intimidating to the average homeowner. You’re not a realtor or a lawyer, so you may not fully understand what it all means.

We took some time to run through the contract you will receive from Meli. Click the link to access a PDF of our contract with a detailed breakdown of each section.

We try to keep our contract simple. Firstly, it’s called an Agreement for Sale. This is a contract that states that you agree to sell your home to our team under the conditions described in the contract.

We’ll Break Our Contract Down Step by Step:

1. The Agreement

The first section is fairly straightforward. We’ll write the date and all parties’ names.

2. Description of the Promises

Here we will include the address of your home and our survey description of your property.

3. Purchase Price

Here we will write the agreed upon price for the property, and the amount you will receive from Meli, and a separate amount (the “earnest money”) we will deposit to the Title Company in the event that we cannot close on the property.

4. Terms

The terms of the contract are the longest and usually the most complicated section of the contract. In our contract there are 10 components to our terms.

1. Closings costs, attorney fees, title fees and other miscellaneous costs are to be paid in the following fashion: Meli pays ALL closing costs, so you don’t need to worry about this portion.
2. Any taxes owed will be appropriately prorated between parties at closing: These will be split based on the time you owned the home during the year. If we purchase your home from you on June 30th, you will only pay 6 months of property taxes since you owned the property for 6 months of the year.
3. Closing to be set as soon as possible for all parties, but no later than _____ without written addendum to this agreement: Here we will write the agreed upon closing date, upon which you will be paid.
4. Property sold “as is” with no warranties implied or stated from seller: We are buying the home from you as is. Once we’ve closed, you won’t need to worry about it anymore.
5. Earnest money to be held in escrow by buyer’s closing attorney: We will write the name of the title company that will handle the closing, including the title search, lien search, payoffs, and dispersing cash.
6. Earnest money non-refundable to buyer unless title is non-conveyable or seller not available to close within time period of this contract: If we are unable to close on your home or the title can’t be cleared, this term states that you will receive the “earnest money,” which was written in line 2 under Purchase Price.
7. This contract is contingent upon clear title and final inspection of the property by buyer or buyer’s agent before closing: The contract is only valid if the title on the property is clear and the property is in the same condition on the closing day as the day that the contract was signed.
8. Seller to provide buyer with permission to access property solely for purposes such as evaluation of repairs needed, appraisal of said property for securing financing, and professional advisement on resell of property. If property is vacant, Seller shall provide Buyer with a key to access property specifically for the reasons above: Meli will  need access to the property for inspections, contractors, and investor partners.
9. Any furniture, fixtures, attachments, and debris located in and around property not removed within day of closing become ownership of buyer: Property left in the home or on the land is owned by Buyer on the day of closing.
10. Additional Terms: Here both parties can add any additional terms they want considered in this contract. A common example we are happy to accommodate here at Meli is allowing you additional time to move out of your home after the closing date.

5. Signatures

Finally, all parties will sign and date the contract.

Questions?

We hope that this post helps you to better understand the contract. If you have any additional questions, please get in touch with us using our contact form, or by calling us at (407) 305-5008.

Meli Homes LLC is not an attorney. Please consult your attorney when making legal decisions.

Inheriting a property can be a very confusing thing for anyone other than a probate attorney. If you own less than 100% of a property you do not have a right to sell the property in full, even if you own 95%. In the case of divorce, people are unable to sell unless there is an agreement between both parties.

For a property to be sold, you will need all parties to agree to sell. Let’s say two siblings inherit a property, each owning 50%. You will both need to sign a deed to sell the property in order for a buyer to retain 100%, and be issued ownership of the property in full.

There are ways to force a sale of the property though. An example is a partition action lawsuit. In a partition action, heirs/divorcees are looking to sell the property when all parties do not want to sell. It is essentially a forced sale of the property that is ordered through the courts. For example, if two heirs own 50% each and one party wants to sell, they can file a partition sale with the courts to try to force the sale. The other party will have the opportunity to fight the motion, but depending on the situation a resolution will be made where all parties are satisfied fairly. That may mean one heir buys the other heirs 50% interest. If one party has been keeping up the property for years, that party may be entitled to reimbursements. If the property has been rented, heirs may be entitled to rental income that is equivalent to percent ownership.

These events can be very emotional for everyone involved. In almost all cases, it will be much easier to form an agreement between each party out of court. Parties can also hire a lawyer for mediation purposes to help reach an agreement. This could sharply shorten the time that it will take to come to a mutual agreement. If filing a partition action with the courts it can take several months if not years for all the appropriate filings, evidence, etc.

Meli helps handle these events every day. We can help point you in the right direction on an appropriate course of action. We always recommend you discuss these events with your attorney; typically, the more communication between parties that are involved, the better the situation will turn out. It is much easier and less expensive to sit down and discuss problems directly than using attorneys, courts, judges, etc.

