Category: blog

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!

Several years ago, Florida’s flourishing real estate market was struck with the unfortunate blend of risky mortgage loans and overenthusiastic speculations by real estate analysts and developers. This turned the state into the poster child for distressed homes.

The housing crisis haunted investors, buyers, and real estate agents for years, halting a variety of development and investment properties. Foreclosure filings across the state increased at an alarming pace. To this day, investors and homeowners are still dealing with the repercussions of those risky loans and overzealous market predictions.

Why Central Florida?

Central Florida is still known as the industry of distressed homes. In 2006, around 75,000 Central Florida properties were facing foreclosure filings. That number rose to an alarming 517,000 in 2009. This marked a 600% increase in distressed homes in just 3 short years.

After an entire decade has passed, the Sunny State of Florida now enjoys a flourishing and thriving real estate industry. Because of that, the number of foreclosures, albeit reduced, remains higher than other prosperous states across the country. Statistics show that in 2017, the total number of annual foreclosure filings was more than 65,000. That remained constant throughout 2018.

However, despite its declining foreclosure filings, Florida still tops the list in terms of total properties facing foreclosure. In 2018, a survey conducted by ATTOM revealed that Florida emerged as the state with the 6th highest foreclosure rate in the U.S. For every 140 households in Florida, one is facing foreclosure.

The forecast issued by the Florida Chamber of Commerce reveals that employment opportunities and population across the state are growing. And, in 2019 we saw a reduced risk of economic recession. In the past decade, Florida has become the top choice amongst retirees, not just from the U.S., but from across the world.

The state has also become famous amongst millennial investors. The distressed properties scattered across the state provide these investors a prime opportunity to own a house of their own. Given the stressors prompting homeowners and financial lenders to arrange a quick sale, it presents thrifty and budget-conscious investors a prime opportunity to invest in an affordable investment package.

Selling Your Distressed Home

If you want to sell your distressed or difficult-to-sell home, Central Florida is one of the best places to do so. Investors look for distressed homes in centrally located areas in some of the best metropolitan locations and neighborhoods. It is one of the best U.S. locations to buy foreclosure properties, and it has maintained this position since 2013.

Distressed homes typically experience a longer period of time on the market. And, as the number of foreclosed homes on the market grows, the total sales of foreclosed homes continue to rise. Needless to say, Central and South Florida are some of the hottest markets to sell distressed property. So, if you need to sell your home fast, you’ll do well in neighborhoods and developments in Central Florida.

Homebuyers, investors, and retirees too have a lot they can browse through in a market of distressed properties throughout Central Florida. From scenic waterfront neighborhoods, multi-family homes, and homes that need TLC, there’s a house that will be perfect for anyone. Florida’s distressed home market is dynamic and offers sellers the opportunity to get out of a difficult situation fast. Plus, investors have the opportunity to settle in the sunny state without the burden of heavy mortgages and financial rituals.

Why is it so Difficult to Sell a Distressed Home?

An alarming number of Florida homeowners are crippled with the burdens of a mortgage, and in order to avoid the deductions that come from foreclosure on their credit reports, they may try to put their house on the market to cover their losses. Homeowners who are already facing foreclosure tend to be even more anxious to sell out, and such sellers tend to feel like they can pose few demands in hopes of receiving a fair settlement.

A majority of Florida’s distressed homes spend months on the market, and as the market grows saturated, their demand and listing prices continue to decrease. It’s important to note that some of these houses may be unkempt, vacant or stuck in legal issues, and homebuyers will likely have to spend a sizable amount of repairing, refurbishing, and renovating the properties. These problems scare off a lot of potential buyers, but not Meli. We specialize in purchasing homes with these very issues. Get in touch with us if you’d like to learn more and request a free quote!

If you’re looking to sell a centrally-located distressed home in a vibrant community, located near Disney World or other leading attractions in Central Florida, Windermere, Clermont, Dr. Phillips, Gotha, Orlando, Winter Garden, or anywhere in Florida, please reach out to us at Meli. We’d love the opportunity to speak with you regarding your situation.

Selling a house without a real estate agent can be an overwhelming journey filled with hurdles. If you’re adamant about saving on agent commission and closing costs, it’s important to do your market research and learn about tried and true selling strategies. In this article, we will walk you through the tricks and tips of industry insiders that will help prepare you for the arduous task ahead.

Here’s everything you need to know:

Prepping the Property

It’s important to prepare your house to make a smooth landing on the market. Before you allow potential buyers to tour your property, there are a number of measures you need to take. First and foremost, you must declutter and depersonalize the space to remove all elements and belongings that will remind the buyer of you and your family.

Invest in a storage unit where you can place all unwanted items that you have stuffed inside your closets, garage, attic, and basement, and remove all photographs and personal items that make the house your home. Experts generally believe that removing one-third of all the fixtures and furnishings is ideal to make the space look breezy and de-cluttered.

Get rid of your memorabilia and create an ambience that allows potential buyers to imagine themselves owning your house without any unnecessary distractions. Be sure to clean the house from top to bottom – scrub all the appliances, wash the curtains and deep clean the tiles. Be sure to light some scented candles and open up the curtains to fill the space with warmth and sunlight.

As you are preparing your property, take some time to boost your home’s curb appeal. The exterior of your house is the first thing potential buyers will notice. Mow the lawn, add some flower pots to the entryway, and clear up all trash and clutter. If you can afford it, a fresh coat of paint would certainly do wonders at giving your house a cleaner, fresher look. If you’re on good terms with your neighbors, it may be a good idea to ask them to clean up their yard – or offer to do it yourself. Potential buyers will not want to live next to a house with poor curb appeal!

Choosing a Listing Price

Sellers often make the mistake of pricing their house much higher than the market value in a bid to make profitable gains, but this strategy typically causes the property to languish on the market until sellers are forced to reduce the price, and thereby the appeal of their listing. Instead of being hasty about choosing a listing price, take your time when conducting research. Be sure to examine the prices of similar properties in your neighborhood, and find a competitive price that will make your property more desirable.

Multiple Listing Service (MLS)

The Multiple Listing Service (MLS) is the ultimate savior of homeowners who decide to sell by-owner. It’s the most trusted listing service across the US, and it allows buyers and sellers to come together in an online market. If your house is listed on MLS, it will be connected to other popular real estate platforms, such as Zillow. Keep in mind that this listing is likely going to cost you a flat fee.

Market your Listing

Realtors prove extremely helpful in marketing your home, but there’s no reason to say that you can’t do it yourself. Aside from listing your property on the MLS or other real estate listing portals, be sure to advertise it online on social media, and deploy the assistance of “For Sale by Owner” signs and brochures. You can set out yard signs and brochures, and rest assured that these advertising costs won’t exceed the amount you would have to pay to a realtor.

Staging an Open House

Open houses are a great strategy to attract the attention of scores of potential buyers, and you can easily arrange one for your property. All you have to do is advertise your open house event across your neighborhood, in your local community center and online, using social media marketing tools.

The event itself has to be sophisticated, and you can always provide some light snacks and some brochures to inform the potential buyers about the various features of your house. Here’s an industry insider tip: Put some vanilla essence and brown sugar into the oven and let it preheat for a while, until your home is filled with the warm smell of freshly baked cookies. Light up some scented candles, open your blinds or curtains, and allow sunlight to fill each room.

Negotiations

Negotiating with the buyer is the final stage that most sellers find overwhelming, and since this stage involves contracts, legal jargon and financial matters, it’s important to do your research. The seller can accept the proposed contract or request changes. After an appraiser comes to your house, there may be signs of damage that were not readily apparent, and the buyer is very likely to request that you make repairs or they will renegotiate a lower price to compensate for the anticipated repairs. It is important to know your desired selling price and make active efforts to negotiate and sway the buyer to come to your terms. You will need the assistance of an attorney while devising or revising the contract.

Selling your home by-owner is something of an undertaking. Realtors exist for this reason. It’s not impossible to sell your home yourself, but it takes much more time and effort than it takes to list your home through traditional channels. If you’re looking to sell your home but don’t want to deal with the hassle of listing by-owner or through a realtor, contact Meli and we can discuss your situation.

You’ve received an offer on your home and you’re anticipating the closing process. But, before that, all sellers must experience the necessary and nerve-wracking ordeal of a house appraisal. 

Industry experts believe that appraisals are one of the most common reasons why buyers back out of a deal. Even if the seller doesn’t back out, a home appraisal can have a significant impact on the final closing price.

A survey conducted by the National Association of Realtors revealed that house appraisal issues account for 25% of the contract delays. An appraisal can be overwhelming. But, if your property is well-kept and you’ve taken measures to upgrade the house and add more value, you have nothing to worry about.

Here’s everything you need to know about what to expect during a home appraisal:

Give the Appraiser Unrestricted Access to the Property

The home appraiser will need unrestricted access to examine and inspect every nook and cranny of your property. The primary responsibility of the appraiser is to examine the property for defects and signs of damage. They’ll examine the construction of the house and how the property has been maintained. 

From the attic to the garage, prepare yourself to get comfortable with the idea of an appraiser running around your house. They examine each corner and inspect the drainage system, amongst other aspects.

Appraiser Undercover

In order to examine the true market value for your property, the appraiser will go undercover and conduct research on aspects you’re likely unaware of. The appraiser has to do a lot of research behind the scenes and comb through various sources. 

The appraiser will examine private data vendors and county courthouse records. They’ll also use the Multiple Listing Service and neighborhood trends to examine the current listing and sales prices across your neighborhood to compare the prices with the value of your property. A field inspection will also be done. This typically involves an overview of the external features of properties that compare with your house in terms of size, features, and price.