Give Meli a call or contact us using our form to begin a discussion on how to figure out the situation. Inheritance, Probate, and Divorce issues in real estate are topics that we deal with, and we can help you figure out the best solution.

Meli will work to buy your property quickly if all parties decide that is what is needed.

Meli Homes LLC is not an attorney. Please consult your attorney when making legal decisions.

Sellers enter the market for a wide variety of reasons. For some people, they have found their dream home and come to us saying “I need to sell my house fast”. Some need to bail themselves out of a challenging financial situation like foreclosure, while others may need to urgently relocate to another state or country for a new job.

In certain situations, sellers want to move and make a profit so they can invest in their dream home. Foreclosure is one of the most stressful situations that prompt sellers to sell fast so they can make some profit. Regardless of your reasons, selling a house fast doesn’t have to be overwhelming. Just be sure you enter the market with a well-organized and pragmatic strategy.

Generally, overpriced properties take much longer to sell. The majority of overpriced listings will end up selling below market value. Zillow conducted a survey in 2018 that showed that most homes spend about 68 days on the market before selling. A thirty-day time period is a more relaxed schedule to attract offers, undergo negotiations and finally, enter the closing process.

The selling process consists of several strategies and factors you’ll need to consider carefully. This includes greater emphasis on adding value to attract buyers and advertising your home through all available channels. If you want to sell your house fast and you’ve never been involved in the real estate market before, Meli recommends that you hire the services of a reliable realtor. Learn more about your options for selling your home.

Here’s Everything You Need to Know:

When it comes to selling a house, there is no one-size-fits-all solution. Every house is unique in its own right and offers something different to each potential buyer. If you find a potential buyer for your property, it would be easy to begin negotiations and sell your house.

The amount of time it will take to sell off your home depends on several things about your house. This can include the market value of it, the listing price, and your luck at landing a buyer.

Working with a Realtor and Creating a Timeline

If you decide to sell your home through traditional real estate, it’s important to enlist the assistance of a real estate agent. They are experienced in market research and will know the average number of days a property spends on the market. A realtor can help you devise a timeline and an effective strategy. This will help you determine the number of days it will take to sell at the ideal price.

Selling By-Owner? Read our blog post on selling your home without a realtor!

Setting the Listing Price

The listing price is the most visible, make-or-break factor in selling a home. Homebuyers searching for homes typically have a budget in mind, and while they have the opportunity to negotiate the price with you, your listing price may be concerning to some buyers for many different reasons. Setting the ideal listing price is instrumental for a speedy and profitable sale. Industry insiders strongly advise sellers to market their homes with a competitive listing price. A competitive listing price is typically slightly less than other comparable listings throughout your neighborhood. This strategy works wonders in attracting multiple offers. These offers will increase the value and price of your property, and if you manage to garner more than one offer, you can negotiate a profitable rate. Particularly interested buyers may even bid against one another in order to secure the contract on your home.

How Important is Location?

The Answer: Very. After your home’s listing price, the location of your property has the most significant impact on selling. If your property is located in a highly desirable neighborhood that is centrally located, offers modern amenities, and has a high-ranking school system, it will be incredibly attractive to potential buyers. On the other hand, properties that are located near busy roadways, in remote locations, industrial sites, or less desirable areas with low-grade schools, you’ll likely receive fewer offers at your asking price.

The Curb Appeal of your Property

Your property’s curb appeal can be determined by its condition, upkeep, and appearance, alongside a wide range of other factors that determine its external and interior design. If your home is well-maintained, looks clean, and has a good layout, buyers will be encouraged to step inside and explore the home. Potential buyers who tour the home are far more likely to be able to envision themselves living in it, and your home will fare better on the market and garner more offers.

A messy, cluttered and unkempt house, however, is highly unlikely to attract many offers, and even if it does, the buyers will be willing to pay much less than the listing price as they will also be considering the expenses required to improve the property. Before listing your home, be sure to work on eliminating clutter, and look after any neglected upkeep. Take time to clean from top to bottom, and remove personal items when staging your home for showings. Buyers will be picturing themselves living in the home. It’s harder for them to see themselves living there when there is still evidence of your life in plain view.

The Bottom Line

Overall, there are so many factors to consider when you’re selling a home. Selling your home fast is a goal to aspire to. But, when selling through traditional channels, especially if your home is distressed or facing legal issues like foreclosure, tax code violations, or probate, it can be stressful and difficult to try to sell your home quickly.

We at Meli excel in buying homes fast, particularly in these situations. If you’re in a “sell my house fast” situation, get in touch with us using our form or call us at (407) 338-4183 and we can discuss your situation. If we determine that we’re a good fit for you and your home, we can work together to purchase your home in 30 days or less, letting you walk away with money in your pocket and one less thing to worry about.

We look forward to hearing from you!