Prepare the House for a Photo Shoot

It‘s important to keep in mind that the appraiser will take photographs of the exterior and interior of your house. Therefore, it‘s important to make sure that all rooms and spaces across the property are squeaky clean, de-cluttered, and well-arranged. Be sure to organize the house and spruce it up with natural sunlight and plants before the appraiser arrives.

The home appraiser is required to take photographs. The moneylender will be interested in examining them to see the condition of your property. If your house appears to be cluttered and unkempt, the lenders are likely to assume that your property is ill-maintained. To avoid this, start cleaning and maintaining it as soon as you decide to sell it. This helps avoid the last-minute stress of going on a massive cleaning spree and the awful disappointment of rejection from lenders.

Sizing Estimates

The appraiser is also going to undertake a thorough estimate of the square footage of the entire property. This includes the exterior and interior of the house and all living spaces. However, the square footage measurements in the appraiser’s calculations doesn’t include non-living spaces, such as the garage or patio. This tracks any changes or expansions you’ve made to your house that may not be reflected on the record.

Overview of the Property

The appraiser’s report usually includes an overview of the entire property. This includes the layout, condition of appliances, and any upgrades you may have added to your home. The appraiser will record the number and sizes of rooms or spaces in the house alongside the floor plan and a number of other aspects that help them determine the overall condition of your property. 

It’s important to note that an appraiser doesn’t perform the same services as a home inspector. However, be prepared for them to record all apparent signs of damage and defects in your property. In order to ensure you receive the best appraisal, be sure to perform thorough repairs and clean up your property. This includes the interior and exterior of your home to ensure it’s lively and well-maintained.

Instead of fearing the house appraisal, focus on sprucing up and adding value! Doing so would appeal to potential buyers and lenders. If your house is well-maintained and you’ve made upgrades to boost the market value, you have nothing to worry about!

If you’re selling a house that needs repairs in Orlando, Tampa, Kissimmee, or the surrounding areas, Meli can help. Give us a call at (407) 338-4183 to schedule your walk-through and receive an offer. 

What you need to know about Orlando investment properties:

The house-flipping industry in Orlando, FL is currently booming, but becoming increasingly competitive according to the Orlando Sentinel. The Orlando Sentinel published an article in 2019, compiling multiple interviews from house flippers, several real estate experts, and senior economists on the latest house flipping situation in Central Florida.

Orlando ranks as one of the top markets to flip houses in the United States, and investor participation in this industry has blown up since the economy has recovered from the 2008 recession. The rise of Orlando’s investment properties has been correlated to the strength of its economy. Orlando has an incredibly low unemployment rate, an increase in construction, a high number of people moving to the area, and home value continuously going up.

The great rise in investment properties has posed a problem to investors. More people have gotten into house-flipping, which has to lead to decreased inventory and lower profitability. Several homes face distressing situations that include issues with titles, code violations, unpaid homeowner association fees, and various other problems. Sometimes, people inherited a house and want to sell it. Many times, a homeowner wants to get out of their distressed home. These issues stand in the way of investors purchasing their property. 

The distressed property situation has been looming over homeowner and investor heads, but Evan Shelley at Meli Homes has targeted this niche market and found the resolution to this difficult situation. Evan purchases these distressed homes and then finds investors to flip these properties. It’s a win-win-win for homeowners, Meli, and investors.

Although this is a lucrative business, it is warned that those new to house-flipping ease their way in by renting out flipped properties. This will allow beginners to appreciate the real estate business and gain experience to eventually become expert real estate investors.

The Meli Experience

Meli Homes is a small business located in Orlando, Florida that was created by Evan Shelley. It’s Meli’s pleasure to serve Florida homeowners struggling to sell their homes for one reason or another. There was a need in the community and created our business to help Floridians who weren’t able to handle the difficulties that come with selling homes that are distressed.

Meli works closely with partner attorneys, realtors, and investors to purchase homes from our neighbors in these situations. Our goal is to help them find the best solution, even if it isn’t with us. We truly want to help people who are struggling – those who inherited a house and want to sell it, or whose titles are trapped by probate, code violation liens, and more. At Meli, we believe that you deserve to live without the stress these issues can cause. That’s the Meli way.

If you‘re in a difficult-to-sell home and are interested in selling it quickly, contact us!

Did you just inherit a house or commercial property? Inheriting property without having to make any mortgage payments or grueling property tax payments is nothing short of winning the lottery. But before you get overly excited, it’s important to prepare yourself for a wide range of mind-boggling legal and financial conundrums. 

In this article, we will walk you through some of the aspects that most probate property owners and inheritors tend to be unaware of, alongside mapping out your prospects about the sale and profitability of the property.

Here’s everything you need to know:

What are your options?

You’re likely overwhelmed with emotions and memories when you’re the inheritor of a loved one’s property, but keep in mind that the property might come with pending bills and existing debt payments. Eventually, you will have to make the tough decisions when exploring your options of selling, renting, or moving into your inherited home. 

If you are currently renting, moving into the inherited home may be the best idea. The situation can get complicated if the house is not vacant and is occupied by other relatives, however. If you share the inheritance with two or three other people, it can be extremely challenging to decide what to do with the property, and moving in also becomes complicated. 

If you intend to make money off of the inherited property, you have two simple options: sell the property or rent it out. Given the extensive potential for opening up a passive income stream and the increasing potential of Airbnb rentals, it is highly advisable to rent out the entire property, or even offer various parts of the house to different tenants. 

However, if you have more than one partner sharing the inheritance, selling it out and sharing the profits may be your best option. If the property is in debt or requires you to make outstanding payments, selling is usually the best option.

Tax Evasions & Payments

Most inherited property owners are unfortunately unaware of the massive tax breaks they can enjoy when selling their property. If you sell the inherited property, you will not be required to pay a capital gains tax, regardless of any appreciation of the property since it was purchased. This will allow you to receive a tax-free profit, and the tax payments sellers typically owe will be yours to spend or save, at your discretion. 

However, keep in mind that you might be required to pay some other significant tax payments. Estate taxes are a tax payments that can be incurred if the property consists of more than $5.43 million in assets. This tax payment tends to vary on the basis of the state where you have inherited the property.

The estate taxes in Oregon and Massachusetts are incurred on estates valued at over $1 million, while estate taxes in New Jersey are levied upon estates worth more than $675,000. New Jersey residents are also subjected to an inheritance tax.

How “free” is the Inherited Property?

Even though your inherited property has come to you for free, it still likely has its own expenses. For instance, if the house has a mortgage, the estate can be used to clear the debt. However, owning a home is always expensive, even if you don’t have to worry about clearing debts. 

Prepare yourself to pay homeowner’s insurance, liability insurance, and property taxes, alongside the expenses of general maintenance and upkeep, heating, electricity and other day-to-day costs.

Inherited Properties come with Baggage

Inherited properties come with a wide range of financial and emotional challenges, starting with the arduous task of dealing with the physical belongings of the deceased, which include the furniture, fixtures, appliances, household belongings, clothing and more. If the property has been inherited from your parents, you and your siblings will have to deal with the emotions of divvying up items that hold sentimental value. Dividing such items can create challenging situations amongst family members. 

If you are preparing the house for sale or rent, you will have to undergo the emotional ordeal of moving all the personal belongings and items of your loved ones. If you have recently handled the passing of your parents, selling or renting the inherited property can quickly become a difficult ordeal, and often, many people with inherited houses tend to avoid clearing out to sell the property. 

It is important to prepare yourself to handle the emotional difficulties and stress to avoid the long-term consequences of inaction. If you are not selling off the property and not living in it, the insurance and maintenance costs will only increase in the long run, which will only add to your emotional stress by increasing your financial obligations.

Closing costs are sometimes an unknown for first time homesellers. “What are closing costs for the seller?” and “How much are closing costs?” are common questions we hear.

What are closing costs?

Closing costs for the seller are fees they must pay when they sell their home to a buyer. The closing fees will be used to pay the title/escrow company that facilitates the transaction. The closing costs ensure a smooth transition between the buyer and seller. These closing costs will include the transfer of a clear title, check for liens on the property, title insurance, and other requirements that vary from state to state, such as:

• Title and Lien Search: Ensures the title for the property is correct and has no outstanding liens or judgments.
• Title Insurance: Protects the homebuyer from any issues with the title that were overlooked in the Title Search.
• Recording Fees: Your title company or attorney will file the signed deed with the county office to show new ownership.
• Settlement Fee: Paid to your title company for handling the closing.

How much are closing costs?

The average closing costs for the seller usually range between 1-3% of the home’s selling price. The seller should expect this amount to be taken from their proceeds of the sale. For example, if you sell the property for $100,000 you will pay between $1,000 – $3,000 in closing costs.

What closing costs do not include?

These closing costs do not reflect the fees you will pay your realtor, usually ranging from 5-6% of the sales price. The closing costs are not including seller concessions to the buyer. For example, if during the home inspection the buyer finds something they do not like they might ask you to cover more of the closing costs to make up for it.

What should you expect to pay in total?

You can expect to pay somewhere between 6-9% of sales for the entire transaction that includes the closing costs and realtor fees.

What are your alternatives?

When getting an offer from Meli, we pay all closing costs. You don’t have to worry about additional fees when selling your house, like paying closing costs or realtor commission. We will buy your property as-is with no concessions. The amount that we offer is the amount you will receive.

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.